A potential investor in the consumer and retail sectors is currently in discussions to acquire a significant stake in the German Doner Kebab (GDK) chain, aiming to position itself as a popular dining destination throughout the day.
Sky News has discovered that True, known for supporting companies such as energy drinks manufacturer Sneak and tattoo removal specialist Ray Studios, is considering making this investment at a valuation described by industry sources as exceptional.
GDK is presently under the umbrella of Hero Brands, an incubator of food and beverage concepts based in Glasgow.
The chain, led by CEO Simon Wallis, is set to launch its 150th outlet in the UK next month, leveraging a growing demand in the market.
Recent marketing efforts by GDK, carrying the tagline ‘Doners worthy of the daylight,’ aim to challenge the perception that doner kebabs are predominantly consumed by late-night partygoers.
In interviews, Mr. Wallis has acknowledged the difficulty of shifting this perception.
«The British public often associate kebabs with late-night consumption around 2:30 am,» he stated in a recent interview with MailOnline.
He also revealed that only 4% of GDK’s sales occur after 11 pm.
GDK follows a franchise model and reportedly has ambitious expansion plans in the pipeline.
Details regarding the proposed deal between True and Hero Brands remain unclear as of Wednesday.
Several other potential investors have engaged in discussions with Hero Brands earlier in the process, with one interested party noting that Cavendish bankers have been leading the negotiation.
True Capital has declined to provide a comment, while Hero Brands has been approached for a statement. GDK’s spokesperson could not be reached for comment.
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A serial investor in consumer and retail businesses is in talks to buy a big stake in the German Doner Kebab (GDK) chain as it seeks to promote itself as a day-round destination for hungry diners.
Sky News has learnt that True, which has backed companies including the energy drinks manufacturer Sneak and Ray Studios, a tattoo removal specialist, is proposing to make the investment at what casual dining industry sources described as a «stellar valuation».
GDK is currently part of Hero Brands, a Glasgow-based incubator of food and beverage concepts.
The chain, which is run by chief executive Simon Wallis, will open its 150th UK outlet next month as it seeks to capitalise on a surge in demand.
GDK has embarked on a marketing campaign with the slogan ‘Doners worthy of the daylight’ in recent months as it tries to dispel the notion that doner kebabs are primarily a food choice for inebriated late-night consumers.
In recent media interviews, Mr Wallis has remarked on the challenge associated with changing that perception.
«Essentially, the great British public have got this association [with kebabs] that you only ever eat them at about 2.30am,» he told MailOnline last month.
He added that just 4% of its sales were generated after 11pm.
GDK operates a franchise model, and is said to have much more ambitious expansion plans in gestation.
Further details of the proposed transaction between True and Hero Brands were unclear on Wednesday.
A number of other bidders are said to have held talks with Hero Brands earlier in the process, with one party which looked at making an investment in the business saying that bankers at Cavendish had been orchestrating the process.
True Capital declined to comment, while Hero Brands has been contacted for comment and a spokesperson for GDK could not be reached.