South Africa’s Famous Brands Buys 51% Of Local Chain

Last month, South Africa’s biggest franchise group, Famous Brands, acquired a controlling interest in Retail Group, its licensee in Botswana. Established in 2000, Retail Group comprises 19 company-owned restaurants and manages nine franchised restaurants across Botswana. Its portfolio includes Wimpy, Debonairs Pizza, Mugg & Bean, Milky Lane and Steers outlets.

A consortium of investors currently owns Retail Group, with the majority stake held by Craig Mackenzie, a long-standing business partner of Famous Brands and founder of Debonairs Pizza in 1991. The transaction is subject to approval from the Competition Authority of Botswana.

In South Africa, Famous Brands has its own manufacturing and logistics arms to support its businesses. Such services are likely to be extended to Botswana, where foodservice is booming and such services usually are outsourced. There has been a 44% increase industrywide in franchised foodservice outlets over the last five years.