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South Africa - The Future of Foodservice to 2021

South Africa - The Future of Foodservice to 2021

Summary

South African economy has seen significant growth in recent years. The economy is however being held back by high unemployment and high rates of inflation. The South African Rand (ZAR) is forecast to continue to slide against the US dollar, eroding the purchasing power of consumers. Income in South Africa is distributed extremely unequally amongst different demographic groups and geographic locations. There are a number of extremely affluent suburbs on the outskirts of major cities that are prime locations for foodservice operators.

Despite the state of the wider economy, total profit foodservice sector revenue grew at a CAGR of 2.5% between 2014 and 2016, this growth is forecast to continue to 2021 at a CAGR of 2.6%.

Quick service restaurant (QSR) channel dominated the South African profit foodservice sector in 2016, accounting for over 50% of revenue in profit foodservice. The QSR channel saw a CAGR of 2.4% between 2014 and 2016 and this rate of growth is forecast to continue to 2021. Revenue growth in the channel is being driven to a greater extent by growth in transaction numbers than growth in outlet numbers.

Full Service Restaurants (FSR) is expecting to see a CAGR of 2.1% until 2021, making a channel value of ZAR 31.6 Billion. This will be driven mostly by a growing middle class who is eager to enjoy experiences above and beyond QSR. Growth in the channel is expected to continue, however some pressure will remain, especially for operators targeting consumers with lower incomes. Maintaining promotions and loyalty scheme will help appeal to value driven consumers. However, overall the environment is expected to become more hospitable over the next 5 years as the economy begins to gain momentum and the growing middle class look to enjoy themselves.

The report South Africa - The Future of Foodservice to 2021 provides extensive insight and analysis of South Africa’s Foodservice market over the next five years (2015-2020) and acts as a vital point of reference for operators or suppliers.

In particular, this report provides the following -

  • Overview of South Africa’s macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on the South African foodservice market including GDP per capita, consumer price index, population growth and annual household income distribution.
  • Growth dynamics: In-depth data and forecasts of key channels (QSR, FSR, Coffee & Tea Shops, Pubs, Clubs and Bars) within the South African foodservice market, including the value of the market, number of transactions, number of outlets and average transaction price.
  • Customer segmentation: Identify the most important demographic groups, buying habits and motivations that drive out-of-home meal occasions among segments of the South African population.
  • Key players: Overview of market leaders within the four major channels including business descriptions and number of outlets.
  • Case Studies: Learn from examples of recent successes and failures within the South African foodservice market.
Companies mentioned in this report: Col'Cacchio, Debonairs Pizza, Doppio Zero, Famous Brands, Gold Brands, KFC, McDonald's Corporation, Mugg & Bean, Nando's, RocoMamas, Seattle Coffee Co., Spur Corporation, Steers, Taste Holdings, Vida e Caffe, Wiesenhof Coffee, Wimpy, Yum! Brands.

Scope
  • Consumers are reporting caution concerning their futures, helping to drive growth in the already successful QSR channel. The arrival of fast-casual formats and brands is helping to drive this, creating a higher end destination for the young population.
  • Social and economic divides continue to play an important role in the foodservice market, with distinct consumer trends apparant between them.
  • The success of loyalty schemes, promotions and offers will continue to drive growth in chains across all channels in the growing economy. However, inflation will put continued pressure on the lower classes, while also encourage the use of local ingredients.
Reasons to buy
  • Specific forecasts of the South African foodservice market over the next five years (2016-2021) will give readers the ability to make informed business decisions through identifying emerging/declining markets.
  • Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR, Coffee & Tea shops, Pubs, Clubs and Bars) will allow readers understand the wants and needs of their target demographics.
  • Relevant case studies will allow readers to learn from and apply lessons discovered by emerging and major players within the South African foodservice market.


