Taste to sell Starbucks franchise as food business loses its flavour
Taste Holdings said that following detailed operational reviews and canvassing potential partners and capital providers, it had reached the conclusion that Taste should change its strategic direction and exit the food business.
“It has become evident that capital investment required for the previous expansion strategy cannot be secured, given the current structure of the business and existing market conditions. In line with the company’s change in strategic direction, Taste food has entered into an agreement to dispose of the Starbucks business,” the group said.
The Starbucks business consists of 13 corporate-owned Starbucks stores situated in Johannesburg, Pretoria and Durban. Its other food business includes Domino’s Pizza, Maxis and the Fish & Chip Co.
The strategy shift would allow Taste Holdings to focus on its luxury retail brands, which include NWJ, Arthur Kaplan and World’s Finest Watches.
Source: iol.co.za
