The Restaurants, Fast Food and Catering Industry
Lockdowns, supply chain constraints, unrest and load-shedding have had devastating consequences for South Africa’s restaurant, fast food and catering industry. Forced closures during hard lockdown and restrictions since, including reduced trading hours, alcohol bans and limits on the number of patrons have resulted in ongoing challenges. While fast food franchises have been relatively resilient, independent restaurants, coffee shops and fine dining restaurants have been significantly affected, and the catering industry has come to a standstill.
Claims and losses
As revenue dried up, many restaurants across the country closed down, including some well-known restaurants. Some establishments filed business interruption claims with insurers due to pandemic-related losses. Several insurers rejected claims, arguing that the losses were not caused by local occurrences of a notifiable disease within 40km of the business premises but to lockdown, the government and general public response to the pandemic. Policyholders sued and the Supreme Court of Appeal found in favour of the policyholders.
Restaurant and Consumer Trends
Technology and innovation continues to drive the industry. These include increasingly convenient online ordering options, more delivery options and dark kitchens, which prepare online food orders at centralised production facilities. Consumer lifestyle habits, shopping behaviour and food consumption patterns have changed and people are spending more time at home, ordering online, dining out nearer to home and reducing visits to malls. The challenging trading conditions have forced restaurants to cut costs, streamline menus and use innovative marketing strategies and brand loyalty programmes.
This report focuses on the restaurants, fast food and catering industry, including information on the size of the sector, revenue and market share by type of outlet, developments and corporate actions. There are profiles of 53 companies including major players such as Famous Brands and Spur Corporation, fast food franchises such as KFC, Simply Asia and Kauai and catering companies including Bidvest Catering Services and Main Event Catering.