Fast-food giant Simbisa Brands Limited is accelerating its delivery business, expanding its store network and doubling down on solar energy investments as regional fuel price shocks and inflationary pressures reshape the economics of the restaurant industry across Southern Africa.
Group chief executive, Mr Basil Dionisio, said the business had continued to attract customers despite a difficult operating environment marked by rising fuel costs linked to geopolitical tensions in the Middle East.
“Consumer demand remained resilient during the quarter, supported by currency stability, favourable weather conditions and strong commodity prices across key operating markets,” Mr Dionisio said in the group’s third quarter trading update.
While many consumer-facing businesses across the region have struggled with slowing discretionary spending, Simbisa, which operates brands including Chicken Inn, Pizza Inn and Bakers Inn, appears to be benefiting from aggressive value promotions and changing eating habits increasingly driven by convenience and delivery culture.
The company reported that delivery volumes in Zimbabwe surged 83 percent during the quarter, while Kenya recorded a 71 percent jump in deliveries compared to the same period last year.
The sharp rise highlights how digital ordering and home delivery are becoming central to fast-food growth strategies in African cities, where younger consumers increasingly favour app-based convenience.
“Performance in the delivery segment remained particularly strong, with delivery volumes increasing by 83 percent in Q3 full year 2026 compared to the prior year, supported by a growing delivery fleet and improved zoning efficiencies,” Mr Dionisio said.
The delivery boom comes as urban consumption patterns continue to evolve across the region, with businesses racing to capture demand from digitally connected consumers seeking affordability and convenience.
Simbisa said delivery operations in Kenya were now averaging approximately 6 000 deliveries per day, with delivery contribution in key brands nearing the group’s long-term target of 30 percent of total market turnover.
But behind the strong customer growth story lies mounting pressure on profitability.
The company warned, “The quarter had been characterised by heightened cost pressures following significant increases in fuel prices from February 2026.”
Those increases, according to the company, were triggered by global oil supply disruptions associated with ongoing Middle East tensions.
The rising fuel bill is proving particularly painful for restaurant operators that depend heavily on logistics, refrigeration, transportation and backup power systems.-herald
