Famous Brands targets Kenya growth and Ghana franchise deal

Famous Brands is targeting Kenya and Ghana for its next phase of African expansion, with several Kenyan outlets planned over the next six months and a potential franchise arrangement under negotiation in Ghana. The South African restaurant group is pursuing growth beyond its home market while consumers remain under financial pressure.

Kenya leads the expansion agenda

Chief executive Darren Hele identified Kenya as the market outside South Africa that most excited the group, according to a TimesLIVE report published on 24 October. Famous Brands plans to open several outlets there over the following six months, making Kenya a near-term priority in its African growth plans.

The group operates more than 3,070 restaurants across 21 markets. Its latest expansion push follows its exit from the Middle East and reflects a stated intention to build scale in selected African economies rather than rely solely on its South African base.

The Kenyan plans have a stated timeframe, but the report did not identify the brands or individual locations involved. For South Africa’s franchise community, the development nevertheless provides a clear indication of where one of the country’s largest restaurant groups sees its next opportunities.

Kenya and Ghana are at different stages in that process: the former has planned outlet openings, while the latter remains the subject of negotiations.

Ghana entry depends on a licence agreement

Famous Brands is negotiating a licence agreement that could provide an entry point into Ghana. Hele confirmed that discussions were under way but said the company was not ready to disclose further details.

“We are in the throes of negotiating a licence agreement,” he said.

That distinction matters: Ghana is a prospective expansion market, not a confirmed new opening. No agreement terms, opening schedule or local partner were disclosed in the report. The negotiations should therefore not be read as a completed deal or an invitation for individual franchise applications.

Licensing also features in the group’s expansion beyond Africa. Famous Brands recently opened its second Steers and second Debonairs Pizza outlets in Malaysia through its licensing model.

Those Malaysian openings provide a separate example of the group using licensing to extend its restaurant brands internationally. They do not, however, establish which brands or operating arrangements would form part of a Ghana agreement.

South African brands remain central

The expansion plans come against a difficult trading backdrop at home. Hele said elevated fuel costs and broader affordability challenges continued to put consumers under pressure, and he expected those conditions to persist for at least another six months.

Despite that environment, he identified the group’s established South African brands, particularly Steers, Debonairs Pizza and Fishaways, as a central strength. He also said its franchise model continued to attract operators.

The reported financial performance shows why the geographical growth story requires some caution. Revenue in Leading Brands SA, which includes Wimpy and Steers, increased by 2.5% to R508 million. In the rest of Southern Africa, where the group has operations in 11 countries, revenue declined by 18% to R183 million, while operating profit fell by 78% to R5 million.

Those figures concern different geographical operations from the Kenya and Ghana expansion targets. They nevertheless show that an established cross-border presence does not automatically translate into improving financial performance across every market.

Growth alongside portfolio challenges

Famous Brands is also managing uneven performance within its restaurant portfolio. Its Signature Brands division comprises eight niche brands, including Mythos, Salsa Mexican Grill, Turn ‘n Tender, Vovo Telo and Paul, and remains its weakest-performing segment.

Signature Brands revenue decreased by 8.4% to R95 million, with an operating loss of R9 million. Hele said the challenges were concentrated largely in Paul rather than spread across the whole portfolio, describing Vovo Telo and other brands in the division as solid operations.

Paul also illustrates why operating structures matter. Hele said the chain operated under an international licensing agreement and could not simply be converted to a franchise model. Its company-operated stores and luxury positioning present a different management challenge from the group’s core franchised quick-service brands.

The Kenya and Ghana developments are therefore best understood as targeted growth initiatives, not evidence of uniform expansion or performance across Famous Brands. Planned openings, licence negotiations and existing operations each carry different levels of certainty.

Practical takeaway: Prospective operators should distinguish confirmed openings from negotiations and seek details of the brand, local partner and operating model before assessing any cross-border franchise opportunity.