Healthy fast food group announces massive expansion

Herman Redelinghuys, Kauai’s MD: “The new stores will be effective in growing market penetration for us.”

It will launch stores in the Eastern Cape and dramatically expand its footprint in Gauteng and the Free State. The group has already pin-pointed at least 100 suitable sites for more stores in South Africa and has set in motion its global launch.

“We have spent 12 years developing the now recognised brand and cutting its own niche in a new market,” said Herman Redelinghuys, Kauai's MD.

“It is now ready to educate all South Africans about healthy eating by launching in towns throughout the country such as Port Elizabeth and East London. We will also be growing the number of stores in Johannesburg, Pretoria and Bloemfontein.”

Redelinghuys said that the group's five-year plan is based on current positive economic forces such as the annual growth of South Africa's GDP, underpinned by sound macro-economic policies, strong commodity prices and business-consumer confidence.

“The GDP is expected to remain above 4% through 2010, giving us the confidence to expand throughout South Africa. Our target market resides in LSM 8 to 10, so the improvement in living standards of the middle class, growing at 50% per annum, is in line with our newly-formulated strategic plan.”

“… The healthy fast-casual segment of the food sector is the fastest growing area, showing double digit growth year on year, double the rate of the traditional quick-serve food segment. There are geographical gaps in South Africa for our stores with the bulk of our stores currently based in the Western Cape. We will now take advantage of the opportunities that exist outside of the Cape. The new stores will be effective in growing market penetration for us. We also see significant opportunity for growth in convenience malls,” said Redelinghuys.

The group forecasts a minimum of 20% growth year on year for the next five years although Redelinghuys cautioned that the plan was dependant on current economic trends continuing. Depending on the initial success of their launch abroad, the company aims to role out another 200 international stores by 2012.

In 2008, the group will focus on growing its dinner trade as market research indicates that most customers perceive Kauai to be a lunch-time venue.

As part of the five-year growth plan, the majority of new stores are ear-marked as franchises. Kauai currently has 74 stores countrywide with a further 14 due to open by June 2008.

For information call (021) 552 0222 or visit http://www.kauai.co.za