South African consumers are discerning when it comes to restaurants, having a broad choice of cuisines and venues to choose from, and being increasingly exposed to global trends. And while South Africa can be proud of the fact that it does have world class restaurants, others that offer poor service, no value and just don't have that extra special differentiating factor, will simply not draw repeat business, says Keith Evans, who heads up the new restaurant division of Pam Golding Mergers & Acquisitions, a member of Pam Golding Commercial.

Having been involved in every aspect of the restaurant business and in the hotel industry for 25 years, Evans says there are several trends evident in the industry. "Recently we've noted the success of a number of larger 300 seat restaurants, trading in major turnovers of approximately R8-R12 million per annum, while on another level are the very popular chef/patron restaurants which vary in size but average at around 60 seat establishments.

These are generally owned and managed by people who've been in the hospitality industry for some years and who have always dreamt of owning their own restaurant, and the successful ones tend to offer something different and imaginative, to capture and retain their clientele. Franchised restaurants offer a great opportunity, especially for new entrants to the industry, who through the franchise operation will receive all the necessary systems and training.

"There are also of course many franchised coffee shops, who are gradually edging out a great deal of the traditional coffee shops. Today any coffee shop that is not connected to a shopping mall is virtually a dying breed,"

says Evans. "With the rejuvenation of Cape Town's city centre there is more scope for really good restaurants. The popular tourism areas of the V&A Waterfront, trendy Camp's Bay, upmarket Constantia, vibrant Green Point and historic Simon's Town, also offer opportunities for restaurateurs. However, there's a great deal of pressure on suburban restaurants, and they have to really make a name for themselves given the strong competition. These days the trend is moving away from traditional ethnic cuisine - patrons want a mix of styles or a fusion of different cuisines."

Evans says while there are sound returns to be made, with a good restaurant achieving around 20 percent net profit before tax and depreciation, there's no place in the industry for those who don't have efficient systems in place in order to monitor and maintain tight control over every aspect of the business. Restaurants are also often compelled to pay high rentals, particularly those in large successful shopping malls.

Providing a full spectrum of services to initiate, facilitate and accelerate transactions, Pam Golding Mergers & Acquisitions markets commercially viable restaurants mainly priced from R1 million up to around R12/R15 million, and situated in the Western Cape, including the Winelands, West Coast and Garden Route, as well as Johannesburg, Port Elizabeth and Durban. They are currently marketing a number of businesses within this price range. Says

Evans: "Restaurants tend to change hands approximately every five years, which is natural given the creative nature of the business - with owners often moving on to seek new challenges."

Keith Evans trained at Hotel School in Johannesburg and soon thereafter was asked to commission a hotel in Pretoria for the South African Navy. He later joined Anglo American as manager of Amcoal's catering operations, and also then completed a B.Com. He has managed a four star guest house, managed a group of restaurants, owned two restaurants, and for the past seven years ran his own hospitality human resource consultancy specialising in restaurants. He served on the Restaurant Guild (FEDHASA) from 1993 to 1996.

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