Famous Brands lifted by easing inflation, rate cuts and return-to-office recovery

RESTAURANT group Famous Brands says it is beginning to benefit from improving South African economic conditions, including interest rate cuts, easing inflation, and a rise in foot traffic as more employees return to offices — despite ongoing pressure on consumers from high unemployment and rising household debt.

- TAWANDA KAROMBO

FAMOUS Brands, which operates over 3,000 restaurants in South Africa and 19 other countries including the UK, reported a 5.6% increase in revenue to R4.2 billion for the half year ended August 2025.

(KAREN SANDISON Independent Newspapers)

Darren Hele, CEO of Famous Brands, said on Wednesday that South African “consumer spending is constrained due to high unemployment, household indebtedness, and elevated inflation” in recent years.

Moreover, the online betting and gambling industry was also increasingly competing for a share of consumers’ discretionary spend.

Nonetheless, Famous Brands is seeing strong tailwinds that include “easing inflation, interest rate cuts and increased return-to-office traffic” which is “boosting restaurant” activity although basket sizes remain under pressure.

This was mainly because of depressed consumers continuing to seek value in an increasingly competitive environment. This includes “competition from supermarket retailers’ rapid delivery” offerings that are proving to be popular with consumers.