A bloodbath by any measure

The casual-dining sector in SA contains some remarkably high quality operations, with an uncanny ability to tweak their offerings to the changing taste of consumers and to keep on churning out earnings growth. And this is being achieved despite the flagging economy exerting serious pressure on disposable income.

On the evidence of its performance in the year to end-february, Gold Brands has a long way to go before it is included in this exalted company. Losing R48.5m on turnover of

R142.8m is, under any circumstances, a bloodbath.

Its website entices potential franchisees to “join the fastest growing, best loved fast food franchise in SA”. Perhaps when it says “fastest growing” it might be more accurate to claim to be growing fastest in number of stores closed in a 12-month period. The group has undergone restructuring that has put a halt to the opening of new franchises and resulted in the closure of more than 155 underperforming franchises during the year. The group says most franchisees have “very little or no business experience” and that, as a result, “not all of them end up being successful”.

Gold Brands is pinning its hopes on an ambitious plan to partner with the UK’S Casual Dining Group, and to bring a range of upmarket international brands to our fair shores.

It is also hoping to bring the wonder that is Chesanyama to the Great British market, and to tear those consumers away from quinoa and sushi and to the sheer delight of Chesanyama’s famous 1 m wors — a bold move in anyone’s book.