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About Famous Brands ABOUT OUR INTEGRATED ANNUAL REPORT CONTINUED ABOUT FAMOUS BRANDS Who we are Famous Brands is Africa’s leading branded food services franchisor. The Group’s origins date back to the early 1960s, with the founding of a humble family business comprising one brand, Steers, and a limited supply chain. Today our enterprise consists of an extensive, vertically integrated business model, with trading operations on three continents. In 1994 the holding company listed on the JSE Limited in the Travel and Leisure sector. Global footprint What we do Famous Brands is a branded food services business operating franchised, master license and Company-owned restaurants. Our vertically integrated business model comprises three core pillars: Brands, Manufacturing and Logistics. The Brands portfolio consists of 24 restaurant brands, represented by a network of 2 898 restaurants across SA, the rest of Africa, the Middle East and the UK. The portfolio is segmented into Leading (mainstream) brands and Signature (niche) brands. The Leading brands are further categorised as Quick Service, Fast Casual and Casual Dining. Our integrated supply chain consists of Manufacturing and Logistics operations which support the Brands business in SA and selected markets in the rest of Africa. Our Brands, Manufacturing and Logistics divisions are supported by a range of central services, including shared facilities, human resources (HR) and information technology (IT). The costs of these central services are shared proportionately relative to activity. In addition, a core of corporate services supports the entire organisation. Segment report Business model 3 ABOUT FAMOUS BRANDS CONTINUED Our brands Leading Brands Launched in the 1960s in Debonairs Pizza is a Fishaways is South Africa’s Since the late 1950s, Milky South Africa, Steers is an market-leading Quick leading Quick Service Lane has been a iconic hamburger brand, Service pizza brand that seafood brand, offering household name in South loved across generations owes its popularity to an uncompromisingly fresh Africa, serving deliciously for its legendary 100% unwavering focus on pizza and nutritious seafood- decadent ice cream treats pure flame-grilled burgers, innovation, cutting edge based meals that cater to and desserts. Popularly hand-cut chips, fresh customer-interactive the discerning and known as the ‘Feelgood ingredients and real technology and free health-conscious Specialists’ this brand is a flavour. home delivery, which it consumer. leader in the indulgence pioneered in 1996. category. Since opening in 1996, Mugg & Bean Wimpy is a leading Casual Dining Fego Caffé epitomises café-style dining, restaurants have been synonymous restaurant and family favourite, built on serving delicious light meals and with the spirit of generosity, and the the principle ‘enjoy every moment’. The unsurpassed coffee. With the finest brand’s bottomless coffee, giant muffins brand is renowned for its famous beans sourced from South America and and substantial portion sizes are Wimpy Coffee, all-day breakfasts, Africa, the brand is the connoisseur’s legendary. Mugg & Bean is also burgers and grills, complemented by a choice for an extraordinary coffee accessible to customers through a wide selection of shakes and desserts. experience. range of convenient formats including On The Move, OTM Limited Service and OTM Express. Other GBK is the Group’s company-owned premium burger offering in the With a heritage dating back to the 1960s, Mr Bigg’s is a popular UK. The brand’s core beliefs are based on farm-to-fork provenance, restaurant chain based in Nigeria. Catering for takeaways and finest quality and innovation centred on pioneering handcrafted sit-down dining, this brand offers a selection of traditional and ‘burger comfort’. international menu items. Aqua Monte is the Group’s bottled Baltimore is the Group’s bespoke ice Trufruit is the Group’s premium-quality water brand, stocked by our franchise cream brand, stocked by our franchise fruit juice brand, stocked by our restaurants and a selection of restaurants and other third-party food franchise restaurants, the food services redistributors and cinemas. The services customers. catering market and select cinema carefully sourced bottled spring water is outlets. available in still and sparkling variants. 