In their latest joint venture agreement to expand the group’s presence in the casual dining sector, Famous Brands has bought a controlling stake in up-market steakhouse, Turn ‘n Tender.
Turn ‘n Tender was founded in 1977 by four brothers, Mervyn, Steven, Howard and Brian Aaron as a family steakhouse, and re-launched by Brian and business partner Farrel Osher in 2007.
Restaurants are in Parktown North, Illovo, Bryanston and Bassonia, Johannesburg, and in terms of the agreement, Famous Brands will acquire a 51% stake in the trademark and existing four franchise agreements. The effective date of the transaction, pending the successful conclusion of a due-diligence, is 1 May 2013.
Famous Brands intends to fast-track the roll-out of more restaurants, already opening a fifth in Bedfordview in March and increasing the national footprint to 25 restaurants in the next five years.
Kevin Hedderwick, CEO of Famous Brands, says, “For some time now we’ve been exploring investment opportunities in the family dining steakhouse category. Two factors appealed to us: First, this segment has seen strong growth and should continue to do so, and second, we believe there is potential to build a new niche for Turn ‘n Tender within the sector given the discernible gap between the entry-level mass-market offering and the premium upper-end offerings.”
Famous Brands considers itself to be acquisitive by nature, “We don’t look for dominance in a category, we rather go and play in a number of categories,” Hedderwick explains.