Simbisa targets more high-density areas

ZIMBABWE’S largest fast-food restaurant operator, Simbisa Brands is focusing on opening more outlets in “under-serviced areas” this year, chairman Addington Chinake said, as the company seeks to defend its market share amid growing competition.

The areas include high-density suburbs as well as smaller towns where the group still has a limited presence.

The development also comes as more fast food outlets are emerging across the country, especially in the high-density areas as well the city and town centres across the country.

Previously, Simbisa, which owns restaurant chains including Pizza Inn and Chicken Inn, as well as franchises for Nandos and Steers of South Africa occupied the larger part of the fast food retail space and targeted middle to higher-income customers. However, the fast-food retail landscape has changed, with several outlets emerging, producing fries to pizza, targeting low-income earners.

Simbisa has already experimented with branches in Dzivaresekwa and Machipisa with its household–Chicken Inn brand, which appeals more to lower-end customers.

“Particular attention will be paid to penetrating the market in areas currently underserviced by our brands, particularly in small towns and high-density areas,” Mr Chinake in an update on the group’s strategic focus. He said the group had lined up several delivery channels such as “Drive-Thrus” for its brands in Zimbabwe and Kenya.

Mr Chinake said the concept of the drive-through, currently being implemented with the
Chicken Inn brand would be explored for other brands like Nandos and Steers.

Zimbabwe and Kenya are Simbisa’s more developed markets, where 75 outlets will be
opened.

Simbisa has so far spent US$4,5 million of the US$15,5 million the company aims to
invest under its expansion programme, its chief executive Mr Warren Meares said
recently.

In both markets, initiatives in 2023 will focus on improving order and bike tracks,
thereby reducing delivery times and improving customer experience.

“Zimbabwe and Kenya, are focused on increasing revenue streams through delivery
channels and growing the market share through new store openings,” said Chinake.

“There are 75 new store openings in the pipeline in Zimbabwe and Kenya alone for 2023.

Several Chicken Inn Drive-Thrus are in the pipeline as this has proved a value-accretive
brand concept. In Zimbabwe, the group is exploring introducing the Drive-through
concept for other brands such as Nandos and Steers,” he added.

Mr Chinake said for the group to bolster delivery revenue streams in Zimbabwe, the focus
would be on increasing delivery capacity through scaling operations across the country
by acquiring more bikes and increasing the number of call centre agents.

He added a strategic decision was also made to transition Pizza Inn to deliver exclusively
on the Dial-a-Delivery platform in Kenya starting on September 1, 2022.

This will allow the group to maintain dominance against third-party delivery services
and competitors.

As for the other regional markets, the group will focus on consolidating and developing
existing shops to generate growth from the existing capacity, said Chinake.

The new store development will be selective, with only the “best possible” sites to be
considered.
Presently, eight such sites have been identified.
“Making improvements to the delivery businesses in these markets remains a key
priority.
“We will (also) continue to carefully assess and execute the pricing strategy adopted in
the current financial period to hedge against high inflation and exchange rate weakness
while remaining sensitive to customer affordability,” he said.-The Herald