{"id":3329,"date":"2022-06-23T12:45:37","date_gmt":"2022-06-23T10:45:37","guid":{"rendered":"https:\/\/famousbrands.co.za\/iar2023\/strategic-intent\/operational-review\/signature-brands\/"},"modified":"2023-06-20T18:20:12","modified_gmt":"2023-06-20T16:20:12","slug":"signature-brands","status":"publish","type":"page","link":"https:\/\/famousbrands.co.za\/iar2023\/strategic-intent\/operational-performance-in-2023\/signature-brands\/","title":{"rendered":"Signature <span>brands<\/span>"},"content":{"rendered":"<p>Our Signature Brands portfolio comprises a range of bespoke Casual Dining offerings. There are 145 Signature Brands restaurants in South Africa and one Zambia-based Turn \u2018n Tender. Except for PAUL<sup>1<\/sup>, a subsidiary, Signature Brands are 100% owned by Famous Brands. The Group operates 9 Company-owned stores within the Signature Brands portfolio. <\/p>\n<table width=\"100%\" class=\"footnote\">\n<tr>\n<td width=\"15px\" valign=\"top\"><sup>1<\/sup><\/td>\n<td>Licensed brand by PAUL International.<\/td>\n<\/tr>\n<\/table>\n<div class=\"ri\">\n  <img src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p71-3.png\" alt=\"\">\n<\/div>\n<p>Signature Brands has segmented its portfolio into the following three categories:<\/p>\n<h4>Fun Dining <\/h4>\n<div class=\"brands-holder\">\n<div class=\"brands-text mythos bs\">\n<p><strong>Mythos<\/strong> is a contemporary Greek restaurant with a traditional spirit, serving well-loved dishes and modern cuisine in a stylish Mediterranean setting. The authentic dining experience is infused with the customary Greek passion for life.<\/p>\n<p>\t\t <img class=\"brands-holder-image\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p72-1.png\" alt=\"\">\n\t <\/div>\n<div class=\"brands-logo\">\n\t\t <img class=\"center-block\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p72-2.png\" alt=\"\">\n\t <\/div>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<div class=\"brands-holder\">\n<div class=\"brands-text lupa bs\">\n<p>With a strong Roman influence, <strong>LUPA Osteria<\/strong> offers modern yet traditional neighbourhood Italian food in a warm, welcoming environment. From our pasta and sauces to our pizza bases, everything is made from scratch by our talented chefs.<\/p>\n<p>\t\t <img class=\"brands-holder-image\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p72-3.png\" alt=\"\">\n\t <\/div>\n<div class=\"brands-logo\">\n\t\t <img class=\"center-block\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p72-4.png\" alt=\"\">\n\t <\/div>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<div class=\"brands-holder\">\n<div class=\"brands-text turn bs\">\n<p>In 1977, four brothers with a love for the finest steak opened their first <strong>Turn \u2018n Tender<\/strong> restaurant, a traditional South African steakhouse. Decades later, the brand has become a destination for discerning lovers of steak, ribs, burgers and fine wine in a contemporary setting.<\/p>\n<p>\t\t <img class=\"brands-holder-image\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p72-5.png\" alt=\"\">\n\t <\/div>\n<div class=\"brands-logo\">\n\t\t <img class=\"center-block\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p72-6.png\" alt=\"\">\n\t <\/div>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<div class=\"brands-holder\">\n<div class=\"brands-text salsa bs\">\n<p><strong>SALSA<\/strong> serves authentic Mexican food prepared traditionally, with an unconventional twist. The cuisine is complemented by craft tequilas, beers and a dining experience that epitomises vibrant and welcoming Mexican entertainment.<\/p>\n<p>\t\t <img class=\"brands-holder-image\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p72-7.png\" alt=\"\">\n\t <\/div>\n<div class=\"brands-logo\">\n\t\t <img class=\"center-block\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p72-8.png\" alt=\"\">\n\t <\/div>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<div class=\"brands-holder last\">\n<div class=\"brands-text lexi bs\">\n<p><strong>Lexi\u2019s Healthy Eatery<\/strong> is a mostly plant-based, whole-food restaurant brand (the brand has chicken and free range eggs on the menu). The brand strives for the most sustainable, conscious and nutritious eating. This includes limiting the use of plastic, sourcing locally and ethically and promoting delicious plant-based options.<\/p>\n<p>\t\t <img class=\"brands-holder-image dbl\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p72-9.png\" alt=\"\">\n\t <\/div>\n<div class=\"brands-logo \">\n\t\t <img class=\"center-block\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p72-10.png\" alt=\"\">\n\t <\/div>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<h4>Captive Markets <\/h4>\n<div class=\"brands-holder\">\n<div class=\"brands-text vovo bs\">\n<p><strong>Vovo Telo<\/strong> is a specialist artisan bakery synonymous with excellence in craft baking, mouth-watering breakfasts and lunches and perfectly brewed coffee. The brand uses local artisanal products, supporting producers who share its respect for quality and integrity.