Food franchise Steers and Debonairs Pizza has recorded a Sh4.86 million loss, blaming the downturn on rising competition from the likes of KFC restaurant.
According to the financial data, the year ending February 2020 saw the restaurant make record a loss making spree on its local subsidiary. This comes months after the takeover by South-Africa’s Famous Brands of the franchise outlets in Kenya. The purchase also saw the buying out of the Kenyan firm Hoggers to allow Famous Brands run the franchise license.
The takeover together with increased competition means other franchises such as KFC, Chicken Inn and Pizza Inn struggle for the same market. Steers and Debonairs also happen to have suffered a financial setback with the loss of its prime location. The outlet on Wabera Street was shut down after a rent dispute back in 2017. The location loss was coupled with the shutdown of its outlet in Kenyatta Avenue which was lost due to inadequate sitting space.
Famous Brands however states its strategy with the recent takeover that happened on November 1, 2019. The SA franchise indicates that “ the rationale for the acquisition is in line with the Group’s narrow and deep strategy in the rest of Africa region.”