Stakeholder management
Our stakeholder management approach aligns with our core beliefs of humility and integrity. We listen to understand and respond to our stakeholders' needs, concerns and expectations.
We recognise that our stakeholders can impact the Group's ability to create and preserve value, and we strive to understand and respond to their needs and expectations. Our stakeholder engagement approach relies on the management principles of positive partnerships, consultation and teamwork.
Stakeholder engagement approach
The Group's stakeholder engagement strategy guides interactions with stakeholders. Our engagement strategies are based on the degree to which our stakeholder relationships and contribution influence the Group's strategy execution.
We use the following criteria to prioritise the relative importance of our wide range of stakeholders:
- Our dependence on the stakeholder's support to achieve our strategic goals.
- The stakeholder's influence on our performance.
- The significance of risks and opportunities linking the stakeholder to the Group.
- The risks we face if we do not engage constructively with the stakeholder.
Our Stakeholder Management Framework
Functional discipline representatives interact with stakeholders and monitor stakeholder engagement. Important issues and concerns are escalated to Exco.
Exco members are allocated responsibility for overseeing different stakeholder groups, and accountability per stakeholder group is typically shared across more than one Exco member.
The Social and Ethics Working Group supports the Social and Ethics Committee on an executive level to ensure effective stakeholder management within Famous Brands. The Working Group regularly reports to the Social and Ethics Committee.
Certain Board committees share the responsibility for overseeing stakeholder engagement. The Social and Ethics Committee is primarily responsible for overseeing stakeholder management, and in particular interactions with our communities, employees, consumers and regulators. The Audit and Risk Committee provides guidance on engagement with the JSE and SARS. The Investment Committee provides guidance on engagement with funding institutions, shareholders and investors. The Remuneration Committee interacts with shareholders and employees regarding remuneration decisions.
When required, the Board is notified of major concerns and opportunities to improve stakeholder communications. Board members may also directly engage with stakeholders on occasion.
HIGH POWER,
LOW INTEREST
HIGH INTEREST
Stakeholders have a great deal of influence on the Group, but have little interest in it. We aim to keep them satisfied.
LOW POWER,
LOW INTEREST
HIGH INTEREST
Stakeholders have little influence on the Group and no interest in its activities.
Stakeholders have little influence but are interested in the Group. We consult with them and keep them adequately informed.
HIGH POWER, HIGH INTEREST
Stakeholders have a great deal of influence and significant interest in the Group. We want to fully engage with and satisfy these stakeholders.
Stakeholder relationship quality assessment
We follow an internal assessment of our stakeholder relationships and have the following three categories:
Level of influence on our decisions:
Low
Medium
High
Shareholders, market analysts and prospective investors
Why we engage
Shareholders and potential investors provide financial capital for our growth while market analysts provide guidance on valuation and prospects. We communicate our investment proposition clearly and deliver on our Group strategy. Management has extensive industry experience and is guided by a highly competent Board.
How we engage
- • Annual and interim results presentations.
- • One-on-one engagements.
- • SENS announcements.
- • AGM.
Their needs and expectations
This stakeholder group seeks reassurance that Famous Brands offers sustainable growth. They are interested in:
- • Prudent capital allocation and sustainable financial performance, and despite low economic growth, the financial health of franchise partners.
- • An appropriate and well-considered remuneration structure.
- • Strong corporate governance and ethical and competent leadership.
How we measure relationship quality
- • Investor and analyst interest and feedback.
- • AGM voting results.
Funding institutions
Why we engage
Funding institutions provide financial capital for growth and enable balance sheet support. They seek a mutually beneficial relationship where their funding supports our growth plans, which build Famous Brands into a bigger and better customer.
We have long-term relationships with our bankers. We preserved our track record of meeting our funding obligations and complying with covenants. We proactively manage our debt maturity profile.
How we engage
- • One-on-one engagements.
- • Digital communications.
Their needs and expectations
Funding institutions expect:
- • Famous Brands to apply responsible capital management.
- • Timely payment of interest and capital.
- • Compliance with debt covenants.