<\/p>\n<p>\t\t <img class=\"brands-holder-image\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p73-1.png\" alt=\"\">\n\t <\/div>\n<div class=\"brands-logo dbl\">\n\t\t <img class=\"center-block\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p73-2.png\" alt=\"\">\n\t <\/div>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<div class=\"brands-holder\">\n<div class=\"brands-text fego bs\">\n<p><strong>Fego Caff\u00e9<\/strong> offers caf\u00e9-style dining, delicious light meals, sweet treats and unparalleled coffee. With the finest beans sourced from South America and Africa, the brand is the connoisseur\u2019s choice for an extraordinary coffee experience.<\/p>\n<p>\t\t <img class=\"brands-holder-image\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p73-3.png\" alt=\"\">\n\t <\/div>\n<div class=\"brands-logo\">\n\t\t <img class=\"center-block\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p73-4.png\" alt=\"\">\n\t <\/div>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<div class=\"brands-holder\">\n<div class=\"brands-text coffee bs\">\n<p><strong>Coffee Couture<\/strong> is a specialty coffee shop brand in Mediclinic hospitals nationwide. Coffee Couture\u2019s offering comprises tasty meals complemented by a creative coffee offering. The brand also offers a range of gifts and other convenience retail items.<\/p>\n<p>\t\t <img class=\"brands-holder-image\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p73-5.png\" alt=\"\">\n\t <\/div>\n<div class=\"brands-logo\">\n\t\t <img class=\"center-block\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p73-6.png\" alt=\"\">\n\t <\/div>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<div class=\"brands-holder last\">\n<div class=\"brands-text coffee bs\">\n<p>Our bespoke <strong>NetCaf\u00e9<\/strong> brand was created to cater to the Netcare Group\u2019s hospital staff, patients, and visitors. The brand offering comprises a full sit-down menu, a deli section and a retail convenience outlet. Netcare operates the largest private hospital business in South Africa..<\/p>\n<p>\t\t <img class=\"brands-holder-image\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p73-7.png\" alt=\"\">\n\t <\/div>\n<div class=\"brands-logo dbl\">\n\t\t <img class=\"center-block\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p73-8.png\" alt=\"\">\n\t <\/div>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<h4>Luxury<\/h4>\n<div class=\"brands-holder last\">\n<div class=\"brands-text paul bs\">\n<p>Founded in 1889 in France, <strong>PAUL<sup>1<\/sup><\/strong> is an internationally renowned fifth-generation family-owned artisanal bakery-caf\u00e9 chain. The brand\u2019s traditional French offering is served in trademark chic restaurants, complemented by crafted baked products. Famous Brands holds the licence agreement for PAUL in South Africa.<\/p>\n<p>\t\t <img class=\"brands-holder-image dbl\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p73-9.png\" alt=\"\">\n\t <\/div>\n<div class=\"brands-logo \">\n\t\t <img class=\"center-block\" src=\"https:\/\/famousbrands.co.za\/iar2023\/images\/p73-10.png\" alt=\"\">\n\t <\/div>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<table width=\"100%\" class=\"footnote\">\n<tr>\n<td width=\"15px\" valign=\"top\"><sup>1<\/sup><\/td>\n<td>Licensed brand by PAUL International.<\/td>\n<\/tr>\n<\/table>\n<h4>Trading conditions in 2023<\/h4>\n<p>The sit-down restaurant industry faces macro-economic headwinds, including fuel price increases, food inflation, load shedding and restrained consumer spending. Lifting all COVID-19 restrictions in June 2022 boosted restaurant activity, with consumers returning to restaurants, improved evening trade and strong alcohol sales. As the year progressed, interest rate hikes and fuel price increases began to eat into disposable income and affected restaurant trade. These trading conditions remain unfavourable for attracting new potential franchise partners.<\/p>\n<p>On a positive perspective, many landlords now offer lease terms and conditions more favourable to tenants. In addition, strategic, hard-to-secure restaurant sites have emerged, and Signature Brands capitalised on this. This includes two\u00a0sites at The Victoria and Alfred Waterfront for PAUL and Mythos.<\/p>\n<h4>Performance and focus areas<\/h4>\n<p>Signature Brands showed a strong recovery in sales growth over the past year. Like-for-like sales were up by 29.4%, while system-wide sales were up by 27.6%. Operating margins improved to 4% (2022: -5.3%). <\/p>\n<p>Signature Brands offer streamlined menus to simplify restaurant operations and manage gross profit margins. This has also allowed restaurants to flex their staffing needs down in lower turnover environments. In 2023, we closed 20 restaurants.<\/p>\n<p>In 2022, we announced our intention to develop Quick Service Restaurant formats within the Fun Dining category. This plan was shelved as the market conditions were not right to launch new ventures.