The Restaurant, Fast Food and Catering Industry in South Africa 2017

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Dec 06, 2017, 00:03 ET

NEW YORK, Dec. 5, 2017 /PRNewswire/ -- The South African Restaurant, Fast Food and Catering Industry:

The South African restaurant, fast food and catering sector generated revenue of more than R57.25bn in 2016. According to the most recent figures published by Statistics South Africa, the restaurant/coffee shop segment generated just over 51% of the sector's total income during the period 1 May 2017 to 31 July 2017, while the fast food and catering segments contributed 35.5% and 13.36% respectively. Although premium establishments catering for foreign tourists and niche upper-income customers continue to be well supported, the independent restaurants remain under pressure, as cash-strapped consumers endeavour to cut back on luxury spending. In addition to dwindling customer numbers, local food and beverages service providers report higher overheads and narrowing profit margins.

Read the full report: https://www.reportlinker.com/p02675546

Cost containment strategies:

In an effort to improve cost efficiencies several of the country's leading franchisors have adopted vertical integration strategies. Famous Brands' partnership with the Coega Dairy Company means that milk sourced from the dairy is used to make cheese, which is supplied to the Group's franchisees. The group also has a majority stake in the roasting and packaging business, Java Lava Beverage Manufacturers, and has become one of the country's largest coffee-roasting businesses. As centralised procurement facilitates quality control and allows for economies of scale in terms of purchasing and sourcing, Taste Holdings, through its Buon Gusto Food Services division, is able to manage the supply chain that serves its food franchisees.

Report coverage:

The Restaurant, Fast Food and Catering Industry report examines current conditions and key trends in the industry, reviews the performance of local players and discusses the factors that influence the success of the sector. Profiles are provided for 46 companies including Kentucky Fried Chicken (KFC) which is the leading fast food brand in South Africa. Also profiled is dominant player in the catering sub-sector, Tsebo Catering Solutions. In February 2017 Wendel, a leading European-listed investment firm, announced that it had acquired 65% of the share capital of Tsebo Solutions Group valued at R5.25bn.

Read the full report: https://www.reportlinker.com/p02675546

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