South Africans will in future be able to dine at United Kingdom restaurant chain Gourmet Burger Kitchen (GBK), following Famous Brands’ R2.1-billion buyout of GBK Restaurants.
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The GBK brand is just one of a number of different chains in a highly competitive environment, as discerning consumers look for something more distinctive than the mass-market fast-food giants.
“Brexit has had some upside for us”, said Famous Brands adviser Kevin Hedderwick.
GBK, which was founded in Battersea in 2001, now operates 75 restaurants across the UK.
Famous Brands said it had ambitious plans to double GBK’s estate in five years time by expanding the upmarket burger chain into South Africa as well as continuing to open new sites in Britain.
While the transaction is subject to approval from the SA Reserve Bank, in terms of exchange-control regulations, Famous Brands said it would fund the purchase consideration with cash accumulated in its business operations and, to the extent required, short-term funding.
GBK was first launched in 2001 in London, and in 2010 the business was acquired by the Yellowwoods Group.
“The business has also recently concluded an agreement to re-acquire the franchise rights to own and manage the five GBK restaurants in Ireland, which provides an immediate platform for growth and a significant overseas footprint”.
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Kevin Hedderwick, Famous Brands’ strategic adviser, said the group will continue to expand in the United Kingdom, opening 10-15 restaurants a year, and also look to export the brand to South Africa. In the UK, GBK is represented by 75 company-owned restaurants offering eat-in and take-away service and online delivery.
