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Taste Holdings, the AltX-listed restaurant company, was evaluating opportunities outside the country to expand its Scooters Pizza brand, but nothing had been finalised, chief executive Carlo Gonzaga said yesterday.

May 7, 2008

By SLINDILE KHANYILE

Durban – Taste Holdings, the AltX-listed restaurant company, was evaluating opportunities outside the country to expand its Scooters Pizza brand, but nothing had been finalised, chief executive Carlo Gonzaga said yesterday.

Previously, Taste has turned down anybody who approached it with the idea of taking any of its brands to another country without even considering the proposal. But Gonzaga said this had changed because the company was strong enough to explore the possibility without jeopardising local operations.

“The problem when you go overseas is that you lose focus,” he said. “But we believe Scooters is well resourced and has a strong leadership which can look at these new opportunities without defocusing on South Africa.” The company had received inquiries from other African countries and the UK.

Taste, which also owns Maxi’s and recently entered the jewellery market with the acquisition of NWJ, competes with the likes of Famous Brands and Spur, which have had a presence beyond South Africa’s borders for years.

Yesterday the company said revenue grew 15 percent to R33.8 million in the year to February. Headline earnings shot up 28 percent to R10 million, while headline earnings a share rose 21 percent to 8.3c.

Gonzaga said organic growth and new outlets had helped the company to grow despite high food inflation and interest rate hikes. “Consumers are hard pressed, but people are still buying convenience. People are buying down into Maxi’s from high-service restaurants. It is not about buying cheap, but getting good value for money.”

The revamping of Maxi’s stores that began in 2006 was starting to pay off. Revamped restaurants and those opened with the new look had performed above expectations. During the year, Taste had opened 26 outlets. It expected to launch at least 16 in the first six months of the new year. The company now has 161 outlets.

Apart from NWJ, it has bought BJ’s restaurants at Caltex forecourts on highways. These will be converted into Maxi’s during the year.

Gonzaga said the new year would continue to be challenging. There would be some casualties in the market, particularly from the independent operators’ side. But Taste would weather the storm.

Taste shares rose 7.27 percent to 59c yesterday.