Full-Service Restaurants in South Africa

PROSPECTS

Full-service restaurants look to tap into demand for delivery services

Full-service restaurants are expected to increasingly focus on delivery services in order to tap into rising demand for quick and convenient food options. This move has already been taken by RocoMamas, which over the review period added takeaway counters to its restaurants.

North American chained full-service restaurants set to gain ground

The strong equity of brands like Spur, which has benefited from extensive loyalty programmes over the years, will continue to support the category’s performance. Likewise, new concepts like Brocka, which have incorporated food truck services into shopping environments, are also likely to help drive the category’s sales.

Asian full-service restaurants predicted to post the strongest growth over the forecast period

Both independent and chained Asian full-service restaurants are expected to benefit from increasing tourism as the South African government has simplified travel arrangements for those in Asian countries, which are becoming a major source of tourism for South Africa. Likewise, changing lifestyles, with dishes like sushi becoming aspirational treats, will also support the category’s growth.

COMPETITIVE LANDSCAPE

RocoMamas and the rise of the cashless restaurant

Introduced in 2013 with only three branches and acquired in 2015 by Spur Corp, RocoMamas has become one of the fastest growing chained full-service restaurants in South Africa. The brand has successfully incorporated both gourmet and fast food, targeting millennials and Generation Z through its trendy image.

Chained pizza full-service restaurants do away with discounts

As competition has intensified, discount promotions have been increasingly used to attract price-sensitive consumers. Although this helped to increase the number of transactions per outlet, it also served to slow value growth.

Test Kitchen leads the way in adapting to the drought in Western Cape

In the midst of one of the biggest ever droughts faced by South Africa, in 2018 Western Cape province was increasingly challenged by falling dam levels, leading to the authorities contemplating “Day Zero” and turning off the water supply to homes and businesses during the first quarter the year. As the crisis unfolded, Test Kitchen replaced its plates with wooden frames covered with interchangeable coated card which does not absorb liquid.

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