Since Taste Holdings CE Carlo Gonzaga opened his first Scooters pizza store 16 years ago he has always thought big.But there is market concern that in taking on Domino’s Pizza and Starbucks, two global heavyweight brands, in one shot he has bitten off more than he can chew. The market has left no doubt about this concern, wiping almost two-thirds off Taste’s share price since July 2015.Living up to sombre expectations, in the six months to August, Taste dished up a headline loss of R33.7m (9c/share), R4m up on a R29.7m loss a year earlier.When Taste took on Domino’s in April 2014 and Starbucks 15 months later it meant mega-capex lay in wait. Taste started burning cash at a scary rate. R480m raised in three rights issues since 2014 has been gobbled up. Taste has also accessed R253m of a R1bn medium-term note programme it listed in 2014.And the debt level keeps on rising. At the end of August long and short-term debt of R305m was up R17m on a year earlier while cash on the balance she...
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