Wimpy owner goes Gourmet

THE South African owner of Wimpy has gobbled up Gourmet Burger Kitchen in a £120million deal to take a bigger slice of Britain’s fast-growing eating out market.

Famous Brands said it would look to double GBK’s estate over the next five years both by continuing the roll-out of the 75-strong chain in the UK and exporting the brand to its domestic market.

It said it had saved about £40million after the drop in the pound since the EU referendum, but shrugged off concerns that Brexit could lead to consumers losing their appetite for casual dining.

Famous Brands’ strategic adviser Kevin Hedderwick said its acquisition of Wimpy in the UK in 2007 had provided “invaluable understanding and insight into the local market”.

He said: “This is the biggest deal the group has ever concluded, and one which will transform the future of the business.

“The low-interest environment in the UK is supportive of continued consumer spend, while the impact of fears of Brexit on this sector appear negligible – endorsed by a recent survey which confirms that, despite the generally subdued economy, household spend in the eating out category is up four per cent year on year.”

The acquisition of GBK from South African investment vehicle YellowWood, which owns the Nandos chicken restaurant chain, marks the latest in a string of deals in the sector, where the likes of Ask, Zizzi, Prezzo and Giraffe have changed hands.

YellowWood paid £30million in 2010 for GBK, which was launched in 2001 by three New Zealanders.

A growing trend for trading up to premium burgers has put the company on course to deliver like-for-like sales growth of five to 10 per cent this year for an annual turnover of £75-80million.

GBK chief executive Alasdair Murdoch, pictured, and his team will continue to run the business.

He said: “Our aims remain the same: to continue opening 10 to 15 restaurants a year in the UK, continually elevate our food, and look at other growth opportunities.

“We think we can open another 150 in the UK. I think the market is quite robust.

“We noticed post-Brexit there was a little bit of a bounce where people relaxed and we had a very strong July. I think consumers will still go out and spend as we are very affordable.”