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
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...