SOUTH AFRICA – Newly listed fast foods franchisor Gold Brands Investments, which owns the Chesanyama brand, has acquired affordable eatery concept Mama Chaka’s — heralding an unexpected return to the JSE of food sector entrepreneur Dennis Finch.
On Monday, Gold Brands said it would pay between R15m to R20m for Mama Chaka’s, depending on the achievement of profit warranties.
The vendors of Mama Chaka’s are Roelcor Holdings, Axiom Developments, where Finch is a director; and Yvonne Mhinga (vocalist and composer Yvonne Chaka Chaka), serves as the brand ambassador.
Finch, who was last seen on the JSE in the late 1990s with the listing of restaurant franchising cluster King Consolidated Holdings (Kingco), will join Gold Brands to run the Mama Chaka’s division.
Finch listed Kingco, which at one time owned fast-food and restaurant brands such as Bimbo’s, Mike’s Kitchen, the Keg, McGinty’s, and Saddles in the late nineties.
Kingco was not a listing savoured by the market, and after enduring a torrid trading period for about 10 years, it was delisted from the JSE in 2009.
The Mama Chaka’s concept and brand was developed by Finch in 2014, and mainly comprises of meals based on affordable and traditional chicken and beef recipes.
The Mama Chaka’s brand has an emerging market flavour, and operates through 14 franchised kiosks and converted spaza shops, as well as via 27 Total fuel station Bonjour outlet stores.
Gold Brands said there were plans to roll out 115 outlets over the next 24 months — noting that Mama Chaka’s had recently been listed in Fresh Stop stores.
Last week, Gold Brands reported maiden results with revenue 14% higher at R235.5m, and gross profit jumping 38% to R61m for the year ending February.
Headline earnings came in at 10.25c per share.