How Starbucks owner Taste Holdings plans to turn things around
Because of a shortage of funds Taste has stopped rolling out its Domino’s and Starbucks stores
Indigestion seems set to remain on the menu for troubled fast-food operator Taste Holdings. Its food division hasn’t produced a profit since 2015, it has not been able find a buyer (for the price it wanted) for its jewellery operations and has had to be refinanced several times by its shareholders. The group runs the US chain Domino’s Pizza and Starbucks coffee shops in SA, and though it still has high hopes for these chains, its cash constraints have led to it putting a freeze on rolling out more stores. Its latest refinancing this year has boosted its coffers through a R398m rights offer — the money was used to pay off its R270m debt. But Taste also later got a commitment from its now majority shareholder, the Sean Riskowitz-backed Riskowitz Value Fund (RVF), to provide a R200m loan facility. This is unlikely to be enough. At some stage, it will need to be refinanced once again. "They are going to run out of money again," says Just One Lap founder Simon Brown. The group has been b...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.