Domino’s falls as US chains leave a bad Taste in SA market
Starbucks also wakes up and smells reality, joining Dunkin’ Donuts and Baskin-Robbins as latest entities struggling to get off the ground
Taste Holdings, which holds the licences in SA for Starbucks and Domino’s Pizza, said on Friday it planned to exit its food business after becoming the latest company to realise it had bitten off more than it could chew in trying to make a profit from US franchises in SA.
Taste will join Grand Parade Investments (GPI) in giving up on US franchises, with that group announcing in February it was disposing of Dunkin’ Donuts and Baskin-Robbins to channel capital into Burger King.
Analysts said the disposal highlighted the pressure on food retailers amid a tepid domestic economy and the difficulties of getting new foreign chains off the ground in a market already full of local players...