Despite opening its 2,000th restaurant on Wednesday, Famous Brands CEO Kevin Hedderwick said the company still saw growth potential in the local market and would continue to invest on its home turf.

"The local market is not saturated. There are some areas of SA where we are not densely populated especially in some of our more developed brands like Fishaways," he said.

Famous Brands, whose portfolio includes Steers, Wimpy, Debonairs Pizza, Mugg & Bean and Brazilian Cafe, among others will focus on areas where it currently has poor representation, like KwaZulu-Natal and the Western Cape.

"We still have some blocks to fill," Hedderwick told BusinessLIVE.

The company, like other retailers in the food space, is also making a concerted effort to spread its footprint northwards. "We are doing a lot of work in Mauritius, Zambia and Nigeria," Hedderwick said.
With Africa's consumer spending forecast to hit $1.4 trillion in 2020, market players are hoping to cash in on a burgeoning middle class, whose disposable income is rising rapidly.

Last year, Famous Brands signed a Master Licence agreement with Gaetan Ning, a long-standing partner of the group via his existing Master Licence agreements in Swaziland and Mozambique.

A Master Licensee is granted the right to serve as the group's agent in a territory, where they manage the business on behalf of the group in exchange for a royalty payment for use of the group's intellectual property and business systems.

The company has presence in 16 African countries.

Earlier this month, Yum Brands said it aimed to have 1,200 KFC outlets in Africa by 2015. The company will open around 20 KFC's in Nigeria by year-end.

But as lucrative as the African market is, it comes with significant challenges.

"Trading in Africa is not for sissies. Getting access to the right type of retail footprint or property is difficult. Supply chain is also a major hurdle - sourcing of products in terms of quality, consistency," Hedderwick said.

McDonalds SA, meanwhile plans to double its local 150-store footprint over the next five years. MD Greg Solomon said the group would continue to have a "beady eye" on the rest of Africa, but had no plans for entering other territories just yet.

Source: Business Live (http://www.businesslive.co.za/southafrica/sa_companies/2011/10/12/famous-brands-hits-2000-with-no-signs-of-stopping)