“The acquisition follows Taste’s stated strategy of acquiring businesses that have significant overlap with the group’s existing vertical integration capacity in both manufacturing and distribution,” the group said in a statement.
The group added that its aim to have brands targeting consumers in the LSM 4-6 category would also be complementary to the group’s The Fish & Chip Co. business, which currently has over 300 stores.
[DATA TAS:Taste Holdings] is a South African-based management group that invests primarily in restaurant and retail franchises. Some of the group’s brands include Scooters Pizza, NWJ Jewellery, The Fish and Chip Co and St Elmo’s Woodfried Pizza.
Zebro’s Chicken is a 15-year old brand with a primary base in the Western and Eastern Cape, with 40 outlets so far.
According to the statement, Zebro’s is unique to the South African chicken market in that it prepares its products over an open fire similar to a South African ‘braai’, and has a unique flavour profile in the chicken market.
“[Zebro’s] trading format is similar to other existing Taste food brands in that it has the lowest set-up costs in the chicken segment, which targets similar franchisees to those of the existing The Fish & Chip Co. business,” the group explained.
“Its focused menu results in easy to manage operations which promote multiple- and company store ownership; and its site criteria are similar to those of The Fish & Chip Co. brand, allowing leverage into the existing national property infrastructure of the Taste group.”
Taste will purchase Zebro’s for the purchase price of 17 million rand and will be discharged by a combination of cash and vendor placed Taste shares.