Four reasons why fast food franchises are on the rise in SA

Johannesburg- The fast food and quick service sector in South Africa is showing steady growth, despite the tough economic climate, according to research by FNB Business.

“Despite the intense competition for food franchising, this sector has exceptionally demonstrated that franchising remains one of the sectors that needs to be thoroughly explored to grow the economy and create job opportunities”, Andre Beck, Sector Head: Fast Food and Restaurants at FNB Business said in a statement on Thursday.

Data by the Franchise Association of South Africa (FASA) shows that the franchising market is worth R587bn, approximately 13% of the country’s Gross Domestic Product (GDP).

Offer healthy food

Customers are increasingly mindful of what they eat and want transparency around the ingredients in fast food outlets. According to FNB Business, health centric franchise brands, such as Kauai are penetrating the market.

Delivery speed

With the number of food delivery apps on the rise in SA, fast food franchises use technology to ensure orders reach customers quickly

Free delivery

A rising number of fast food outlets offer free delivery as consumers increasingly try  to pack in more into their days.

Month end peaks

A family trip to a fast food outlet, month end, after pay day has become a habit for many households. Franchises see a rise in revenue during these periods.