Full-Service Restaurants in South Africa

PROSPECTS

Economic uncertainty forcing players to adapt to survive

Prevailing economic constraints continued to put additional pressure on full-service restaurants in 2019, as consumers opted for smaller portions and single-course meals due to declining disposable income. Despite a modest improvement in the economy in 2019, the leading chained full-service restaurants slowed down their expansion plans to focus on improving the services in their existing outlets.

New waste management regulations come into force

Environmental engagement is expected to grow to become a key differentiation tool as awareness of global warming and climate change continued to gain momentum across the country. For businesses, the aim will be to improve their social image while attracting environmentally conscious consumers.

Spur launches plant-based menu with vegetarianism and veganism on the rise

Urban customers are becoming increasingly food-curious and more conscious about ethical eating, with more interest being shown in vegetarian and vegan food, for example. This interest has been aroused partly due to the endorsement of international celebrities, with such habits becoming a lifestyle for many as consumers show a growing awareness of animal welfare issues.

COMPETITIVE LANDSCAPE

Spur maintains the lead thanks to diverse portfolio

In 2019, category leader Spur Corp Ltd focused on improving its existing business performance through a multi-strategy approach. In pizza full-service restaurants, the company moved away from discounted offerings in its Panarotti's Pizza chain to focus on promotional campaigns showcasing core family values.

From cannabis to bugs: Innovation is on the menu

As the operating environment becomes increasingly competitive, innovation grew to become a key competitive tool across full-service restaurants. An example could be taken from Col' Cacchio Pizzeria which introduced the first dagga (cannabis) pizza in South Africa in collaboration with africanpure, one of the country’s leading cannabidiol (CBD) brands.

Localisation trend takes root

Emerging local chefs in full-service restaurants such as continued to gain momentum in 2019 by transforming traditional South African cuisine usually found across low-income areas into fine dining meals. This was in line with the localisation trend which has been transforming the local foodservice industry.

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