Famous Brands Case Study

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Introduction and Background
Famous Brands Limited is a public company listed on the Johannesburg Stock Exchange in South Africa. The company is Africa's leading quick-service and casual dining restaurant franchisor. George Halamandres, who brought new ideas to South Africa relating to the food industry that he found while travelling in America. He successfully built and operated approximately 100 stores in South Africa, ranging from steak houses and take-away stores. Halamandres was one of the first entrepreneurs to bring "franchising" to South Africa. Together with the stores, Halamandres also operated a sauce factory which supplied sauces to his stores.

Currently Famous Brands board of directors are:
• Panagiotis Halamandaris: Non-executive
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• There’s a requirement for diversification of management skills and these may come at a cost.
• The group management has to ensure the efficient running and profitability of all divisions.

Famous Brands Logistics Aspect
Famous Brands has a route-to market delivery to the franchise network, which means that one truck can deliver too many Famous Brands franchises in one trip.
Famous Brands Logistics in KZN
• Which has a total of 51 distribution staff.
• Doing + - 585 drops per week to all the different Famous Brands franchises.
• The trucks service 332 restaurants in a 6 day cycle.

Famous Brands Retail Aspect
Taking Wimpy and Steers for an example.
Wimpy is comprised of their two sauce products and Steers contains a wide range of products:
• Wimpy Tomato and Mustard sauces.
• Steers has sauces, dressings, marinades and seasoning salt.
The Wimpy and Steers sauces are distributed to all the franchises as well as retail stores such as Spar and Pick ‘n Pay. Wimpy and Steers combined sell in excess of 6 million bottles of sauce per annum just from retail stores. Which is an effective brand building exercise for both franchises. The sauces are placed in stores for customer convenience and
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Famous Brands franchises as well as the Famous Brands Company could set up trade agreements and negotiations with neighbouring countries.
Economic Increasing petrol price. Explore, new and innovative strategies of transportation.
Social Employees within the Famous Brands franchises with HIV / AIDS resulting in high absenteeism and low productivity Famous Brands could introduce an AIDS education and support programmes such as AIDS clinics.
Technological Older Famous Brands franchises computers and systems may be obsolete. Install new advanced computer systems into the older stores.
Legal Achieving BEE status. Employ and train more blacks and allocate them to the different franchises.
Environmental Polluting the environment. Make the packaging of the products from recycled material.
• As long as Famous Brands franchises keep on using the most appropriate criteria, their franchises shall continue to attract buyers.
• Buyers can range from a customer that purchases a meal at a franchise to a potential investor.


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