Small eateries make a meal out of Famous Brands deals
SMALL-restaurant owners now under the Famous Brands wing are relishing the group’s corporate flair and logistics prowess.
One benefit they take away from the co-ownership agreement with the country’s biggest restaurant and fast-food chain is the growth and popularity of their brands.
Famous Brands, which owns Europa, Mugg & Bean and Wimpy restaurants, has in the past five years bought controlling stakes in several small restaurants.
Tashas opened in Atholl Square in Sandton, Johannesburg, in 2005.
The founder, Natasha Sideris, had owned a Nino’s in Bedfordview since 2001. By the time she was approached by Famous Brands in 2007, she had opened two Tashas restaurants and was planning two more.
Today the brand has 13 restaurants in South Africa and one in Dubai.
When she was courted by Famous Brands she thought her restaurant concept would never work with the fast-food giant.
“They seemed like an unlikely fit because they do a lot of roll-outs. I had a very good relationship with Kevin Hedderwick (Famous Brands’ former CEO) and I knew that Famous Brands will give my business the kind of support it needs,” she said.
She was drawn by Famous Brands’ handling of administration. “It’s simple but very detailed.”
Sideris was not fazed by the international competition from Domino’s Pizza and Starbucks.
“Anyone who is selling food is competition and when an international brand comes to South Africa it causes national brands to up their standards,” she said.
Home-grown food was vital to South Africans, she said. Despite her belief that many US brands were a bit of a fad, she said it was exciting for a country to get new concepts.
“Americans are known for quick service and fast food — so it’s important that there is hype in the beginning, but with a good plate of food, a good cup of coffee and a burger, your brand will enjoy a fair amount of competition from the international brands,” she said.
Steakhouse brothers Brian and Mervyn Aaron, who founded Turn ’n Tender in 1977, are overwhelmed by Famous Brands’ ability to streamline their operations.
Having just celebrated the 39th year in the business, Brian Aaron said the family was still attached to the brand. “We are very much handson in our restaurants,” he said.
The first Turn ’n Tender was opened by the four Aaron brothers (Steven and Howard were the other two) in Greenside, Johannesburg, and later run by Brian and Mervyn.
The brothers owned four steakhouses and a butchery when they were approached by Famous Brands. Turn ’n Tender now has 10 restaurants and plans to open five more.
Brian runs between restaurants to GO NORTH, YOUNG MEN: Guy Cluver, left, and Chris Black, the founders and owners of KwaZulu-Natal chain Lupa Osteria, are opening in Gauteng make sure they stick to the rule book while big brother Mervyn takes care of the meat business.
Brian is not afraid of the international competition because, with 39 years in the steakhouse business, “I know the local diner better than anything”.
He welcomes the competition because it keeps them on their toes.
The latest small-business owners to join Famous Brands’ growing family are Guy Cluver and Chris Black, who own Lupa Osteria, a chain of KwaZulu-Natal-based pizza and pasta restaurants.
With their eyes set on opening a restaurant in Gauteng, partnering with the country’s corporate giant appeared to be the answer.
Lupa Osteria has three restaurants — in Durban North, Hillcrest and Westville.
Famous Brands plans to grow Lupa’s footprint to six restaurants in KwaZulu-Natal and increase this to HOME-GROWN: Tashas in Rosebank, Johannesburg. The chain benefits from Famous Brands’ administration ability 35 over the long term.
Cluver said he believed the transaction was a trade-off, “however, KwaZulu-Natal is a small pond”.
“For us to expand into the Gauteng market we felt we needed to partner with a big player and we think Famous Brands are the right people,” he said.
The key for the two KwaZulu-Natal entrepreneurs was to open in Gauteng to get a foothold and do what Tashas had done.
“With our partners going forward we can deliver that,” said Cluver.
“[With] their support and them running the back end of the store and all the admin, which is what Famous Brands is particularly good at, we can focus on building stores and training staff and look after our customers.”
He said competition by international food outlets was healthy.
“The fact that we are a local outlet and we understand the local market will play into our favour. We understand what people want, what they prefer and their taste.
“South African consumers still want to sit in a restaurant and have a good bottle of wine and spend at least two hours or more.
“It’s all about the experience other than food on the go,” said Cluver.