Johannesburg – Recently listed food franchising company, Gold Brands Investments (“GBI”) and owner of Chesa Nyama, the fastest-growing franchise in South Africa, has signed an agreement which will see its favourite braai brand head to the United States. The Area Development Agreement (“ADA”) was concluded with private investors – Red Hornbill (Pty) Ltd and The White Family Partnership – the company said in a cautionary issued today.
The ADA allows for the establishment of Chesa Nyama Holdings USA LLC in the USA, with Gold Brands as a partner in the joint venture. The new US-based company will launch the Chesa Nyama brand in that market and if successful will subsequently franchise the Chesa Nyama brand and concept across the USA.
Says Stelio Nathanael, Chief Operating Officer of Gold Brands Investments: “We have long had a dream of taking Chesa Nyama beyond the borders of Africa. The idea has always been to bring our iconic South African braai culture to America.”
The memorandum of understanding will see Red Hornbill and the White Family funding the set up and establishment costs for the initial roll out of the franchise in the USA. Red Hornbill Holdings (Pty) Ltd is a South African-based industrial holding company with investments in property and the food sector. It views the Chesa Nyama USA opportunity as a significant investment towards its diversification strategy.
The White Family Partnership, is the American-based partner, and is represented by Dr Ray White, who is a well-known businessman in the United States.
Says Dr White: “As an African-American with a great love of Africa and having done so much work in and made investments in Africa, I love the South African braai culture and we are very excited to bring a brand such as Chesa Nyama to the USA.
“It truly is a South African success story, due to its traditional menu and great value for money offer. Having grown from one store to 300 in just three years, it has become South Africa’s best loved take-away. We hope for the same success in the US.”
Although Gold Brands will not provide any capital for the expansion of the Chesa Nyama brand in that market, it will provide logistical support for the development of the product lines, branding, menu costing, and strategic support towards the roll-out of Chesa Nyama USA.
Gold Brands Investments will hold 30 percent of the US-based company, with Red Hornbill holding 40 percent and the remaining 30 percent being held by The White Family Partnership.
Indications are that the brand in the USA will be a sit-down restaurant concept offering an iconic taste of South Africa. The first store, in Nashville, Tennessee, is expected to open before the end October 2016.
The company noted in its cautionary announcement that the MOU is subject to regulatory approvals and to the finalisation of detailed agreements.