Business model
Our ability to create aspirational and iconic brands, which continue to be the consumer's choice, is essential to our success. We create sustainable long-term value for our stakeholders by using our inputs in efficient and responsible business practices.
Financial |
Intellectual |
Manufactured |
Human |
Social and relationship |
Natural |
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Capitals
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The Group's sound financial position, cash generative and relatively capital-light business model, and strong relationship with our primary lender provide access to future capital. |
We rely on well-developed capabilities in brand management, franchising and intellectual property development. |
Our physical and digital infrastructure supports efficient operations and provides our franchise partners with a competitive advantage. |
We have a high-performance culture, specialised skills, experienced management and a diverse Board. |
Strong, mutually beneficial relationships with stakeholders protect our reputation and enable us to meet our growth objectives. |
We are on a journey to improve our sustainability practices to reduce our environmental footprint. |
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Capital governance
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Inputs
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Capital Constraints
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Constrained consumer spending and rising costs impact revenue, profitability and our margins, while elevated interest rates have made using debt more expensive. Read more here. |
A fiercely competitive landscape means that competitors are willing to cut prices to attract consumers. This demands an ongoing investment in our marketing campaigns, value offerings, loyalty programmes and consumer experience. |
Imported equipment and international technologies are expensive due to the weak Rand. Consumer-facing technology investments are expensive, and selecting the right platforms, partners, and software is challenging. |
Attracting and retaining skills, including brand management, marketing and franchising skills is expected to remain difficult in the short, medium and long term. Read more here. 1. The increase in headcount is due to due to the intake of learners, including interns, as part of the YES Programme. |
Our social context and the business environment for franchise partners are constrained by high unemployment, inequality and social unrest. Read more here. |
Natural capital resources, including water, are constrained. Our Gauteng and Eastern Cape operations face regular water shortages. Climate change makes some commodities scarcer and more costly. Read more here. |
Business activities
THE BACKEND OF OUR BUSINESS SUPPORTS THE FRONT END
Supply Chain
We leverage our professional procurement capability and buying power to secure the best possible prices for goods and services. Our mature Logistics operations distribute ingredients and manufactured products throughout South Africa and across our borders.
Head office
Our head office provides IT services across the Group.
Outcomes
Financial
Through disciplined capital allocation, we aim to unlock long-term value across the business and deliver returns for our shareholders.
- •R8 283 million in revenue (2024: R8 024 million)
- •520 cents per share HEPS (2024: 465 cents per share)
- •345 cents per share in dividends (2024: 302 cents per share)
Intellectual
We developed our brands with franchise partners. This includes investing in upfront and ongoing training for franchise partners and their employees, ensuring that all stores consistently deliver on their brand promise.
- •21 (2024: 28) brand awards won
- •R346 million (2024: R351 million) value of our trademarks, patents and brands
- •941 133 (2024: 761 208) consumers participating in our loyalty programmes
Manufactured
Our Supply Chain provided high-quality, competitive products to our franchise partners that resulted in investing in technology to enhance our consumer experience and increase our infrastructure and cyber resilience.
- •153 new restaurants opened (2024: 137). Most of these restaurants are franchised
- •289 restaurants revamped (2024: 233)
- •Capital expenditure of R214 million
- •100% (2024: 100%) of our plants were certified through the Food Safety System Certification (FSSC) 22000 or Food Standards Agency
Human
Our business model relies on having the right people with the right skills in the right jobs to achieve our core beliefs create a common purpose to nurture our franchise partners.
- •Net promoter score (NPS) of 14.1 (2024: 2.25)
- •14.6% (2024: 1.81%) average employee turnover across our Group
- •67 (2024: 71) lost time injuries and zero fatalities (2024: zero)
Social and relationship
We have mutually beneficial relationships with franchise partners. We maintain strong relationships with our non-controlling shareholders, associates, regulators and communities.
- •R1 million (2024: R1.6 million) in food-lending relief to SA franchise partners
- •Level 1 B-BEE contributor status (2024: Level 2)
Natural
We have reduced our annual plastic usage by 110.7 tonnes per year by implementing an environmentally friendly packaging. This year we eliminated single-use plastic across our restaurant network.
- •R0.3million (2024: R1.8 million) invested in solar installations
- •604 tonnes (2024: 611 tonnes) of cardboard and paper recycled
- •48.2 tonnes (2024: 144 tonnes) of plastic recycled
- •852.85 tonnes of paper, metal and glass waste material recycled
- •No food waste sent to landfill (2024: Nil)