Supermarket ready meals had better watch their backs. This week Famous Brands, owner of eateries such as Turn ’n Tender and Wimpy, broke with tradition and bought a stake in caterer By Word of Mouth. It would seem an odd fit at first, but it really isn’t. I’ll tell you why. First, some background. Famous Brands is the Pac-Man of the SA restaurant space. Just when we’re digesting (corny, I know) one of its buyouts, it makes a play for something else. This is Famous Brands’ sixth acquisition this year, and it now has some debt on its balance sheet. What’s different, though, is that it will be playing in the food service or catering industry —that’s meal prep, outside the home, which is different from its legacy quick-service restaurant or table-service business. This is the plan. By Word of Mouth will give Famous Brands entry to the fast-growing segment of commercial catering and corporate functions. Companies, despite the incredibly bleak economic environment, continue to shell out a...
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