Finding the fat in the restaurant business
Load-shedding has driven people to more takeaways, but the outlets are run at a huge cost which means there’s little to take home at the end of the month. The size of the entire SA consumer food service sector is estimated at R102bn annually and has grown 24% y.o.y. Quick Service Restaurants have been the highest contributor (estimated at R43bn in 2022), and this is expected to continue as a result of current consumer trends. Take-outs form nearly 60% of the QSR market value. But 2023 will remain tough with higher levels of load shedding, property rental increases, supply chain issues, and inflation.