New takeaway restaurants rolling out accross South Africa
Famous Brands’ latest results show that family-favourite restaurants like Debonairs, Steers, and Mugg & Bean are expanding, while less popular options like Fishaways and Wimpy are declining.
In its latest integrated annual report, Famous Brands provided an overview of its portfolio of 16 brands, which include well-known names like Wimpy, Mugg & Bean, Steers, Mythos, Salsa Mexican Grill, Debonairs Pizza, and Milky Lane.
Famous Brands was founded in the 1960s by George Halamandres and has since grown to become Africa’s largest restaurant franchisor.
Today, the enterprise consists of an extensive portfolio of brands and a vertically integrated business model with trading operations on three continents.
This includes 16 restaurant brands, 2,914 restaurants, and a presence in 18 countries. South Africa is by far the company’s largest market, as 2,552 of its 2,914 restaurants are located there.
In 2012, Famous Brands achieved revenue of R2.1 billion, an operating profit of R413 million, and had 2,042 restaurants.
In its latest results, the company reported revenue of R8.02 billion, an operating profit of R812 million, and 2,914 restaurants.
The company attributes this growth to the strength of its brands, many of which are household names in South Africa.
Famous Brands experienced a difficult period during the COVID-19 pandemic, as lockdown regulations limited people’s movement and ability to go to restaurants.
However, Famous Brands chairman Santie Botha said that, during this time, the company “made the right decisions as a board to ensure the long-term sustainability of the business”.
“During these tough times, I engaged with executive management daily while the board held special board meetings two to three times a week.”
“We entered the pandemic with high levels of debt, which has since been managed to more appropriate levels.”
“It was a time that highlighted the calibre of the Famous Brands people, including the board, who rallied to protect the business and introduced innovations and better processes, many of which remain embedded in the business today.”
The 2024 financial year revealed that the company has recovered from the pandemic, which Botha said was despite the year having brought more headwinds than tailwinds.
She cited a constrained consumer landscape, high inflation, persistent load-shedding and infrastructure failures in critical areas such as water and port maintenance as challenges the company faced.
However, despite these problems, Famous Brands recorded momentum in revenue growth and maintained profitability and cash generation despite the challenging economic conditions.
This growth was primarily driven by the company’s Leading Brands portfolio, which consists of two brands: quick service and casual dining.
Below is an overview of how these brands fared in the 2024 financial year.
Steers – expanded
Steers is one of the most successful quick-service brands in South Africa, with a noteworthy presence in a highly competitive market.
The brand was founded by Famous Brands’ founder, George Halamandres, who had a vision to create a successful family-run business.
The idea for Steers originated while he was on holiday in the United States, where he encountered innovative food industry concepts.
However, the business has evolved into the unique model South Africans know today.
Famous Brands’ latest results show that there are Steers 714 restaurants across 12 markets.
In 2024, the brand saw a net restaurant growth of 13, making it one of Famous Brands’ fastest-growing brands.
Debonairs – expanded
Debonairs Pizza is a market-leading brand that owes its popularity to an ongoing focus on innovation.
It was the first African pizza brand to launch online and mobile ordering, with competitor brands following suit years later.
In addition, from when the brand launched in 1991, it offered free delivery, a first for any South African brand.
In 1996, Debonairs Pizza was acquired by the Steers Group, which would later become Famous Brands.
Today, it is Famous Brands’ fastest-growing leading brand, having added a net 31 restaurants in 2024.
This brought the brand’s restaurant count to 841 restaurants across 16 markets.
Fishaways – declined
Launched by Famous Brands in 1998, Fishaways is one of South Africa’s most popular seafood Quick Service Restaurant brands.
The brand focuses on affordable, fresh and nutritious seafood-based meals that cater to the discerning and health-conscious consumer.
However, the brand is on the decline, with its restaurant network having declined by five in 2024.
This brought the network to 248 restaurants across two markets.
Mugg & Bean – expanded
Mugg & Bean was founded in 1996 after restaurant entrepreneur Ben Filmalter visited Chicago and discovered a small coffee shop known for its generosity.
Inspired by this, Filmalter opened the first Mugg & Bean in 1996 at the V&A Waterfront in Cape Town.
Mugg & Bean was acquired by Famous Brands in 2009 and has become a household name in South Africa.
Famous Brands has been in the process of converting its Fego Caffés to Mugg & Bean restaurants, which has added significantly to the brand’s footprint.
In 2024, Mugg & Bean saw net restaurant growth of 17, 10 of which were conversions from Fego Caffés to Mugg & Bean restaurants.
This brought its footprint to 286 restaurants across 9 markets.
Wimpy – declined
Wimpy was founded in the United States in the 1930s, but reached its success internationally in South Africa and the UK.
In 1954, the first “Wimpy Bar” was established at the Lyons Corner House in Coventry Street, London, UK.
In 1967, the first Wimpy opened in Murchies Passage, Durban, where 1,000 people visited the restaurant on its opening day.
Today, many South Africans may know Wimpy as the restaurant they may find at service stations while on a road trip.
This is because, in the 1980s, Wimpy partnered with Mobil – now Engen – to make sure that a Wimpy pitstop is part of every journey.
Wimpy SA and Wimpy UK were acquired by Famous Brands in 2003 and 2007, respectively.
However, despite its status as a household name, Wimpy saw its restaurant network shrink by 1 location in 2024.
This comes after the brand closed seven restaurants in 2023 as well, although it added five new locations, leading to a net decline of two.
Today, the brand has 544 restaurants across six markets.
Milky Lane – expanded
Milky Lane was launched by Famous Brands founder George Halamandres in 1958.
Milky Lane is South Africa’s original soft-serve quick-service and casual dining ice cream concept and one of the very few brands in this category to have succeeded where others have
failed, including several global players.
In 2024, the brand saw net restaurant growth of five, making it reach 111 restaurants across four markets.
Comments