South African franchising company Gold Brands (GBI) will acquire 50% of the rights, trademarks and intellectual property of burger restaurant chain Ed's Diner from owner Vasilis Lazaridis.
Gold Brands and Lazaridis will operate the restaurant chain in a joint venture, which will own the exclusive rights to roll out and franchise the Ed's Diner concept throughout South Africa. GBI will also be the exclusive supplier to the new franchise.
Established in 1989, Ed's Diner is a classic American diner concept, serving gourmet burgers, grills, salads and pizzas in a 1970s-style space, with music, beers and cocktails and has since become a landmark in Pretoria.
Gold Brands COO Stelio Nathanael tells Engineering News Online that the JV is planning on rolling out ten stores in the next five years, including another restaurant in Pretoria, one on the Gauteng East Rand, one in Johannesburg and a franchise in Umhlanga.
“In the immediate term, we’re taking two stores in the next three, four months. Then we’ll take it from there,” he adds.
GBI took the decision to enter the gourmet burger market last year and has been reviewing various concepts over the last 18 months.
“Ed's fulfills all the requirements of the concept that the management of GBI had in mind and the brand is an established and successful brand that can be rolled out in its current form throughout South Africa,” the company said in a statement.