  • Introduction
    • Report Guide: Main Sections
    • Report Guide: Sub-Sections
    • Executive Summary
    • Executive Summary: Consumer Trends
  • Macroeconomic context
    • Macroeconomic Overview
    • Demographic Overview: Population
    • Demographic Overview: Income Bands
  • Introducing consumer segments
    • Introducing Consumer Segments: Constructing the Segments
    • Introducing Consumer Segments
    • Introducing Consumer Segments: Frugal Convenience-Seekers
    • Introducing Consumer Segments: Time-Poor Experimenters
    • Introducing Consumer Segments: Sporadic Splurgers
    • Introducing Consumer Segments: Regimented Routiners
    • Introducing Consumer Segments: Inbetweeners
    • Introducing Consumer Segments: Key Channel Overview
  • Profit sector
    • Profit Sector Metrics
      • Table Growth to continue at historic levels
    • Profit Sector: Value and Share by Channel
    • Profit Sector: Value Growth by Channel
    • Profit Sector: Outlets and Growth by Channel
    • Profit Sector: Transactions and Growth by Channel
    • Profit Sector: Operator Buying Volumes and Growth by Channel
    • Profit Sector: Channel Historic Growth Dynamics
    • Profit Sector: Channel Future Growth Dynamics
    • Profit Sector: Restaurant: Outlet-Type Growth Dynamics
      • Table Restaurant outlet types 2016 value growth
    • Profit Sector: Restaurant: Type of Ownership Growth Dynamics
      • Table Restaurant owner types 2016 value growth
  • Quick service restaurants (QSR)
    • QSR: Summary
    • QSR: Metrics: Growth Dynamics
      • Table QSR growth is consistent. Growth is being driven by an increase in overall transaction numbers
    • QSR: Key Players
    • QSR: Key Consumers: Segment Overview
    • QSR: Key Consumers: Frugal Convenience Seekers
    • QSR: Key Consumers: Time-Poor Experimenters
    • QSR: Key Consumers: Sporadic Splurgers
    • QSR: Key Consumers: Regimented Routiners
    • QSR: Key Consumers: Inbetweeners
    • QSR: Key Consumers: Opportunity Areas
    • QSR: Why?
    • QSR: What?
    • QSR: What?: Food and Drink Splits
      • Table Operator buyer product value ZAR million (USD$ million)
    • QSR: Where?
    • QSR: What Next?
  • Full service restaurants (FSR)
    • FSR: Summary
    • FSR: Metrics: Growth Dynamics
      • Table FSR to continue enjoying steady growth at historic levels
    • FSR: Key Players
      • Table Spur Corporation continues to diversify portoflio
      • Table Famous Brands struggles with falling outlets in casual dining sector
    • FSR: Key Consumers: Segment Overview
    • FSR: Key Consumers: Frugal Convenience Seekers
    • FSR: Key Consumers: Time-Poor Experimenters
    • FSR: Key Consumers: Sporadic Splurgers
    • FSR: Key Consumers: Regimented Routiners
    • FSR: Key Consumers: Inbetweeners
    • FSR: Key Consumers: Opportunity Areas
    • FSR: Why?
    • FSR: Why: Spur Corporation Case Study
    • FSR: Why?: What trends does the company target?
    • FSR: Why?: What does the company do to target these?
    • FSR: What?
    • FSR: What?: Food and Drink Splits
      • Table Operator buyer product value ZAR million (USD$ million)
    • FSR: Where?
    • FSR: Where?: Nando's
    • FSR: Where?: What trends did the company target?
    • FSR: Where?: What did the brand/company do to target this?
    • FSR: What Next?
  • Coffee and tea shops
    • Coffee & Tea Shops: Summary
    • Coffee & Tea Shops: Metrics: Growth Dynamics
      • Table Growth in transactions to push sales value to ZAR 3.8 billion
    • Coffee & Tea Shops: Key Players
    • Coffee & Tea Shops: Key Consumers: Segment Overview
    • Coffee & Tea Shops: Key Consumers: Frugal Convenience Seekers
    • Coffee & Tea Shops: Key Consumers: Time-Poor Experimenters
    • Coffee & Tea Shops: Key Consumers: Sporadic Splurgers
    • Coffee & Tea Shops: Key Consumers: Regimented Routiners
    • Coffee & Tea Shops: Key Consumers: Inbetweeners
    • Coffee & Tea Shops: Key Consumers: Opportunity Areas
    • Coffee & Tea Shops: Why?
    • Coffee & Tea Shops: What?
    • Coffee & Tea Shops: What?: Food and Drink Splits
      • Table Operator buyer product value ZAR million (USD$ million)
    • Coffee & Tea Shops: Where?
    • Coffee & Tea Shops: What Next?
  • Pubs, clubs and bars
    • Pubs, Clubs & Bars: Summary
    • Pubs, Clubs & Bars: Metrics: Growth Dynamics
      • Table Growth in the channel is being driven by growth in average transaction values
    • Pubs, Clubs & Bars: Key Consumers: Segment Overview
    • Pubs, Clubs & Bars: Key Consumers: Frugal Convenience Seekers
    • Pubs, Clubs & Bars: Key Consumers: Time-Poor Experimenters
    • Pubs, Clubs & Bars: Key Consumers: Sporadic Splurgers
    • Pubs, Clubs & Bars: Key Consumers: Regimented Routiners
    • Pubs, Clubs & Bars: Key Consumers: Inbetweeners
    • Pubs, Clubs & Bars: Key Consumers: Opportunity Areas
    • Pubs, Clubs & Bars: Why?
    • Pubs, Clubs & Bars: What?
    • Pubs, Clubs & Bars: What?: Food and Drink Splits
      • Table Operator buyer product value ZAR million (USD$ million)
    • Pubs, Clubs & Bars: Where?
    • Pubs, Clubs & Bars: What Next?
  • Cost sector
    • Cost Operator Trends: Historic Growth
    • Cost Operator Trends: Future Growth
    • Cost Operators: Data Breakdown
      • Table The education channel dominates the cost sector with almost 75% of OBP value
  • Education
    • Education: Growth Dynamics & Drivers
      • Table Education historic and future value growth
    • Education: What Next?
  • Healthcare
    • Healthcare: Growth Dynamics & Drivers
      • Table Healthcare historic and future value growth
    • Healthcare: What Next?
  • Military and civil defense
    • Military and Civil Defense: Growth Dynamics & Drivers
      • Table Military and Civil Defense historic and future value growth
    • Military and Civil Defense: What Next?
  • Welfare and services
    • Welfare & Services: Growth Dynamics & Drivers
      • Table Welfare and services historic and future value growth
    • Welfare & Services: What Next?
  • Appendix
    • Trade and Sectors Definition
    • Channel Definitions
    • Other Definitions
    • Key Components - Market Intelligence

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