NO PROFIT, BUT MUCH OPTIMISM
GPI's indigestion over Burger King
More store openings, a dedicated production facility and management changes are expected to boost income
Hassen Adams, executive chairman of Grand Parade Investments (GPI), cannot be accused of not thinking big. "We are on our way to becoming a giant in the [fast] food market," he says. For the 20-year-old empowerment group, which built its interests in the gaming industry, Burger King will make or break its grandest ambitions. With the cost of opening a walk-in Burger King restaurant running at R4.5m and an even higher R7m for a drive through, the all-corporate store model represents a huge commitment of resources. GPI retains a 30% stake in Sun Slots and 15.1% in SunWest and the Worcester Casino. "We needed to de-risk ourselves and use our money to invest in blue-sky opportunities where we saw sustainable growth potential," says Adams. He continues: "I have been involved in the gaming industry for 20 years and it has become a lot more punitive." He describes dealing with ever-changing regulations, separate gaming boards in each province and a multitude of committees as a "nightmare"....
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