Fast food franchise Wimpy UK registers good business growth
Wimpy UK, the fast food franchisor of the famous global brand, has almost doubled its turnover. Wimpy UK, used as a springboard for British invasion of local chains, includes Steers, Whistle Drop, Pizza Debonair, FishAways and House of Coffees.
The South African franchise grew its revenue by 16 per cent. Operating profit also rose and was up 34 per cent. Its new international arm consists of Wimpy UK and financial holding company based in Cyprus.
Restaurant expansion was better in the previous year as they had opened 151 new stores. This year it slowed down quite a bit to just 106 new stores. National power shortage was the main cause of the slowdown, forcing to put ambitious expansion plans on hold. Inflation was a major cause of concern in the second half. However, the group managed to expand its operating margin to 18 per cent. The operating margin was 16 per cent in 2006.
According to Famous Brands’s Chief Operating Officer Kevin Hedderwick, their brands deliver high quality. Their competitors and a lot of other luxury foods chains will find it difficult to catch up.