Hoggers held franchise licence for Steers and Debonairs brands locally.
However, Famous Brands is set to run the business through its local subsidiary FB franchising Kenya.
South African-based restaurant fanchisor Famous Brands is set to take direct control over seven outlets previously run by local franchisee Hoggers.
Hoggers held franchise licence for Steers and Debonairs brands locally. However, Famous Brands is set to run the business through its local subsidiary FB franchising Kenya.
Famous Brands is also the parent company of the Mugg & Bean chain restaurant that has recently opened a number of outlets across Total Petrol following signing of a partnership deal with the oil marketer.
Famous Brands move to control its local business comes a year after South Africa-based Mr Price Group made a similar move when it reclaimed its franchise from fashion apparel retailer Deacons East Africa. The franchiser is now set to embark on an expansion drive once the regulators grant the parties the go-ahead. The buyer is set to use cash reserves to buyout Hoggers.
Hoggers declined to reveal the value of the transaction citing a non-disclosure agreement between the parties.
“I can tell you that this is part of an overall restructuring that will enable the expansion of Steers and Debonairs Pizza Restaurants under a franchising model. A public announcement will be made at a later date,” said Mr Azam Samanani, managing director Hoggers.
“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 The restaurants were managed by the Master Licensees until 2017 when the license was revoked.
“ The transaction is subject to suspensive conditions, including regulatory approvals. Assuming the successful conclusion of the acquisition, the deal will be effective 1 November 2019,” said Famous Brands in a statement.
“The rationale for the acquisition is in line with the Group’s narrow and deep strategy in the rest of Africa region, which centres on cautiously building a presence in select and tested markets which offer opportunity for expansion. The intention is to revamp the existing restaurants as a priority, and in time, expand within the market as trading conditions permit.”
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.
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