Who Owns Whom

The Restaurants, Fast Food and Catering Industry

Natalie Bryden | South Africa | 28 October 2021

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.

Report Coverage

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.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 11
4.1. Local 11
4.1.1. Corporate Actions 15
4.1.2. Regulations 16
4.1.3. Enterprise Development and Socio-Economic Development Initiatives 20
4.2. Africa 22
4.3. International 25
5. INFLUENCING FACTORS 31
5.1. COVID-19 31
5.2. Unrest 34
5.3. Government Intervention 34
5.4. Economic Environment 35
5.5. Rising Input Costs 35
5.6. Technology, Research and Development (R&D) and Innovation 36
5.7. Retail Developments 38
5.8. Cyclicality 38
5.9. Labour Resources 39
5.10. Environmental Concerns 44
5.11. Advertising and Marketing 45
6. COMPETITION 45
6.1. Barriers to Entry 47
7. SWOT ANALYSIS 48
8. OUTLOOK 49
9. INDUSTRY ASSOCIATIONS 51
10. REFERENCES 51
10.1. Publications 51
10.2. Websites 49
APPENDIX 1 51
Summary of Notable players 51
COMPANY PROFILES 60
Adega Restaurants CC 60
Air Chefs (SOC) Ltd 62
Anat Foods (Pty) Ltd 64
Andiccio 24 Head Office CC 66
Applecart Properties 42 (Pty) Ltd 68
Bidvest Catering Services (Pty) Ltd 69
Burger Bistro Franchising (Pty) Ltd 71
Chickenland (Pty) Ltd 73
CSG Food Solutions (Pty) Ltd 75
Dulce Milkwood (Pty) Ltd 77
Eclectic Brands (Pty) Ltd 79
Empact Group (Pty) Ltd 82
Famous Brands Ltd 85
Feedem Group (Pty) Ltd 91
Fournews Developments (Pty) Ltd 93
Golden Fried Chicken (Pty) Ltd 97
Grand Parade Investments Ltd 100
Hentiq 2517 (Pty) Ltd 104
Hot Dog Cafe (Pty) Ltd 106
Hungry Lion Fast Foods (Pty) Ltd 108
Imperium Franchise Holdings (Pty) Ltd 110
Kauai Juice (Pty) Ltd 113
KFC (Pty) Ltd 114
King Pie Holdings (Pty) Ltd 117
KK Doughnuts SA (Pty) Ltd 120
Krugkor Franchise (Pty) Ltd 123
Laudian Franchise Management One (Pty) Ltd 126
Le Fera (Pty) Ltd 128
Main Event Catering (Pty) Ltd 130
Mochachos Franchise Management (Pty) Ltd 132
MSA Devco (Pty) Ltd 135
OBC Group (Pty) Ltd 138
Ocean Basket Franchise Company (Pty) Ltd 141
Open Food Group (Pty) Ltd 144
Par-Avion (Pty) Ltd 146
Pie City Holdings (Pty) Ltd 148
Pizza Hut (Pty) Ltd 150
Primi World (Pty) Ltd 152
Retsol Stores (Pty) Ltd 154
Roman's Pizza (Pretoria) (Pty) Ltd 157
Sandwich Baron Franchising CC 160
Seattle Coffee Company (South Africa) (Pty) Ltd 162
Simply Asia Franchise Holdings (Pty) Ltd 165
Sodexo Southern Africa (Pty) Ltd 168
Source Food Catering and Events (Pty) Ltd 170
Spur Corporation Ltd 171
Streamline Brands (Pty) Ltd 176
Sumptuous Caterers (Pty) Ltd 179
Tsebo Solutions Group (Pty) Ltd 181
View Rock Trading (Pty) Ltd 185
Why Cook (Pty) Ltd 187
Wiesenhof Coffee Roastery (Pty) Ltd 189
Xantium Trading 471 (Pty) Ltd 192