Simbisa targets accelerated network expansion

Simbisa Brands, a Zimbabwean quick-service restaurant operator with presence across the region, is set to accelerate its expansion and customer experience enhancements before the end of the group’s June 30 fiscal year.

According to Basil Dionisio, group chief executive officer, the group remains unwavering in its commitment to elevating the customer experience, with store refurbishments playing a central role in modernising the group’s old outlets.

Mr Dionisio noted that the pipeline will see four new trading counters launched in the final quarter of 2025, followed by an ambitious development plan in 2026, comprising 53 new outlets and 56 refurbishments across Zimbabwe, Kenya and Eswatini.

Facing persistent inflation and recent tax adjustments, the group is sharpening its focus on cost efficiency.
“Our priority is optimising our supply chain through strategic supplier partnerships to secure sustainable input cost savings,” Mr Dionisio said, underscoring the company’s drive to protect margins.

He added that a robust agricultural season in Zimbabwe should deliver additional margin relief.
Since March 31, 2024, Simbisa has expanded its footprint with a net addition of 20 counters, 10 company-operated and 10 franchised, bringing the total to 722 outlets by quarter-end.

However, Mr Dionisio emphasised that the modernisation of the existing stores through targeted refurbishments remains critical, noting that the short-term pace of new openings was moderated to prioritise upgrading older sites.

Simbisa Brands delivered a resilient performance in the third quarter of financial year 2025, navigating inflationary pressures and shifting customer behaviours.

“Our four percent year-on-year revenue growth in Q3 reflects a disciplined approach to balancing value and experience, even as customer counts edged down,” said Mr Dionisio.

Underpinned by a seven percent increase in real average spend, partially offset by a three percent decline in footfall, the group’s total revenue for the nine months rose six percent, supported equally by gains in customer counts and spend.

In Zimbabwe, revenue grew one percent year on year in the third quarter, driven by a one percent lift in average spend against flat footfall of 11,2 million customers. Year-to-date customer counts climbed six percent, aided by organic store growth and promotions, even as the network saw a net eight-counter expansion.

During the quarter, Simbisa closed eight underperforming counters and opened two new ones, finishing with 333 trading outlets.

Amid rising energy, fuel and tax costs, including the Intermediate Money Transfer Tax, Mr Dionisio affirmed that rigorous cost-management measures, from energy efficiency to streamlined staffing, are being deployed to safeguard margins.

Kenya delivered a standout 13 percent revenue surge in the quarter under review, powered by a 25 percent jump in average spend despite a 10 percent drop in visits. For the nine months, revenue rose 15 percent on the back of the same spending growth, as high inflation and employment headwinds dampened foot traffic.

In response, Simbisa rolled out more affordable value-meal options to meet heightened price sensitivity. The Kenyan network expanded by two counters to 251, with five refurbishments completed.

Mr Dionisio observed that “Procurement efficiencies and local currency stability helped bolster gross margins, allowing the group to maintain quality and cost control even with softer traffic.

In Eswatini, US-dollar turnover was flat in the third quarter and down two percent year-to-date, with an eight percent decline in customer counts over nine months and a three percent dip in the quarter.
Despite these headwinds, a three percent rise in real spend in the period under review and a seven percent year-to-date gain and gains in cost of sales and productivity drove stronger operating profitability.

“Our focus on lean operations and enhanced staffing structures has underpinned resilient margins in challenging markets,” said Mr Dionisio.

Looking ahead, the group remains committed to enhancing service delivery and customer experience.
“We will continue to innovate our menu, optimise delivery channels and drive value-led campaigns to support footfall growth,”he said.

In parallel, Simbisa is piloting hybrid solar-electric systems in select Zimbabwean outlets and, as of February 2025, had completed its transition to 100 percent paper-based packaging.

Mr Dionisio also reaffirmed Simbisa’s commitment to sustainability.
With this blend of expansion, innovation and sustainability, Simbisa aims to solidify its market leadership and deliver shareholder value.

“Sustainability remains at the heart of our strategy as we seek to deliver long-term value for shareholders and communities alike,” he said.-herald