- The loss reflects increased competition in the sector that is also served by KFC.
Kenya's Steers and Debonair’s Pizza under the Famous Brands posted a loss of Sh4.86 million (R767,000), reflecting increased competition in the sector that is also served by KFC.
In its financials for the year ended February 2020, South Africa-based restaurant fanchiser Famous Brands disclosed the loss was posted by its local subsidiary, months after it took direct control of Steers and Debonair’s outlets in Kenya.
The SA based firm bought out Hoggers — the Kenyan firm that held franchise licence for Steers and Debonair’s Pizza locally — to run its businesses through FB Franchising Kenya.
The group has acquired the seven trading outlets owned by former Master Licensees, Hoggers, in Kenya, as a going concern.
The restaurants were managed by the Master Licensees until 2017 when the licence was revoked.
The transaction took effect on November 1, 2019. A Gazette notice published on August 23, indicated that the outlets up for takeover are within Nairobi, where some are located in Donholm, Ngong Road, South C and Kiambu Road.
The firm suffered a hit in 2017 after losing its prime location on Wabera Street after a rent dispute with the landlord and it also shut down its Kenyatta Avenue branch due to inadequate sitting space.
The loss of the branches coupled with increased competition from other franchises including KFC and Simbisa’s Chicken Inn and Pizza Inn have seen the businesses continue to struggle.
Famous Brands indicated in a statement at the time that “the rationale for the acquisition is in line with the Group’s narrow and deep strategy in the rest of Africa region.”
It said the strategy centres on “cautiously building a presence in select and tested markets which offer opportunity for expansion.”
Famous Brands is also the parent company of the Mugg & Bean chain restaurant that has recently opened several outlets across Total petrol stations in a deal with the oil marketer.