- 14 new outlets opened in Zim, 17 more in the pipelines for FY2021
- Over 20 more set to be opened in the region
- Customer counts however down 33.7% in Zim and an average of 12.1% in the rest of the region
Zimbabwe’s largest fast food restaurant operator, Simbisa Brands Limited is set to get even larger with plans to open more outlets in FY2021 despite a decrease in customer counts experienced during the financial year ended 30 June 2020 as a result of Inflation, devaluing currencies and COVID 19.
In Zimbabwe, between 30 June 2019 and 30 June 2020, the group opened a total of 14 new outlets bringing the total number of counters in the country to 221 and is planning to open 17 other ones in FY2021 which will take the total number of counters to 238.
Simbisa operates and franchises a selection of well-known Quick Service Restaurant brands which include Pizza Inn, Chicken Inn, Fish Inn, Creamy Inn and Nandos and Steers of South Africa.
The company which is a subsidiary of the Zimbabwe Stock Exchange Listed manufacturing group, Innscor Africa, has an extensive footprint in Africa, with outlets in Zimbabwe and 10 African countries including Kenya, Ghana, Mauritius, Botswana, DRC, Malawi, Swaziland, Lesotho and Zambia.
Despite the new counters being opened however, customer numbers in Zimbabwe dropped by 33.7% as a result of inflation affecting incomes resulting in less and less Zimbabweans eating out.
Regional operations were not spared with overall customer counts declining by 12.1% and overall revenue by 7.1% in inflation adjusted ZWL terms from$6.11b in prior year to $5.67b in FY2020 partly as a result of regional currencies devaluing against the USD.
“These financial results were also impacted by the depreciation of regional currencies which lost significant value against the US dollar. Regional currencies in our major markets outside Zimbabwe depreciated by between 3% and 41% against the United States dollar in the period under review,” said the group’s chairman Addington Chinake.
The group however, had opened 11 new in counters in FY2020 in Kenya bringing the total number of outlets to 152 and there are plans to open 17 more in FY2021- and formed a partnership to drive growth in the delivery business segment, In Zambia 4 new counters were opened in the year and 3 new ones are in the pipeline for FY2021, In Ghana, 4 new counters were opened in FY2020, including an inaugural Chicken Inn Drive Thru to bring the number of counters in this market to 20 and finally There were 3 new counters opened in DRC Kinshasa.
Equity Axis News.