Restaurants and guesthouses were the biggest beneficiaries of the COP17 conference in Durban during the past twee weeks. The accommodation industry expected to benefit by the tune of R500m, but the acting head of Durban’s strategic projects unit, Sue Bannister, said that it was closer to R1billion. Liquor sales at both restaurants, hotels (including guesthouses, B&B’s, lodges), pubs and bars were reported to be excellent. Restaurants (including coffee shops) provided 495000 meals, while accommodation was fully booked during the 14-day conference with approximately 160000 bed-nights. (Article by Times Live, edited by LiquorWise)

Keg Franchise Roll Out Delayed

Famous Brands’ (the Food and restaurant franchise conglomerate) efforts to revamp its Keg pub brand have been delayed by the Gauteng Liquor Board’s decision to freeze all new liquor licence applications until February year.

Famous Brands bought 28 Keg and five McGinty’s franchised outlets from Kingco in late 2010 in a R27m deal that added a leisure component to the company’s mainly fast food offering. At the time Famous brands conceded the Keg brand needed “renovation and innovation”, but plans for a revamp have been put on hold.

Famous Brands CEO Kevin Hedderwick says a newly re-branded Keg in Johannesburg’s northern suburbs, which is central to plans to convince franchise holders to convert to a new trading format, cannot open its doors until the board lifts the moratorium on applications for new liquor licences. Hedderwick says developments are most frustrating. “We’d love to show our franchisees how good the new look for the Keg is ... We wanted to show them where the new brand is headed.” Instead Famous Brands is lumped with a lease that has to be serviced and has incurred development costs with no way of generating any cash flow.

Hedderwick is hopeful the board will reopen applications in early February.

However, the moratorium will only end in February and it is expected to be in a phased manner – the details of which are not yet know — which means it might still be a long wait before first round is called in the new-look Keg.

Financial Mail article (edited by LiquorWise)