As South Africa gradually resumed activities in 2021, the slow economic uptake continued to affect employment rates across lower-income groups, and therefore, the performance of street stalls/kiosks targeted this consumer segment. On the other hand, the ongoing remote working trend and temporary closure of schools pressurised revenue from food trucks that often strategically position their services around remote business parks to gain sales.
As new waves of infections emerged, and consumers become increasingly price-sensitive, chained street stalls/kiosks faced intense competition from leading grocery retailers offering similar products at a more affordable price. As a result, operators across the channel continued to diversify their revenue streams to survive the challenging environment.
The pandemic accelerated the adoption of contactless payment services across street stalls/kiosks located in mid- and high-income areas. The trend was supported by greater penetration of QR code services such as SnapScan and Zapper.
An improving economy in South Africa will remain essential to supporting the recovery of street stalls/kiosks, since rising employment rates will boost disposable incomes. On the other hand, the recovery of inbound arrivals will drive demand for food marketplaces such as the old Biscuit Mill in Cape Town, which provides a platform for food trucks and kiosks to showcase their niche cuisines.
Competition amongst chained street stalls/kiosks will remain consolidated between Sausage Saloons and Hot dog Café. However, operators might face greater competition from concepts such as dark kitchens and virtual brands offering similar products at more competitive prices.
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Small, sometimes mobile, foodservice providers characterised by a limited product offering and by low prices. Includes street stalls, street hawkers and foodservice kiosks where food is prepared in some way and served through a hatch or over a display counter to take away. Also includes kiosks and carts located externally or internally eg in shopping malls etc. As a rule, street stalls/kiosks outlets tend to be smaller than 100% home delivery/takeaway outlets, while menus are more limited, often (though certainly not always) with a greater emphasis on snack items, rather than full meals.See All of Our Definitions
This report originates from Passport, our Street Stalls/Kiosks research and analysis database.
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