Cape Town – South African fast food franchise, Chesa Nyama, will open its first sit-down shop in the United States this year, after the braai brand owners, Gold Brands, struck a deal with the an American investment company.
According to Gold Brands, the first Chesa Nyama store in the US was set to open in Nashville, Tennessee, before the end of October this year.
Gold Brands announced in a cautionary on Tuesday that it had signed a Memorandum of Understanding with private investors, South African-based industrial holdings firm Red Hornbill and the White Family Partnership – an American-based partner – to take the South African traditional braai franchise to the US market.
The Area Development Agreement, the deal between these partners, would allow for the establishment of the US-based Chesa Nyama Holdings, with Gold Brands as a partner in the joint venture.
Gold Brands will hold 30 percent of the US-based holdings company, with Red Hornbill holding 40 percent and the remaining 30 percent being held by The White Family Partnership.
According to the deal, Red Hornbill and the White family will fund the set up and establishment costs for the initial roll out of the franchise in the US.
Gold Brands will provide no capital but only logistical support for the development of the product lines, branding, menu costing and strategic support towards the expansion of Chesa Nyama in the US, the company said.
In a statement on Tuesday, Gold Brands chief executive, Stelio Nathanael said: “We have long had a dream of taking Chesa Nyama beyond the borders of Africa. The idea has always been to bring our iconic South African braai culture to America.”
Chesa Nyama is one of South Africa’s fastest-growing fast food outlets, with about 300 franchise shops employing over 3,000 people. Due to this growth, Gold Brands this year listed on the JSE.
African News Agency