Famous Brands takes 49% stake in Nigeria’s Mr Bigg’s


Famous Brands CE Kevin Hedderwick. Picture: Hotelandrestaurant

FAST-food franchise group Famours Brands has bought 49% of Nigerian chain Mr Bigg’s, giving the South African group its first direct stake in a market where it sees significant potential for growth.

Famous Brands CEO Kevin Hedderwick said the deal "catapults (the group) to a completely different level" in Nigeria, where it has been trading for 11 years through master license and franchise agreements.

Famous Brands is buying 49% of UAC Restaurants, the wholly owned subsidiary of diversified conglomerate UAC of Nigeria that houses Mr Bigg’s.

Mr Bigg’s is the largest food franchise brand in Africa, north of South Africa.

UAC Restaurants has 165 franchised restaurants across Nigeria — 57 of them in Lagos and 14 in Abuja. Forty-five percent of the company’s franchised restaurants and 40% of its revenue is concentrated in Nigeria’s three key commercial centres.

UAC Restaurants also has a small logistics and manufacturing component.

Famous Brands said the deal, which takes effect on October 1, would be financed from its reserves. It did not disclose the value of the deal.

The deal "underlines our ambitious and deliberate plans to grow our business outside South Africa", Mr Hedderwick said.

"Trading in Africa is inevitably about being first to market and we believe this transaction represents a significant step-change through which we will further entrench our leadership position within the branded food service industry in Africa."

Mr Hedderwick said Mr Bigg’s had an extensive on-the-ground presence and huge loyal customer base, demonstrated by the 100,000 consumers who visit the brand’s restaurants daily.

Mr Bigg’s quick-service restaurants are at high foot-fall sites. It sells pastries, snacks, burgers and hot meals, with about 25,000 pieces of chicken sold daily.

"Our immediate goal is to bed down this joint venture and optimise on the evident success of the existing operation and its enormous potential within the Nigerian market," Mr Hedderwick said.

Famous Brands’ other brands include Steers, Wimpy, Debonairs Pizza, Mugg & Bean, FishAways, Milky Lane, Juicy Lucy, O’Hagan’s, Keg, Europa and Fego Caffe.

Mr Hedderwick said Mr Bigg’s had an
extensive on-the-ground presence and huge
loyal customer base, demonstrated by the
100,000 consumers who visit the brand’s
restaurants daily

idupaul: Like joke like joke these south africans would soon own 60percent equity in the Federal Govt of Nigeria..When is a Nigerian firm going to takeover even a small bakery in capetown huh?

al-qaeda:

Bros unfortunately nigerians are only good at running down businesses and countries, especially a certain tribe in 9ja.

DICKtator: At a period that competition has overidden the Biggs brand and junk foods are becoming less attractive, that is when infamous brand are coming on board?

well, that is entrepreneurship/capitalism for y'all

mugu must pay

There is always a ready/available market!!!!

enigmang:
Anyhow you look at it.. Mr Bigss have a name sold in naija... All 'famous brand' need to do is rebrand ... Change logo and all.. It's easier to access the chains of restaurants Biggs already have than to start from the scratch building a name..

These are great entrepreneurs .. Trust me they no what they are doing...

idupaul: Like joke like joke these south africans would soon own 60percent equity in the Federal Govt of Nigeria..When is a Nigerian firm going to takeover even a small bakery in capetown huh?