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FAMOUS BRANDS LIMITED - Famous Brands Spices Up Offering with Acquisition of Salsa Mexican Grill

Release Date: 16/05/2016 07:05
Code(s): FBR     PDF:  
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Famous Brands Spices Up Offering with Acquisition of Salsa Mexican Grill

FAMOUS BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/004875/06)
JSE Share code: FBR
ISIN code: ZAE000053328
(“Famous Brands” or “the company”)

FAMOUS BRANDS SPICES UP OFFERING WITH ACQUISITION OF
SALSA MEXICAN GRILL

Johannesburg; Monday, 16 May, 2016: Famous Brands has acquired
a 51% stake in recently launched Salsa Mexican Grill, a Fast-
Casual dining concept centered on traditional Mexican food and
beverages.   The brand is currently represented by its maiden
restaurant, opened in June 2015, in Fourways, Gauteng.     Two
further franchised outlets are scheduled to open during the
course of 2016.

The purchase consideration falls below the threshold of a
categorised transaction in terms of the Listings Requirements
of the JSE Limited and will be settled from cash reserves. All
suspensive conditions have been fulfilled and the effective date
of the transaction is 1 June 2016.

Darren Hele, Famous Brands’ CEO says, “This joint venture
furthers our stated strategy to compete more vigorously in the
Fast-Casual dining category, one of the quickest growing
segments in the restaurant industry over the last decade.”

“There are a number of compelling motives surrounding this
acquisition,” Hele notes.

“Within the South African context, our research revealed that a
gap exists in the Fast-Casual Mexican cuisine space. Although
we explored the possibility of establishing a start-up concept
of our own, by acquiring a controlling stake in Salsa Mexican
Grill we gained significant strategic advantage given the
brand’s first-to-market head-start and best-in-class offering,”
he comments.

“Furthermore, it is well known that local consumers enjoy spicy
flavours and are increasingly willing to try new varieties of
modern, authentic cuisine.” Hele adds, “Globally, Fast-Casual
Mexican concepts are experiencing double-digit growth and we
anticipate that Salsa Mexican Grill will quickly mirror that
trend.”

Hele notes, “In the USA, consumption of Mexican food is
increasing at a faster rate than any other segment of the
restaurant industry and is the third most popular menu type at
approximately 8% of the total restaurant landscape*. In the UK,
the number of Mexican restaurants has risen by 71% in the last
year.” **

Salsa Mexican Grill is the brainchild of co-founders George
Nicolopoulos and Symeon Yiallouris; the business is owned by the
pair, George’s brother Thanasi Nicolopoulos, and two other co-
partners.

Operating partner, George Nicolopoulos, says, “Our family lived
in the USA for almost a year, during which time our love for
Mexican food was born. Subsequently, the Salsa Mexican Grill
concept culminated from extensive research conducted in the
Mexican food category in both the USA and UK.”

He elaborates, “The brand is based on a contemporary
interpretation of a traditional Mexican restaurant. We strive
to create an atmosphere that is authentic and epitomises Mexican
entertaining – which is festive, welcoming and homely.      This
ambience is echoed in our décor and food and the service offered
by our highly trained staff.”

Nicolopoulos comments, “The Salsa Mexican Grill concept appeals
to a wide range of diners: families out for a quick mid-week
meal, business colleagues engaging in a relaxed environment, and
party-goers    looking    for   a    memorable    night    out.”
“Significantly,” he adds, “we also enjoy a very favourable
response to our wholesome meal options from customers seeking
healthy dining offerings.”

In terms of trading performance, Nicolopoulos says, “To date the
restaurant has exceeded our expectations. In the short space
of ten months we have achieved a loyal following of customers.”

He notes, “Our immediate goal is to open more restaurants to
keep pace with the rapidly growing demand from new customers,
and thanks to our partnership with Famous Brands, we will have
the opportunity to fast-track those ambitions. Initially our
focus will be on building the brand in and around the Gauteng
region; with the Group’s expertise and support we plan to grow
a presence relatively quickly.”

The joint venture business will retain the expertise of Salsa
Mexican Grill’s existing team, which will be headed up by George
Nicolopoulos, supported by his four co-partners and Famous
Brands’ management.
Hele concludes, “The expansion potential for the Salsa Mexican
Grill brand is substantial. In general, the market for Fast-
Casual offerings is far less saturated than other segments in
the industry, and provides more numerous franchise opportunities
for entrepreneurs. In this light, we anticipate strong demand
from franchisees and landlords alike, and look forward to
growing the brand’s national footprint over time.”

*   Source: http://www.chd-expert.com : The Mexican Restaurant     Industry
Landscape: A Popular Choice for Cinco de Mayo and all year long

**    Source:http://www.theguardian.com/lifeandstyle/2015/apr/28/burritos-
britain-mexican-food-growth


For further information:
Darren Hele                               Frederic Cornet
Famous Brands                             Instinctif
Telephone: 011 651 5812                   083 307 8286

Midrand
16 May 2016

Sponsor
The Standard Bank of South Africa Limited

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