How we measure relationship quality
- • Ongoing feedback.
- • Funding terms offered.
Franchise partners
Why we engage
Since our franchise partners are our principal revenue source and represent our brands, they are critical to our business. We regularly consult them, provide ongoing business support, and enhance our brands.
We see our partnerships as long-term engagements that require consistent attention, and our franchise partners’ opinions and contributions are welcome. Our dedicated operations teams ensure that they receive support to run a successful business. Our Supply Chain operations focus on consistently and promptly supplying highquality products.
We are committed to improving our interaction with them to allow us to take advantage of the exceptional and respected insights they provide.
How we engage
- • NFFs.
- • Annual conferences.
- • One-on-one engagement with franchise managers.
- • Email communications and newsletters.
- • Franchise partner surveys.
Their needs and expectations
Franchise partners want a franchisor who recognises their needs and is committed to the relationship. They expect:
- • Return on investment.
- • Iconic brands, quality products and focused marketing spend.
- • Efficient and effective Supply Chain.
- • Sound input when selecting suitable locations for their restaurants.
- • Regular business management support.
How we measure relationship quality
- • Franchise partner retention statistics.
- • Growth of franchise partners with multiple restaurants.
- • Franchise partner survey results.
HOW WE SUPPORT FRANCHISE PARTNERS
Famous Brands employs full business format franchising, where the franchise partners use the franchisor’s whole business concept, including the name, trademarks, copyright, expertise, and other intellectual property. We have several years of experience establishing strong brands and have well-developed franchise processes.
Franchise partner recruitment
We regularly receive franchise partner applications, largely through referrals from current franchise partners, landlords and our extended network. Potential franchise partners are drawn to our brands, long track record, and reputation for robust and ethical franchise network management. New sites are usually offered to existing franchise partners who seek to create a multi-franchise network.
We recommend that applicants interact with a minimum of three existing franchise partners to understand the brand and what is required to run a restaurant. Our franchise disclosure document has all the contact details of existing franchise holders for that brand.
While evaluating potential franchise partners, we look for people management skills, organisational ability, and financial and business management knowledge. Famous Brands completes criminal and credit checks on all new applicants. Franchise partners must have an entrepreneurial mindset but also be content to operate within the franchise system. We seek franchise partners who are owner-operators and not simply investors. While most potential franchise partners require bank funding, they need sufficient unencumbered cash to manage their monthly repayments and cover working capital requirements.
Lease negotiation
The correct site, floor space and favourable rental terms are all essential to ensure a business’s initial and ongoing success. We provide support for site selection, negotiating and managing franchise partner leases, key landlord relationship management and rental benchmarking.
Since the listing, the business transitioned from being a family-owned company to operating in the highly regulated listed environment. Over time, the Group's governance structures matured, and new risk management disciplines were introduced. Today, the majority of our Board comprises independent non-executive directors.
Our growth story would not be possible without the commitment of our franchise partners. We have 1 055 franchise partners who have journeyed with us for over 30 years, with our longest tenure franchise partner joining us in 1973. Several of our franchise partners have developed multi-brand and multi-restaurant networks, benefiting from economies of scale and building generational wealth.
Developing a site
Using graphic information systems, we determine whether a site is viable. This technology gives us demographic data for an area, including population, age brackets and income, while providing economic activity, competitor activity and transport flows into the area. This allows us to evaluate whether the site is over or under-traded and has the consumer numbers to support the business case.
We support franchise partners by managing all new restaurant fit-outs. This ensures that the look and feel of all new restaurants meet our rigorous requirements. We have precise equipment requirements and work with the franchise partner to choose and manage equipment suppliers and contractors. Our longstanding industry relationships allow us to negotiate the best pricing for franchise partners. Restaurants do not open until Famous Brands signs off on the project.
We open a Company-owned restaurant at a site that meets our criteria, but we cannot find a suitable franchise partner and may sell it when an appropriate applicant is found.
Franchise documentation
A franchise partner applicant is given a disclosure document to allow them to evaluate the franchise business case. This document is only provided once they have signed a non-disclosure agreement. It contains extensive information about the franchisor, financial projections, full costs and fee breakdown.
