• Tashas owner and founder Natasha Sideris thanked Famous Brands for granting the restaurant chain a platform to expand into international markets.
• Famous Brands announced the sale of its 51% controlling stake in tashas on Monday morning.
• Independent analyst Simon Brown says economic challenges are likely to drive Famous Brands to lean more on its core functions and less on signature brands.

Tashas owner and founder Natasha Sideris says parting ways with former investor Famous Brands was sweet, but not sorrowful, as the high-end restaurant chain still has bold plans for international expansion.

Famous Brands announced the sale of its 51% controlling stake in tashas on Monday morning.

This comes after 12 years of investment, which began under former Famous Brands CEO Kevin Hedderwick in 2008.

During its 12 years with Famous Brands, tashas was in a family of signature brands that included Volvo Telo, Turn n Tender Steakhouse, Keg, Salsa Mexican Grill and House of Coffees.

Earlier this year, Famous Brands announced it would cut funding to the struggling British Gourmet Burger Kitchen business it invested in.

Sideris said tashas and other brands under the group would continue to focus on expanding tashas and their other brands to international markets, where they have already enjoyed some traction.

"Our plans are to expand internationally with tashas as well as with our other brands: Avli by tashas, Flamingo Room by tashas and Galaxy Bar, focusing on the Middle East, Europe and eventually the USA," said Sideris.

Sideris said the journey with Famous Brands was "an amazing one" as the company worked closely with the restaurant chain to lay a solid foundation for the company and its growth internationally.

"The past 11 years of our partnership will always be an important part of the brand's legacy. As tashas is my namesake, it is a very emotional purchase for me and we are thrilled with the outcome," Sideris said.

She said tashas was not immediately interested in courting another suitor for investment in the restaurant chain.

"We are not interested in finding investors at this time and plan to grow the business within our current structure," she said.

Back to the core

Independent analyst Simon Brown said a signature brand of casual dining, such as tashas, was always going to be challenging for Famous Brands to synchronise with lower end eating brands in the same stable, and he expected CEO Darren Hele to focus on core operations in a fraught environment.

"It's not going to be a Steers and it never really took off to the level they hoped it would. It was very much a legacy of the previous CEO. They can still leverage the central kitchen to their other brands, but they weren't getting those levels of leverage as a Steers or Debonairs," said Brown.

Brown said when Famous Brands made the acquisition of tashas and other high-end casual dining outlets, the economy was already "going through a rough time" and they did not get the critical mass they may have hoped for to boost the signature brands adequately.

"An establishment like Turn n Tender doesn't necessarily require a hundred stores, a dozen could be enough. They are probably looking to exit the other casual dining outlets that they are invested in, such as Volvo Telo and Turn n Tender," Brown said.

The Walmart Effect

Brown said the signature brands under Famous Brands faced the possibility of coming under a Walmart effect, where the cosmopolitan, sophisticated characteristics of these brands might succumb to the "fast food" operation model, which is central to Famous Brands' core brands as their scale and footprint grows.

"The central kitchen of Famous Brands must go through billions of serviettes in a month. They might be the same, with the difference being in the logo at a Steers and a Debonairs. With a casual dining outlet, a higher quality of serviettes will be required," said Brown.

During the lockdown, Sideris said tashas refined its menu to operate more efficiently and ensure customers get quality and variety.

"I have always been against delivery as, ideally, I want people to enjoy the entire experience of tashas by coming into our restaurants – sitting in stunning environments, eating beautiful food and being taken care of by our amazing staff.

"The pandemic has made us relook at delivery and it is now an important part of our business strategy moving forward," she said.

Sideris thanked the Famous Brands stable of brands, tashas staff, franchisees, her brother, Savva, and Famous Brands CEO Darren Hele for ensuring a smooth transition.