Starbucks and Domino's widen Taste's loss
The aftertax loss grew 16% to R34.4m during the six months to end-August, the franchisor reported on Wednesday morning, from the previous matching period’s R29.7m. Interim revenue grew 9% to R529m.
Taste launched US coffee chain Starbucks in April, and its first two South African stores contributed R18m revenue during the reporting period.
"All three trading stores are trading well ahead of our original investment cases and forecasts," CEO Carlo Gonzaga said in the results statement.
"The Starbucks launch has been lauded by Starbucks around the globe and, as South Africans, we can proudly say that we have already set some records within this globally admired brand."
The conversion of the group’s Scooters Pizza and St Elmo’s outlets into Domino’s had increased their average weekly sales by 17% since March, Gonzaga said.
Domino’s grew to 85 outlets at the end of August from 74 at the end of February, and the chain has added a further two outlets since the reporting period.
Besides fast food, Taste also franchises jewellery chains NWJ, Arthur Kaplan and World’s Finest Watches.
"Same-store sales in the division increased an exceptional 25% over the prior period, which, combined with new-store growth, resulted in a system-wide sales increase of 27% to R316m," Gonzaga said.
He said jewellery stores tended to generate about three-quarters of their profits during the second half of the financial year, which includes the Christmas period.