Franchisee of international Hooters restaurants and minority owner in the privately held Hooters of America, Chanticleer Holdings is presently the only entity through which Hooters fans can easily purchase stock in the famous fun-time restaurant they love. With big developments on the horizon, it's shaping up to be a good year for Chanticleer and Hooters as they head further into 2013.
With a focus on achieving same store sales growth, improving consolidated gross margin to 62 percent from 58.2 percent, increasing overall profitability, and expanding the number of Hooters restaurants it owns and operates, Chanticleer is taking steps toward a very prosperous year.
Currently, Chanticleer has exclusive franchise rights to open and operate Hooters restaurants in South Africa, Hungary, and parts of Brazil. The company has also joint ventured with the owner of exclusive Hooters franchise rights in Australia. Chanticleer currently owns and operates, in whole or in part, six Hooters restaurants, and that number is set to increase to 10 during 2013. The company's current Hooters restaurants are located in Durban, Johannesburg, Cape Town, and Emperor's Palace in South Africa; Budapest in Hungary; and Campbelltown in Australia. Among locations planned to be opened this year is a long-awaited Hooters restaurant in Rio de Janeiro, Brazil; another in Pretoria, South Africa; and one in Surfer's Paradise, Australia.
In its South Africa restaurants, Chanticleer has already taken steps toward improving same store sales growth and gross margin, having implemented price increases on food and liquor that still reflect competitive pricing in the current market. Menu offerings have been updated for Hooters South Africa locations, with the removal of slow-selling items and the addition of new menu items that appeal to women - including two new salads, expanded wrap offerings, a "ladies cut" steak, and the option for guests to purchase a smaller portion of curly fries with their main course. The company is also enhancing the appeal of its restaurants for customers, having increased the seating availability in its Durban restaurant to accommodate busy weekends and large groups, and having invested in additional televisions to improve the guest experience at its Johannesburg location. The company experienced same store sales growth in South Africa for 2012 and anticipates further improvement this year.
Chanticleer is also making strides toward reducing costs, increasing profitability, and boosting guest traffic at its Hooters of Budapest location. During this first quarter of 2013, Hooters of Budapest is launching its Efficient Operation Network - a tool developed to lower sales costs and labor costs and improve overall operational efficiency. That restaurant is also hosting first-time events to increase guest traffic, including a tequila party, bike night, and the recently celebrated Valentine's Day Blowout. Hooters of Budapest is also launching a "Girls of Budapest" pictorial and plans to open its outdoor patio this year in time for the thriving Budapest tourist season (April through October); this will add 140 seats to the restaurant, increasing total seating by 56 percent.
For more information about purchasing ownership in Hooters, visit www.chanticleerholdings.com
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