Fast food and take aways in SA
Growing trend in Fast food in South Africa
The enduring popularity of fast food among the South African population combined with the growing trends towards convenience and value for money to form the key factors underpinning growth in fast food in South Africa during 2013. Although the economic environment in the country remained challenging throughout the year, the leading operators in fast food redoubled their efforts to offer food items across the widest possible range of price points, with many offering meal options at certain times of the day including breakfast, snacking, lunch and dinner. This represented a move away from the traditional focus on traditional lunch and dinner items in fast food in South Africa. The channel’s leading players are also in the process of offering smaller food items on their menus, including smaller sized pizzas, which they are in turn able to sell at lower price points than more traditional larger items.
Brands of fast food chains in South Africa
KFC remained the leading fast food brand in South Africa in 2013 with a value share of 24%. The brand is distributed through various franchisees at national level, and owned at global level by Yum! Brands Inc. Yum! Brands is also the leading global brand owner in fast food in South Africa and also maintained a 24% value share in the channel in 2013.
Fast food in South Africa is a consumer foodservice channel which is slowly maturing in relation to other consumer foodservice channels in South Africa. Furthermore, in light of the challenging economic climate which is expected to prevail in South Africa over the forecast period, growth rates in fast food are expected to be relatively modest in comparison with the growth rates recorded in the category during the review period.
Increasing demand for take away
The increasing demand for convenient and quick food options and rapid service among South African consumers remained the main factor driving growth in 100% home delivery/takeaway in South Africa during 2013.
During 2013, Taste Holdings Ltd remained the leading player in 100% home delivery/ takeaway in South Africa with a value share of 33%. Butlers Pty Ltd maintained its second position in value terms with a 2% value share. The competitive landscape in the category remained virtually unchanged throughout the review period, although each of these two leading companies lost slight value share at the beginning of the economic downturn in late 2008 and into 2009. The leading brands in 100% home delivery/ takeaway in 2013 were Taste Holdings’ Scooters brand with a 33% value share and the Butlers brand with 2%. The remainder of the category remains highly fragmented, with value sales split among a large number of brands and operators.
100% home delivery/takeaway is expected to experience strong competition from other consumer foodservice channels during the forecast period as consumer foodservice operators which have not historically offered delivery or takeaway services are increasingly adding these services to their business models in order to take full advantage of the growing trend for convenience among South African consumers. The companies which have traditionally operated exclusively in 100% home delivery/takeaway are also likely to increasingly face strong competition from food delivery concierge services such as Mr Delivery, which offer consumers the added benefit of being able to order from a very wide range of food and cuisine.