Franchise partners sign a franchise agreement when joining a franchise. This legal document outlines the terms and conditions that apply between the franchise partner and the franchisor. Our franchise information system is a repository for legal documents, including franchise and lease agreements. The typical franchise agreement runs for five years, after which it is either renewed or lapses.
Franchise partners receive access to an online operations manual that includes information on our brand, operational standards and recipes.
Onboarding
Our comprehensive franchise partner onboarding process usually takes 14 weeks. It includes training the franchise partners and their employees and providing support when selecting and interviewing new recruits.
For Leading Brands, franchise partners have access to an online training platform with modules on operating the different brands. We also offer classroom training and practical in-store training, both at the new restaurant and at other restaurants. Before a restaurant opens, we host a soft opening event for friends and family to allow the franchise partner to test the systems.
Engagement
Franchise partners are paid a visit by their franchise manager at least once per month. During this visit, the franchise manager conducts an operational audit and consults with the franchise partner on the business’s health. The franchise manager also discusses proposed menu promotions and incentives offered to franchise partners who achieve their targets.
Franchise managers support between 20 and 25 franchise outlets. Franchise partners can escalate their concerns to an operations manager or regional manager. Franchise partners receive a monthly newsletter with details of upcoming promotions and industry topics. Leading Brands franchise partners can access an online portal for material for local marketing activities. There are National Franchise Forums for each brand, which are consultative forums where franchise partners provide input. Through regional roadshows, Famous Brands shares its plans for the year ahead.
Margin support
Franchise partners benefit from our vertically integrated Supply Chain. Famous Brands sources products, negotiates pricing and ensures that products meet our standards. We are acutely aware of keeping our price increases low and stable, not passing through frequent increases. Price certainty assists franchise partners with their planning. Product prices to franchise partners are the same, regardless of their proximity to our distribution centres.
Online reputation management
We use a leading platform to monitor our online reputation. This consultancy tracks all reviews across our brands on several platforms, including Google, TripAdvisor and Facebook. They assist our brand managers in ensuring that our restaurants are visible on these platforms and that all restaurant details are updated.
We manage social media activity for all brands for our franchise partners. Franchise partners have social media pages linked to our brand’s main page, allowing for localised content, with national support. We have social media policies in place to guide franchise partners appropriately.
Consumers and prospective consumers
Why we engage
Our consumers’ continued support and trust are essential to our ongoing sustainability. We maintain and increase market share by meeting consumer demands and leading in our chosen categories. We value and act on consumer feedback. Our brands must remain relevant and accessible and offer value. We improve the consumer experience through innovation, flawless execution and constant improvement. We maintain our standards through:
- • Innovation to keep up with developing trends.
- • Investment in consumer-facing technology.
- • The rollout of loyalty programmes.
- • Prioritising food quality and safety across the Supply Chain.
- • An ongoing restaurant refurbishment programme.
How we engage
- • One-on-one engagement at restaurants.
- • Advertising and public relations activities across all media types.
- • Call centres.
- • Consumer complaint channels.
- • Brand apps and loyalty programmes.
- • Regular restaurant reviews, audits and mystery shopping to guarantee our high standards are maintained.
Their needs and expectations
Consumers trust our brands to deliver:
- • Strong value offerings.
- • Location accessibility and convenience.
- • Positive total experience with good service and hygiene standards.
- • Menu innovation and variety.
How we measure relationship quality
- • Number of consumer complaints.
- • Restaurant turnover growth.
- • Online reviews and ratings.
Civil society and community
Why we engage
Supporting the communities where we operate is a key component of brand building for our Leading Brands, who run programmes to support longstanding CSI partners. In addition, our franchise partners also support the communities where they operate, both in South Africa and beyond. In 2025, we contributed R19.3 million (2024: R17.2 million) to CSI programmes.
Our environmental policy outlines our commitment to responsible environmental practices. It identifies critical focus areas and objectives regarding reducing our environmental impact and contributing to a more sustainable operating environment.
