By Malcolm Meja
FAST food chain operator, Simbisa Brands, is looking to expand into the casual dining space after it recorded a 5% customer count decline in Zimbabwe.
The Chicken Inn operator says it has identified significant market opportunities within its existing markets and food triangle for casual dining brands in the region and beyond.
In a recent analyst presentation for the year ended June 2019, Simbisa said it would leverage its existing infrastructure to pursue opportunities to add casual dining brands to its portfolio. The firm reiterated that this new development would fit well into its existing business model and provide value to both customers and shareholders.
“African markets are developing and expanding, middle income demographic is continually growing, with increasing levels of disposable income, greater levels of diaspora have created awareness for different foods, tastes and restaurant experiences” read the presentation.
Despite the new ventures, Simbisa’s key strategic objective will be to continue growing its core Quick-Service Restaurant (QSR) business, in existing and new African markets.
In comparison to year ended June 2018, Simbisa’s customer count in Zimbabwe went down by -5% for the period under review, as a result of an erosive customer spending power caused by the volatile economic conditions. Despite a drop in customer spending, it opened 17 new stores in Zimbabwe.
Simbisa’s group profit before tax was ZW$49.8 million for the period under review, a 148% increase from last year’s ZW$20.1 million.