JSE-listed Famous Brands CEO Kevin Hedderwick will resign on February 29, following 16 years with the branded food service franchiser, with Food Services CEO Darren Hele appointed to take the helm of the company.

The company explained on Tuesday that Hedderwick’s impending retirement and the appointment of his successor had been the subject of intensive consideration over the last year, as Famous Brands had a robust executive management succession programme in place.

“It is fair to say that over the past 16 years of my life this business has been all-consuming. I am satisfied that we have achieved the strategic and operational ambitions I formulated at the outset of my tenure. The foundations for the future are firmly in place, including a strong executive management team, optimally structured business model and a pipeline of growth opportunities to continue to meet stakeholder expectations,” noted Hedderwick in a statement.

He added that the business was perfectly poised to enter its next growth cycle under Hele's leadership and he looked forward to supporting him in that regard having accepted a 12-month contract as the group’s strategic adviser starting March 1.
 
“From March next year, in conjunction with my role as strategic adviser to the group, I am also looking forward to exploring the next chapter in my personal growth story.  During my career with Famous Brands, I derived enormous satisfaction and reward from identifying and developing entrepreneurial businesses and I hope to pursue that interest in a range of capacities in the future,” Hedderwick said.
 
The strategic advisory role included mentoring Hele and the executive management team as required, pursuing and evaluating new growth opportunities for the group, overseeing execution of new acquisitions and managing the investor relations portfolio.

“Thereafter, he will be invited to join the board as a nonexecutive director.”

“The board would like to express its gratitude to Kevin for his long-standing contribution to the business and looks forward to his continued involvement in his new capacity,” said Famous Brands board chairperson Santie Botha.
  
Hele joined Famous Brands in 2003.  He served as Wimpy South Africa MD and later Wimpy  UK.  In 2011, he was appointed franchising COO and in 2013 assumed the position of group COO.  With effect from March 1, 2014, Hele was promoted to his current position.
   
“We are delighted that Darren is in place and well qualified to succeed Kevin, bringing to his new role extensive experience in the group and the industry.  With Darren’s appointment, the board is satisfied that the planned management transition will be seamless and will ensure the business is optimally prepared for the next phase of its growth,” Botha said.
 
On behalf of the Halamandaris and Halamandres founding families, Panagiotis Halamandaris stated that Hedderwick had overseen the transformation of the group from a small, two-brand company into a vertically integrated business comprising 27 brands represented by over 2 500 franchised restaurants across South Africa, the rest of Africa, the UK and the Middle East, underpinned by substantial manufacturing and logistics operations. 

“Under his stewardship the business has delivered a significant increase in profitability through both organic and acquisitive growth, and has consistently ensured excellent returns to shareholders.”

Since his appointment in 2000 as Steers MD, Halamandaris points out, the group’s share price increased from R1.69 a share to R141.53 a share, equating to a growth in market capitalisation from R105-million to R14-billion.

In 2001, Hedderwick was appointed group COO, a position he held until his appointment as group CEO in 2010.
  
“We are confident that the strong foundations laid over the past 16 years will ensure that under Darren’s leadership the business will continue to flourish.  The management team is assured of our continued commitment and support,” Halamandaris concluded.