Famous Brands expands Drive-Thrus, delivery formats amid challenging market conditions

AFTER sinking R214 million into expanding and maintaining its quick serve restaurants in the past year, Famous Brands will invest more into Drive-Thru offerings and smaller delivery formats to meet consumer demands at a time revenues have been squeezed.

- TAWANDA KAROMBO

Over the 12 month period to the end of February 2025, Famous Brands - which franchises and operates Debonaires Pizza, Steers, Wimpy and other counters - was affected by increased competition in the food industry and deteriorating infrastructure such as electricity and water.

Famous Brands now expects low growth and low consumer discretionary spend within the South African market.

However, it foresees tailwinds that include lower inflation, further interest rate cuts, improved business and investor confidence and a better national energy security in the outlook.

"Economic headwinds in South Africa have significantly curtailed consumer spending. This means consumers prioritise essential spending and seek value for money," said Darren Hele, CEO of Famous Brands on Monday.

"Competition remains fierce, with increasing advertising activity and a higher frequency and depth of value deals and promotions."

Hele also said the South African business landscape now favours franchised brands over independent restaurants.