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Taste halts Domino’s and Starbucks store expansion

Taste says the companies are not making enough money to justify further expansion.

South Africa’s Taste Holdings said on Tuesday it had halted the roll out of new Domino’s Pizza and Starbucks stores after reporting a loss in the first half of its financial year.

South African retailers have struggled to lift earnings this year in the recession-bound economy as elevated household debts. Taste said higher fuel prices, an increase in value-added tax and income taxes have squeezed consumers’ pockets.

Taste, which has 48 Domino’s stores and 12 Starbucks outlets, said Domino’s was the biggest underperformer during the period.

Taste also said Starbucks, which opened its first South African store in 2016, was not making enough money to justify further expansion.

“At present, Domino’s existing corporate store network is producing operating losses and whilst the Starbucks’ store network is profitable at an Ebitda level, it is not producing the required return on the store investments,” it said in a statement.

Ebitda stands for earnings before interest, tax, depreciation and amortization, a measure of operating profitability excluding most expenses. 

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This one its a dead horse. Nothing left here for shareholders, you cannot even sell cause its worthless

the end is near…will be a great case study of stupidity one day…Scooters was by far better than Domino’s

You are talking BS. I had Scooters Pizza once and never again..awful pizza with cheap ingredients. They changed to Dominoes and we order it literally every weekend..the best pizza chain by far.

Grand Parade investments should either merge or buy them out. Imagine that, Dominoes, Starbucks and burger King under one umbrella..give them five years and they’ll be flying.

with GrandParade I can agree but not with your taste

Grande Parade cover their backsides through their casino interests in Worcester and other area but not through Burger King. Check the history of Adams and his company before investing

Interesting one, stopping expansion makes sense but the brands are strong and you’d think if they can stabilise the profit margins at a store level then this could take off. One for the watch list.

The travesty with Taste is that they went into the franchise market with their eyes closed.
I wrote to the company this a.m. (before their results came out) questioning what they go so wrong in their strategy – no response. They have directors who have been around the block Grant Pattison, Kevin Utian, Hylton Rabinowitz and a few others and yet they couldn’t run this operation profitably – I wonder if they can ever bring it back to life – suppose the next stunt will be to delist the company

Starbucks need to make the lines move faster and put in place systems for getting customers to the till quicker. You cannot wait for the line to get out the door before reacting. If they don’t fix this more people will turn around and go to a coffee shop where they don’t have to wait. Coffee shop basics guys.

Patience is a virtue my dear Colson

I agree but as a regular Starbucks customer I genuinely believe they can do more to reduce the wait times.

Here in Klerksdorp, we do NOT even have a Starbucks outlet….sob…but it appears from others’ comment, we’re not missing much! 😉

Mugg&Bean (and a few local boutique coffee shops) serve the town ‘tastefully’ (no pun intended).

Yes, we have a DOMINO’S for 5 yrs….only been there twice.

As for our local Romans Pizza, been there a gazillion times. Staff knows me on first name basis 😉

Every day another South African company comes out with bad results-terrible..and this while the planet is in a global expansion phase of over 3% per annum. Thank you…occupants of Luthuli robbers den!

I am yet to see a Starbucks in Cape Town … Maybe that’s why they not performing

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