Simbisa Brands targets 36 new stores in 2025
SIMBISA Brands, a prominent fast-food chain, is strategically aiming to augment its market presence by initiating the launch of 36 new stores next year, alongside the refurbishment of 36 existing outlets across its operational territories, at a cost of US$17.8 million.
The planned expansion encompasses the establishment of 25 new outlets in Zimbabwe, nine in Kenya and two in Eswatini.
In the 12 months to June 30, 2024, a net of 52 new counters were opened in Zimbabwe, with six new counters opened in the final quarter. As at June 30, 2024, there were 332 counters trading in Zimbabwe.
The expansion thrust will be undertaken in tandem with exploring potential strategic raw material sourcing within the Common Market for Eastern and Southern Africa (Comesa) market, which will optimise the supply chain and mitigate some of the external economic pressures.
Simbisa operates popular brands such as Nando’s, Steers, Haefelis, Baker’s Inn, Pizza Inn, Creamy Inn and Chicken Inn.
The entity has an extensive footprint in Africa, with outlets in Zimbabwe, Kenya, Ghana, Mauritius, Botswana, the DRC, Malawi, Swaziland, Lesotho and Zambia.
Group chairman, Mr Addington Chinake, commenting on the group’s financials for the year ended June 30, 2024, said as the entity looks into the future, its strategic priorities include not only expanding its store network but also the modernisation and revamping of existing outlets to enhance customer experience.
“We are targeting to open 36 new stores in FY25 and revamp 36 stores at a total cost of US$17,8 million. Six shops will be closed or rationalised,” said Mr Chinake.
File picture
In addition, he said restructuring of some of the group’s property investments will occur in the financial year ending June 30,2025. To support the expansion phase, the availability of raw materials will be critical.
“Investigations of potential strategic raw material sourcing within the Common Market for Eastern and Southern Africa (Comesa) market are being explored, which will optimise the supply chain and mitigate some of the external economic pressures we face,” he added.
Group chief executive, Mr Basil Dionisio, said Zimbabwe operations achieved revenue growth of six percent in full year 2024 as compared to the prior year, driven by a four percent increase in average spend and a marginal two percent growth in customer counts, a reflection of the subdued consumer activity within the market.
He noted that efforts to increase the revenue contribution from delivery channels is ongoing and the group has leveraged technology to greatly improve the customer experience through continuous evolvement of the Apps and App-exclusive promotions, as well as shortened delivery times through rider and zoning optimisation.
“Simbisa continues to grow its market share in the delivery space without significantly impacting margins by using application-exclusive offers to drive volumes and revenue growth through delivery channels,” said the official.-chrncile
