Listed fast food group Famous Brands has purchased Britain’s Gourmet Burger Kitchen (GBK) for R2.1 billion (120 million pounds).<\/p>\n
The purchase price is converted at the GBP\/ZAR exchange rate of R17.537, far more favourable than the current rate of R19.23.<\/p>\n
Famous Brands, which also owns casual dining chain Wimpy UK and fast food assets such as Steers and Debonairs, said it plans to double the upmarket burger chain’s 75 British stores in the next five years.<\/p>\n
“Brexit has had some upside for us,” Famous Brands group adviser for M&A Kevin Hedderwick told Reuters.<\/p>\n
The firm said it saved as much as 700 million rand on the acquisition, as the pound slumped following Britain’s decision to leave the European Union and South Africa’s rand firmed after relatively peaceful local elections.<\/p>\n
Hedderwick sees GBK opening 10-15 new restaurants in Britain per year and plans to expand further in Ireland and take the gourmet burger concept to South Africa.<\/p>\n
“The fast-casual premium environment is pretty recession proof,” he told Reuters.<\/p>\n
GBK was founded in 2001 and is the market leading premium burger restaurant chain in the UK.<\/p>\n
Since launching in 2001, GBK has expanded primarily in the UK and Ireland. In the UK, GBK is represented by 75 company-owned restaurants offering eat-in and take-away service and online delivery.<\/p>\n
Alasdair Murdoch, CEO of Gourmet Burger Kitchen, said the company will aim to continue opening 10-15 restaurants a year in the UK.<\/p>\n
The next big fast food market in SA \u2013 Mexican food<\/strong><\/a><\/p>\n