Will dumping fast food grease the wheels of Taste Holdings?

Business

Will dumping fast food grease the wheels of Taste Holdings?

Company tries to make a go of it with luxury goods after getting rid of Starbucks and Domino’s

Siseko Njobeni

The shift by Taste Holdings (https://www.sharenet.co.za/v3/quickshare.php?scode=TAS) away from fast foods to focus on its luxury goods business is anything but a silver bullet for the struggling company.

Taste, which has just lost its second CEO in 2019, is  being squeezed by lower consumer spending in the quick-service restaurant segment. But to concentrate on luxury goods – NWJ Jewellery, Arthur Kaplan and World’s Finest Watches – will expose the company to big cyclical swings in demand as the disposable income of consumers changes.   

In the year to end-February 28, 2019, revenue in the Taste luxury goods business fell by R69m (12%) to R490m...

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