4 FAMOUS BRANDS Integrated Annual Report 2020 ABOUT FAMOUS BRANDS CONTINUED Quick Service restaurants Wholly owned Casual Dining restaurants Joint venture/Associate Fast Casual dining Under license Signature Brands Mythos is a contemporary With a strong Roman In 1977, four brothers with Salsa serves authentic Greek restaurant with a influence, this modern yet a love for the finest steak, Mexican food prepared traditional spirit, serving traditional neighbourhood opened their first Turn ’n traditionally, with a time-honoured dishes and osteria offers authentic Tender restaurant, a modern, inspired twist. modern cuisine in a stylish artisanal Italian food in a traditional South African The cuisine is Mediterranean setting. warm, welcoming steakhouse. Four decades complemented by craft The authentic dining ambience. Homemade later the brand has tequilas and beers and a experience is infused with pasta and wood-fired evolved to become a dining experience the customary Greek pizzas made from the destination for discerning epitomises authentic passion for life. finest ingredients are lovers of steak, ribs, Mexican entertaining – complemented by a wide burgers and fine wine, in a vibrant, welcoming and range of other mouth- contemporary setting. festive. watering meals and alcoholic beverages. Founded in 1889 in France, PAUL is an internationally renowned fifth tashas is a boutique café concept which draws on the best of generation family-owned artisanal bakery-café chain. The brand’s traditional coffee shop heritage, elevating it to new generation authentic French offering, served in its trademark chic restaurants or to chic with its careful blend of authenticity, innovative comfort take away, includes traditionally-crafted baked products and gourmet food, personalised service, and signature design aesthetics, meals. Famous Brands holds the license agreement for PAUL in SA. effortlessly creating memorable dining experiences. Vovo Telo is a specialist artisan bakery, Europa is a delightful fusion of Established in 1965, House of Coffees is a synonymous with excellence in craft neighbourhood Italian trattoria and specialist coffee shop serving a premium baking, mouth-watering breakfasts and contemporary eatery, serving a range coffee offering and sumptuous meals. lunches and perfectly brewed coffee. of modern dishes inspired by Tuscany, The bespoke coffee blends are enjoyed The brand uses local artisanal products, Provence, Barcelona and Corfu. by the brand’s restaurant patrons and supporting producers who share its are also available in leading retailers respect for quality and integrity. nationwide. Coffee Couture is a specialised hospital coffee shop brand, situated in Our bespoke NetCafé brand was created to cater to the Netcare Mediclinic hospitals nationwide. Coffee Couture’s offering comprises Group’s hospital staff, patients and their visitors. The brand tasty meals, complemented by a creative coffee offering; a range of offering comprises a combination of full sit-down menu, a deli gifts and other convenience retail items are also available. section and a retail convenience outlet. Netcare operates the largest private hospital business in South Africa. 5 ABOUT FAMOUS BRANDS CONTINUED Vision and values Our core values Growth Humility Quality Vision To be the leading innovative branded franchised and food services business in SA and selected markets. Integrity Innovation Agility Speed What drives us We are deeply We value our mutually We strive to be the best Our economic engine is passionate about beneficial in the world at unique driven by sustainable innovative branded relationships with our customer experiences like-for-like growth food services solutions franchise partners 6 FAMOUS BRANDS Integrated Annual Report 2020 ABOUT FAMOUS BRANDS CONTINUED Key differentiators and investment case Established market leader Strategic business model • The leading branded food services franchisor in Africa, with • A vertically integrated supply chain underpins the brand exposure to growth markets; network, providing manufacturing, logistics and distribution • a strong trading track record established over 26 years; capabilities to our franchise partners; and underpinned by a high-performance culture; and • the reliable, competitive services afford strategic advantage, • a compelling business proposition for franchise partners and a positioning our franchisees to deliver like-for-like growth. quality solution for customers. Business model About Famous Brands Performance overview Effective capital allocation Sustainable value is generated by ensuring the best return on invested capital across our diverse Brands, Manufacturing and Aspirational brands and exceptional Logistics operations. franchise partners CEO’s report • A strategic best-in-class brand portfolio positioned to appeal to a wide range of consumers across the income and demographic spectrum, and across meal preferences and Supportive financial position value propositions; • A healthy balance sheet; • ambitious, entrepreneurial franchise partners, with a proven • cash-generative operations; track record in competitive trading conditions; • sustainable earnings; and • strong demand for brands from existing and prospective
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