How we engage
- • CSI activations.
- • Public relations activities.
Their needs and expectations
Civil society and communities expect Famous Brands to:
- • Provide sustained, meaningful support for our CSI programmes.
- • Operate in a way that reduces our environmental footprint.
- • Treat our consumers, employees, suppliers and communities responsibly.
How we measure relationship quality
- • Feedback from CSI partners.
- • Success in fundraising for CSI initiatives.
Suppliers and business partners
Why we engage
Suppliers and business partners support Famous Brands in our commitment to meeting our obligations to franchise partners when they supply important products and services.
Our contractual arrangements enable quality and food safety adherence and transparent, robust relationships with suppliers. B-BBEE status and compliance are considered when selecting suppliers or business partners. Frequent interaction between our procurement and planning teams with suppliers ensures successful partnerships. B-BBEE compliant suppliers are eligible to participate in our annual supplier awards.
How we engage
- • One-on-one engagement.
- • Email communications.
- • Annual supplier awards.
- • Supplier inspections and audits.
- • Supplier questionnaires.
Their needs and expectations
Many of our business partners are crucial contributors to the Group’s strategy implementation and expect:
- • Timely payment.
- • Fair treatment.
- • A long-term, mutually rewarding relationship.
- • Opportunities to grow business opportunities with Famous Brands.
How we measure relationship quality
- • Service level delivery (SLA) levels met or exceeded.
Employees
Why we engage
We value our people, and our goal is to create a safe, harmonious and productive work environment. Employees expect Famous Brand to acknowledge their contributions and invest in their growth and development. They expect their leaders and managers to demonstrate ethical and competent leadership.
Our employees are suitably remunerated, incentivised and developed. We support the principles of transformation in South Africa, and our transformation policy and strategies aim to uplift historically disadvantaged individuals. We are committed to creating a culture of learning.
How we engage
- • One-on-one engagement.
- • Group-wide meetings and presentations.
- • Email communications.
- • Annual performance discussions.
Their needs and expectations
We offer our employees:
- • Fair remuneration and recognition.
- • Equal opportunities and career development.
- • Training and development.
- • Safe working environment and job security.
- • Good corporate governance, ethical and competent leadership.
How we measure relationship quality
- • Voice your View results.
- • Employee retention statistics.
- • Ready now successor scores.
- • Exit interview feedback.
Trade unions
Why we engage
We safeguard employees’ rights, including the rights to non-discrimination and freedom of association. We have recognition agreements with three trade unions, and 26.3% of employees are unionised.
We respect the role of trade unions and engage professionally and cordially to find common ground on all matters. By demonstrating that we are an employer of choice and a good-faith partner, we can continue to enhance our existing mutually respectful relationship.
How we engage
- • Wage agreement negotiations.
- • Meetings.
Their needs and expectations
Trade unions look for the following on behalf of their members:
- • Sustainable earnings and job security.
- • Fair remuneration and recognition.
- • Equal opportunities, training and career development.
- • Safe working environment.
How we measure relationship quality
- • Mutually beneficial wage agreements.
- • Absence of labour unrest.
- • Voice your View results.
Government and regulators
Why we engage
We are a responsible corporate citizen that pays tax, complies with legislation and regulations, and is committed to the principles of transformation. We also support the government’s development agenda through our CSI activities and the responsible use of natural resources.
We have systems in place to monitor any change to legislation, assess the repercussions of these changes and communicate this to relevant stakeholders. Maintaining our B-BBEE status is a critical management priority.
How we engage
- • Annual submissions.
- • Engagement with local municipalities.
- • Industry-level discussions facilitated through the Consumer Goods Council of South Africa (CGCSA) and the Federated Hospitality Association of South Africa (FEDHASA).
- • Applications and reports to SETAs.
- • Requests for information submissions e.g. Competition Commission.
- • Regular guidance and updates on regulations and legislation (JSE Limited).
Their needs and expectations
This stakeholder group seeks:
- • Consistent and growing tax payments.
- • Compliance with legislation.
How we measure relationship quality
- • Absence of fines and penalties.