Famous Brands brings PAUL to SA

Maxime Holder, president of Paul. (Supplied)
Maxime Holder, president of Paul. (Supplied)

Johannesburg - After two years of negotiations, Famous Brands [JSE:FBR] on Tuesday announced it has signed an agreement with French bakery-café chain PAUL to become its South African licensed partner for a ten-year period.  

In terms of the agreement, Famous Brands will open five restaurants over a five-year period in three trading formats. The first flagship PAUL restaurant is scheduled to open by the end of 2016.

PAUL is a 126-year-old family-owned French chain of bakery-cafés with an international presence in 41 countries in Europe, Africa, Asia, America and the Middle East. PAUL serves over five million customers a month in its 400-plus bakeries across France.

According to Famous Brands Group CEO Kevin Hedderwick the partnership is aimed at enhancing Famous Brands' premium-end offering.

"While PAUL's product offering is classically French, it also brings innovation and continuous development of new products," he said.

READ: Famous Brands is reaping rewards

Hedderwick said PAUL's authentic offering - served in its trademark chic restaurants - will have enormous appeal for discerning local consumers who are increasingly aligned with international trends and choose to associate with brands with style and status that are popular in Europe and the US.

He explained that these days eating out is about the experience, and brands that differentiate on an experiential platform continue to perform strongly. There is also a growing demand for premium offerings and customisation - both aspects PAUL caters for in his view.

READ: Famous Brands posts robust turnover growth

“Research confirms the continued growth in this country of the higher LSM and middle income market, with consumers constantly looking to indulge in premium brands that offer quality.

"Buying into an international brand of this calibre will afford us access to all the global learnings and best operating practice that has been developed," said Hedderwick.

Famous Brands will also have direct access to PAUL’s marketing and operations expertise and new product development and training facility in Lille, France.

Maxime Holder, president of PAUL International, said "PAUL, like Famous Brands, is a family business and our entrepreneurial cultures are aligned”.

He said Famous Brands can in the longer term provide PAUL with access to African countries outside of South Africa where the French chain is not currently represented.

ALSO READ: Famous Brands acquired 51% stake in Retail Group

ZAR/USD
16.97
(+0.34)
ZAR/GBP
21.16
(+0.37)
ZAR/EUR
19.07
(+0.55)
ZAR/AUD
11.75
(+0.22)
ZAR/JPY
0.16
(+0.54)
Gold
1777.06
(+0.54)
Silver
17.97
(+0.02)
Platinum
811.00
(-0.97)
Brent Crude
42.09
(+1.84)
Palladium
1904.00
(+0.39)
All Share
54617.19
(+1.54)
Top 40
50309.77
(+1.49)
Financial 15
10214.89
(+2.12)
Industrial 25
76156.33
(+1.23)
Resource 10
50768.18
(+1.58)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1540 votes
I am taking a hit, but should be able to recover in the next year
23% - 2005 votes
My finances have been devastated
34% - 3011 votes
It's still too early to know what the full effect will be
25% - 2186 votes
Vote