The Restaurant, Fast Food and Catering Industry in South Africa 2025

This report on the restaurant, fast food and catering industry in South Africa provides comprehensive information on the size and state of the industry, including food and beverage revenue, employment and earnings, expansion, competition, franchising and the latest trends. It explores factors such as tourism, digital transformation, home delivery and takeout, and opportunities for SMEs, and provides details on the largest chains, notable players and corporate actions. There are profiles of 54 companies including major players such as Spur, Chickenland (Nando’s), Famous Brands and KFC, coffee shops such as Seattle and Bootlegger, and catering companies such as Bidvest Catering and Air Chefs.

Challenges

Competition and market saturation. Compliance with regulations. Crime and safety concerns. Demand for healthier, plant-based or sustainable options. Dominance of delivery platforms limits control over customer. Economic pressure and reduced consumer spending. High delivery aggregator commission. Increased sustainability. Labour and skills shortages. Power and water outages and infrastructure instability. Rising operating costs and input price inflation. Technological disruption and adaptation gaps.

Introduction

• The restaurant, fast food and catering industry is dynamic and evolving, contributing billions of rand annually to the economy.
• The industry is driven by urbanisation, rising middle-class demand and the accelerating shift to online ordering and delivery.
• Value-based quick-service formats are growing rapidly.
• Delivery-only and virtual kitchen models are expanding.
• There is increasing focus on sustainability, local sourcing and menu innovation.
• The industry faces significant headwinds, with high input cost inflation, infrastructure disruptions, supply chain pressures, regulatory complexity and intense competition.
• Operators that can leverage technology, control costs, innovate and access underserved markets are expected to outperform.

Opportunities

Catering and institutional food services. Development of digital platforms, delivery and virtual kitchens. Development of health, wellness, and sustainability products and packaging. Expansion into underserved and township markets. Growth of affordable and value segment. Local supply chain and food production. Niche and experiential dining concepts. Regional and African expansion. Training, skills and franchise development.

Outlook

• Continued revenue growth is expected, tempered somewhat by cost pressures and the migration of consumers to more value-for-money segments.
• The fast food/quick-service restaurants sector will likely outpace full-service restaurants.
• Franchise networks are expected to continue expanding, but growth will moderate as prime sites saturate.
• Growth is expected in smaller towns and underserved markets where penetration is lower.
• Players are anticipated to increase technology and delivery platform adoption.
• Larger chains will drive consolidation, brand rationalisation, menu engineering, local sourcing and automation.

Trends

Adoption of digitalisation and technology. Chicken-based fast food is the most rapidly growing segment. Consumer awareness of locally-sourced ingredients, eco-packaging and responsible waste management. Consumer demand for convenience, speed of delivery and value. Consumer expectations of food quality, hygiene and clean service. Declining demand for dine-in meals, or lower-cost options. Delivery is a core sales channel. Demand for healthy, sustainable and diversified menus. Greater emphasis on reviews, social media, word-of-mouth and reputation. Growth led by quick-service restaurants, fast food and takeaway. Increasing prevalence of virtual kitchens.