GPI’s gamble on the SA food market is a loser
Grand Parade Investments has grappled with the challenges of an unfamiliar fast-food industry that faces pressure in a low-growth economy with low consumer confidence
Gaming and casino company Grand Parade Investments (GPI) is exiting its Dunkin' Donuts and Baskin-Robbins businesses as its losing streak continued in the food market that it entered in a gamble three years ago. On Friday GPI announced that it had filed an application for voluntary liquidation of both businesses after not getting any "serious offers" for them. GPI's share price has declined by about 37% since it bought the rights to the operations. Acting CEO Mohsin Tajbhai said the decision was made because these businesses had negatively impacted cash resources. "Since June 2018, it has become apparent that both brands would not meet their original nor revised forecasts based on the poor performance of existing stores," said Tajbhai. GPI's food business has been disappointing. It grappled with the challenges of an unfamiliar fast-food industry that faces pressure in a low-growth economy with low consumer confidence. GPI owns the South African licence for Burger King and has a 17% ...
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