Fast food company, Famous Brands said that plastic straws will be removed and replaced in all of its stores across SA and the UK by December. File Image:IOL

CAPE TOWN -  Fast food company, Famous Brands, said on Monday that plastic straws will be removed and replaced in all of its stores across SA and the UK by December.

The company's restaurant will now use paper straws. 

The group's brands portfolio comprises of 25 restaurant brands, including Steers, Wimpy, Debonairs, Mugg & Bean among others, represented by a network of 2 874 restaurants across SA, the rest of Africa, the Middle East and the UK. 


Some of Famous Brands restaurants. Supplied

During their interim results announcement, Famous Brands said that the company was "sensitive and responsive" to consumer campaigns that "are driving awareness of environmental issues."

The company said that it was due to these campaigns that Famous Brands felt the need to replace plastic straws with paper ones. 

Famous Brands said that they were committed to change and this would also be seen in their use of cage-laid eggs.

The move to not use cage-laid eggs was being looked in to but would take time, according to the company. 

Famous Brands said that they were fully committed to moving away from cage-laid eggs but this was not a simple and easy step. The company is studying the feasibility of such a move and are trying to get a consistent supply of cage-free eggs to meet all its restaurant's requirements. 

"We support the goal to procure 100% cage-free eggs throughout our operations by 2025."

COMPANY RESULTS 

Famous Brands also reported that headline earnings per share were up 10.6 percent for the six months ended 31 August due to strong organic growth in SA and the rest of Africa and Middle East (AME) operations.

Operating profit grew by 9.9 percent to R222.5 million, up from R202.5 million last year, of which leading brands contributed R218.6 million and signature brands the balance with no dividend declared.

In the six months period, the group prioritised its leading mainstream brands, up weighting resource support expanded the home delivery offering across all brands, grew capability in the digital and social media arenas; and entrenched its presence in key AME markets.

The group said that it continues to comply with its financial covenants and comfortably meet its repayment obligations of R2.4 billion debt, in line with agreed financing commitments. 

The group said it was satisfied that the growth agenda and strategies were clear despite challenging local and global trading conditions.

BUSINESS REPORT ONLINE/ANA