(Ecofin Agency) - In South Africa, Famous Brands has announced it is taking a 51% stake in Salsa Mexican Grill (SMG). Without disclosing financial details, the firm’s management said the transaction was part of its plan to reinforce its presence in the casual dining sector.

For Salsa Mexican Grill, the deal marks the success of an innovative business model. Launched in 2015, the firm which specializes in Mexican fast-food should open two franchised restaurants this year. Famous Brands noticing a gap in the market for fast-casual Mexican food preferred to buy the firm instead of launching its own business. “Although we explored the possibility of establishing a start-up concept of our own, by acquiring a controlling stake in Salsa Mexican Grill we gained significant strategic advantage given the brand's first-to-market head-start and best-in-class offering,” said Famous Brands’ chief executive, Darren Hele.

Famous Brands, which runs Steers, Debonairs Pizza and Wimpy restaurants, said the local market offers various opportunities for expansion, despite pressures on consumers’ revenues. This year, the group plans to open 202 restaurants in South Africa, this after opening 213 in 2015, Reuters reports.

Aaron Akinocho