Private equity group True has made a “strategic investment” in the circa 170-strong German Doner Kebab (GDK) brand, to support its continued rollout in the UK and accelerate growth across existing and new markets globally,
This investment which was first reported by Propel, marks True’s first investment in the hospitality sector.
Since launching in the UK in 2015, GDK has grown to more than 145 UK locations and in excess of 170 globally under Hero Brand’s ownership and the leadership of chief executive Simon Wallis. Hero Brands, the majority investor in GDK since 2016, will continue as an investor and key partner as the business looks to further deliver strong growth.
Propel understands that GDK has a global ambition of £1bn system sales by the end of 2028 across 15 markets. It plans to have circa 300 restaurants in the UK by the end of 2028. It is thought that GDK generated interest from private equity players both in the UK and internationally, with the business understood to be valued at circa £70m.
GDK also operates 12 sites in the UAE, five in Sweden, three in Canada, eight in the US and one in Saudi Arabia. Earlier this year, GDK opened its first train station site, within the food terrace in London Victoria’s Victoria Place shopping centre.
It became the brand’s 55th site in London, and one of 28 restaurants it is planning to open in the UK this year. GDK is also planning to open 45 restaurants in international markets in 2025. GDK, which delivered £163.7m system-wide in 2023, counts Atul Pathak, formerly the UK’s largest McDonald’s franchisee, as one of its UK franchisees.
Last summer, Wallis, who spent 13 years at Domino’s Pizza Group, told Propel that GDK was targeting filling “bags of white space” outside London, including its first drive-thru.
He said the brand also plans to further roll out its travel hub locations, smaller format stores and its breakfast offer. The company anticipates having its first smaller format store by end of the second quarter of 2025, but doesn’t anticipate opening its first drive-thru until next year.
True said it will leverage its “deep expertise in the consumer sector and understanding of brands” to support GDK in its ambitions to scale further in the UK, given significant headroom, and accelerate growth across new markets globally. It said that the strategic partnership between True and Hero Brands is a “compelling platform for the sustained success of GDK”.
Wallis said: “We are delighted to be partnering with True. Its extensive understanding of brands and consumers will be hugely valuable as we continue on our exciting growth journey. At GDK we are inspired by our purpose to elevate the kebab eating experience and it’s great to be working alongside a partner that shares the vision of dominating the kebab category across the world and in every neighbourhood we operate in.”
Athif Sarwar, executive chair of Hero Brands, said: “The GDK movement has been blessed with monumental growth. We have built an incredible team at GDK focused on delivering for our partners, franchisees and guests, and we are looking forward to the next phase of the GDK journey with True.”
Richard Sharpe, managing director at True and new board member at GDK, said: “GDK is an exciting brand with a highly attractive business model in the resilient quick service restaurant sector.
We have known the team at Hero Brands and GDK for a number of years and are excited to partner with Athif, Simon and the team, to continue supporting the exceptional growth in collaboration with our franchisees and delivering great experiences for our customers.”
Paul Cocker, chief executive and co-founder at True, said: “I’m excited to welcome another exceptional business to our growing portfolio of high-growth brands – our first investment in the hospitality sector. While the macro environment remains volatile and trading conditions are challenging for many consumer businesses, our focus remains firmly on the long term.
We believe this climate offers a unique opportunity to back outstanding management teams who are building enduring, category-defining brands. I’m excited to partner with the GDK team as it embarks on the next phase of its journey.”
Hero Brands was advised by Cavendish.
