AME
The Group operates in eight countries in the AME markets, including Egypt, Côte d’Ivoire, Ethiopia, Kenya, Kuwait, Nigeria (an associate), Mauritius and the UAE.
|
Start of 2025 |
New stores |
Stores closed |
Revamped/ relocated stores |
End of 2025 |
|
|---|---|---|---|---|---|
| Debonairs Pizza | 37 | 5 | (8) | 2 | 34 |
| Steers | 13 | 1 | (6) | 1 | 8 |
| Mugg & Bean | 11 | 3 | (1) | – | 13 |
| Subtotal | 61 | 9 | (15) | 3 | 55 |
| Mr Bigg’s | 31 | – | (18) | – | 13 |
| Total | 92 | 9 | (33) | 3 | 68 |
| Salient features | 2025 | 2024 |
|---|---|---|
| Segment revenue (%) | 0.7 | 0.7 |
| Operating profit margin (%) | (60.5) | (26.0) |
| Total number of restaurants | 68 | 92 |
| New restaurants opened | 9 | 13 |
| Number of restaurants revamped or converted | 3 | 2 |
| Number of restaurants closed | 33 | 37* |
* High restaurant closures can be attributed to closing operations in Nigeria due to the scaling down of the Mr Biggs brand, as well as the closure of operations in the UAE due to legal challenges.
Trading conditions
Inflation has trended downward in several markets, including Côte d'Ivoire, Kenya, Mauritius and the UAE. However, in Ethiopia and Nigeria, it remains highly elevated. Notably, the Ethiopian Birr and Nigerian Naira depreciated against the USD by 83% and 40.9%, respectively, during the 2024 calendar year.
Several markets experienced political tensions. In Kenya, anti-tax demonstrations were a regular occurrence in Nairobi and Egypt is in conflict with neighbouring Sudan. Nigeria experienced widespread protests fuelled by growing public anger over soaring inflation and worsening economic insecurity.
Nigeria’s persistent inflationary pressures were exacerbated by currency depreciation and food supply disruptions. At year-end, Nigeria’s central bank interest rate was 27.5%, which makes it difficult for business owners to access bank funding.
Performance and focus areas
Revenue increased by 28% to R71 million (2024: R55 million). The operating loss was R43 million (2024: (R14 million)), while the operating loss margin was (60.5%) (2024: (26%)).
Côte d'Ivoire’s economy has proven resilient this year, with GDP growth of around 6%. With the West African CFA Franc pegged to the Euro the exchange rate has been stable, with low inflation experienced throughout the year. The first Debonairs Pizza restaurant in Abidjan has experienced solid sales during its first year and the second site in the capital is scheduled to open in 2026.
In Ethiopia, economic growth improved due to post-Tigray war reconstruction efforts. Our four Debonairs Pizza restaurants continued to achieve double-digit sales growth and maintained strong operating profit margins.
Famous Brands has 10 Company-operated restaurants in Mauritius after we acquired a 51% shareholding of a franchise partner’s business in 2024. We stabilised the business and continue to invest in brand awareness, operational standards and employee training. While inflation steadily declined, employee input costs increased as the Mauritian government introduced two minimum wage increases and now stipulates the payment of a 14th cheque1 to employees in December. The island’s economy has an ongoing hospitality labour shortage, and the lack of delivery drivers is affecting the home delivery channel.
We continued to grow the Mugg & Bean brand in Kenya with the opening of one Mugg & Bean On-The-Move and a second On-The-Move self-service outlet. We now have 11 Mugg and Bean restaurants in Kenya. Our delivery sales for Steers and Debonairs Pizza declined as third-party aggregators cut advertising support for their platforms. We continued to increase our capacity to support own delivery sales.
In Nigeria, UACR focuses on restructuring the business and enhancing operational efficiencies, with the aim of scaling its QSR outlets. The company focused on high-performing locations with 18 Company-owned restaurants (Seven Debonairs Pizza, 11 Mr Biggs). Rising costs and currency volatility disrupted supply chains. This was mitigated through a just-intime inventory management strategy and investing in a diesel management and tracking system. While sales volumes and operating profit margins improved due to enhanced cost management and efficiency measures, financial performance was eroded by inventory shortages, energy and inflationary costs. We closed 18 non-performing Mr Biggs restaurants and one Debonairs Pizza restaurant.
In July 2024, we entered the Egyptian market with a Debonairs Pizza in Cairo, and in September 2024, we opened a second location. In December 2024, we opened a Mugg & Bean in Kuwait City, the capital of the Gulf nation Kuwait.
In Saudi Arabia, the master licensee did not meet its development plan objectives during the initial five-year term of the master licence agreement. When the agreement expired in December 2023, the market reverted to operating as a franchise market, with support from the Famous Brands team in the UAE. In 2025, we were not able to secure a new master licence arrangement, and we exited Saudi Arabia. In July 2024, we closed the Debonairs Pizza restaurant in Jeddah. Saudi Arabia remains a significant market opportunity, and we continue to look for new franchise and licence partners for the Debonairs Pizza, Steers and Mugg & Bean brands.
We experienced legal challenges in UAE with our multi-unit franchise partners. This contributed to the closures of 10 restaurants and significant sales declines experienced across the remaining network. This deterioration is operational in nature and does not reflect brand potential.
Technology
The home delivery channel appeals to consumers, and we continued to make this channel more accessible in 2025. We progressed our strategy of implementing consumer-facing technology projects in AME markets. We launched a centralised call centre and introduced self-service terminals for our QSR brands in Kenya. We also launched an online ordering platform in Egypt.
Focus areas for 2026
UK
Famous Brands operates Wimpy, a Casual Dining Restaurant in the UK.
| Salient features | 2025 | 2024 |
|---|---|---|
| Segment revenue (%) | 2.0 | 2.0 |
| Operating profit margin (%) | 5.4 | 11.4 |
| Total number of restaurants | 61 | 63 |
| New restaurants opened | 1 | 1 |
| Number of restaurants revamped or relocated | 2 | – |
| Number of restaurants closed | 3 | 3 |
Trading conditions
The UK experienced an extremely challenging year due to economic uncertainties. In 2024, GDP grew by 0.9% following 0.4% growth in 2023. Inflation at the beginning of our financial year was at 3.2%, reducing at year-end to 3%. The Bank of England interest rate trended downwards, closing at 4.5% by year-end. The supply chain remained relatively stable throughout the year.
Performance and focus areas
The UK’s revenue decreased 18% to R132 million (2024: R161 million), supported by a slight Rand weakness against the Pound. The operating profit declined to R7 million (2024: R18 million). The operating profit margin for the year was 5.4% (2024: 11.4%).
The ongoing cost-of-living crisis continued to affect consumer confidence and spending patterns, resulting in a decline in retail spending and footfall. There was also a sharp drop-off in home delivery sales. However, in-store sales performed slightly better as consumers replaced deliveries with in-store dining.
The relatively high interest rates continue to dampen franchise partners’ appetite for new restaurant growth or investment in revamps for existing restaurants. We continue to implement energy-efficiency initiatives at restaurants and support franchise partners in securing the best pricing for ingredients.