SA fast food franchising on the rise 

The fast food and quick service restaurant sector in SA contributes 13 percent to GDP.

With a contribution exceeding 29 percent, South Africa’s quick service restaurant (QSR) sector 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, approximately 13.3 percent of the South African Gross Domestic Product (GDP).

Andre Beck, Sector Head: Fast Food and Restaurants at FNB Business, says:

“Industry data shows that South Africa has seen more franchises opening fast food and restaurant outlets in spite of the floundering economy. This clearly paints a picture of a sector that is competitive and lucrative, and more importantly, it shows that the franchising has sustained appetite to grow further in the local economy.”

He highlights some trends in this sector:

  • Healthy food: Customers are mindful of what they consume more than before; they want to know which ingredients have been used to prepare their food. As a result, health-centric franchise brands are penetrating the market.
  • Speed of delivery: Using technology to effectively serve customers; more fast food franchises have made it possible for customers to use mobile apps and other digital tools to receive their orders quickly.
  • Free delivery: In this extremely busy environment, businesses have understood the power of bringing business to the customer’s doorstep.
  • Month end peaks: A lot of consumers tend to visit food outlets during month-end to buy or eat with their families.

“Despite the intense competition for food franchising, this sector has exceptionally demonstrated that franchising remains one of the sectors that needs to be thoroughly explored to grow the economy and create job opportunities,” Beck concludes.