<\/p>\n<h5>Fun Dining<\/h5>\n<p>The Fun Dining category enjoyed a strong start to 2023 as consumers returned to restaurants to celebrate special occasions. Weaker post-COVID-19 trading conditions led to nine unplanned restaurant closures, impacting the overall performance of the Fun Dining category.<\/p>\n<p>Famous Brands acquired a 51% shareholding in Lexi\u2019s Healthy Eatery in April 2022. We plan to grow the brand\u2019s footprint while cautiously exploring opportunities to offer more plant-based options in other brands\u2019 menus and our Retail range. The design work was completed for Lexi\u2019s Healthy Eatery central kitchen for small batch manufacturing of plant-based products for restaurants and Retail and the building commenced in September 2022. The new facility opened in March 2023.<\/p>\n<h5>Captive Markets<\/h5>\n<p>In the Captive Markets category, NetCaf\u00e9 and Coffee Couture recovered strongly as hospitals lifted COVID-19-related visitor hour restrictions. Doctor visits and related medical services have resumed to pre-pandemic levels, lifting foot traffic in hospitals.<\/p>\n<p>Vovo Telo restaurants are mostly located in local residential malls. Their strong coffee, breakfast and lunch offerings meant they performed well, almost reaching pre-COVID sales.<\/p>\n<p>Fego Caff\u00e9 continues to underperform. In 2023, we closed three Fego Caff\u00e9 restaurants.<\/p>\n<h5>Luxury<\/h5>\n<p>The PAUL restaurants continue to impress, with sit-down, take away and delivery sales performing well. This is operated through a subsidiary with seasoned restaurant operators. The restaurants have strong day trading attributes and have attracted a regular consumer base. Progress has been made in refining the business model, improving gross margins and achieving the right ratios of salaries to turnover. The brand experienced a few global supply chain delays with materials imported directly from France.<\/p>\n<p>The 6<sup>th<\/sup> PAUL restaurant opened at\u00a0a prime site in the Victoria and Alfred\u00a0Waterfront in May&nbsp;2023.<\/p>\n<h5>Supporting our franchise partners<\/h5>\n<p>Famous Brands continued its COVID-19 support strategy across the Signature Brands portfolio using a sliding scale model.<\/p>\n<p>Significant time was spent supporting our franchise partners to resolve long-standing rental arrears. It remains an ongoing challenge for our franchise partners to settle arrear payments with landlords, negatively impacting cash flow and their ability to re-invest in their restaurants.<\/p>\n<table width=\"100%\" class=\"Strat-awards\">\n<tr>\n<td colspan=\"2\" class=\"awards\">Awards in 2023<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\" width=\"50%\">\n<p><strong>Turn \u2018n Tender<\/strong><\/p>\n<p class=\"num\">3<\/p>\n<p>Best of Joburg \u2013 Best Steakhouse<br \/>\n\t\t\tBest of Mbombela Steakhouse<br \/>\n\t\t\tBest of Ekurhuleni \u2013 Best Steakhouse<\/p>\n<\/td>\n<td valign=\"top\">\n<p><strong>SALSA<\/strong><\/p>\n<p class=\"num\">2<\/p>\n<p>Best of Pretoria \u2013 Best Mexican Restaurant<br \/>\n\t\t\t\tBest of Ekurhuleni \u2013 Best Mexican Restaurant<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><strong>Mythos<\/strong><\/p>\n<p class=\"num\">1<\/p>\n<p>Best of Joburg \u2013 Best Greek Restaurant<\/p>\n<\/td>\n<td valign=\"top\">\n<p><strong>Lexi\u2019s<\/strong><\/p>\n<p class=\"num\">2<\/p>\n<p>Best of Joburg \u2013 Best Vegan Restaurant<br \/>\n\t\t\t\tBest of Ekurhuleni \u2013 Best Vegan Restaurant<\/p>\n<\/td>\n<\/tr>\n<\/table>\n<div class=\"box-warm bs\">\n<h2 class=\"orange\">Focus for 2024<\/h2>\n<p>Our focus areas for 2024 include growing selected brands in South Africa and capitalising on good sites becoming available at attractive rentals. Improving franchise partner profitability and the sustainability of restaurants remains a priority. We will strive to manage double-digit food inflation while keeping menu pricing competitive. <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Our Signature Brands portfolio comprises a range of bespoke Casual Dining offerings. There are 145 Signature Brands restaurants in South Africa and one Zambia-based Turn \u2018n Tender. Except for PAUL1, a subsidiary, Signature Brands are 100% owned by Famous Brands. The Group operates 9 Company-owned stores within the Signature Brands portfolio. 1 Licensed brand by&#8230;  <a href=\"https:\/\/famousbrands.co.za\/iar2023\/strategic-intent\/operational-performance-in-2023\/signature-brands\/\" class=\"more-link\" title=\"Read Signature <span>brands<\/span>&#8220;>Read more &raquo;<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"parent":2917,"menu_order":1,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_links_to":"","_links_to_target":""},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Signature brands - Famous Brands IAR 2023<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Signature brands - Famous Brands IAR 2023\" \/>\n<meta property=\"og:description\" content=\"Our Signature Brands portfolio comprises a range of bespoke Casual Dining offerings. 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