The approval comes close on the heels of the announcement of Gold Brands R100 million BEE partnership with Circle Food Group, which will control 41.02% of the shares in issue at listing. The balance of the shares will be held by founders Praxia and Stelio Nathanael with the remaining 17.96% being held by the public, which largely includes its suppliers and franchisees. The R25 million cash raised via the BEE transaction and the private placement will immediately be used to fund working capital and expansion.
Gold Brands Investments CEO, Praxia Nathanael, said that the group is looking to expand its brands further into Africa, specifically in Botswana, Zimbabwe, Zambia, Namibia, Swaziland, and Mozambique.
She said that the Centurion-based company, which has a turnover of over R210 million, is also looking for opportunities globally as it is already successfully expanding into Africa and this will expansion will continue on the continent.
Said Praxia: “We have recently expanded our central kitchen and enhanced our refrigeration installation. We run all our own distribution to keep our supply chain costs low, and as we pass the benefits of this cost management on to the franchisees and, ultimately, the consumer, we believe that it is wise to invest in the efficiency of our supply chain.”
As far as logistics is concerned, the company plans on expanding its fleet as well as its production facilities. It could also consider the benefits of a further decentralised distribution centre.
At the date of the commencement of the listing, the authorised share capital of Gold Brands will comprise 1,000,000,000 authorised ordinary shares, of which there will be 110,000,000 issued and listed ordinary shares.
With five strong brands to choose from, managed by Franchising to Africa and manufacturing, production and distribution of products by Gold Brands Food Services, Gold Brands has developed a unique model that has, to date, enhanced its strong growth in the highly competitive food franchising industry, whilst keeping its franchise set-up cost effective and its menu pricing amongst the most affordable on the market.
Said Gold Brands COO, Stelio Nathanael: “The listing adds value to Gold Brands’ proposition to its franchise owner-operators, to our BEE partners and staff as well as for prospective future partners. In addition, with shares publicly traded, this provides a way for the man in the street to access the fast food industry in South Africa and Africa. It is very much aligned to our company mission of empowering and uplifting individuals.”
The company’s policy has been to develop business models that provide all potential franchisees, including those from previously disadvantaged sectors of the economy a business model that they can own and utilise to empower themselves and those around them in their community.
Said Stelio: “Many franchisees have gone on to become multiple franchise owners, either purchasing a second store in the Chesa Nyama chain or co-locating one of the other brands such as 1+1 Pizza or Pitaland, thereby expanding their business interests, employing more people in their community and delivering affordable healthy take-out food.”
