The fast food and quick service restaurant (QSR) sector continues to show steady growth on the back of what has been a tough economic climate in South Africa. With a contribution in access of 29%, QSR has by far the biggest share in franchising turnover. According to the Franchise Association of South Africa (FASA), the franchising market is worth R587 billion Rand, which is approximately 13.3% of the South African Gross Domestic Product (GDP). Andre Beck, Sector Head: Fast Food and … [Read more...] about 4 Key Trends in SA’s fast food franchising sector
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What makes a franchise recession proof?
Over the past four years the franchising sector has displayed resilience, consistently growing its contribution to the country’s Gross Domestic Product (GDP) from 9.7% in 2014 to its present contribution of 13.3% - an upward trend that is most likely to continue despite the lackluster economy. The current growth of 13.3% is broken down by the Franchise Association of South Africa (FASA) as follows: The largest franchise system is the Fast Foods and Restaurant category (25%). The Retail … [Read more...] about What makes a franchise recession proof?
Fast Food Pricing Woes
Soaring input costs and the electricity tariff hike coming into effect in April, coupled with increasing food prices and daily living expenses are making it difficult for fast food franchises to pass on costs to consumers who are already struggling to make ends meet. Morne Cronje, Head of Franchising at FNB says in response to the tough economic conditions, fast food franchises are becoming more strategic about maintaining profit margins while making sure that their offerings remain relevant … [Read more...] about Fast Food Pricing Woes
Fresh risks for Africa’s fast food firms
While fast food companies in Africa have raked in the money over the past three years, they are facing fresh risks. These range from looming high prices and a potential shortage of meat to job losses in key markets such as Zimbabwe as well as other constraints, such as food imports and rising infrastructure costs. Average regional sales growth for quick serve businesses such as those running fast food counters for KFC, Nando's, Chicken Inn and pizza restaurants stands at around 20%, according … [Read more...] about Fresh risks for Africa’s fast food firms
