HARARE – Despite Zimbabwe’s ongoing economic difficulties, Simbisa Brands, the country’s largest fast-food chain, continues to grow its presence across the region, showcasing resilience and adaptability in a tough operating environment.
According to a report by NewZWire, Simbisa opened a net total of 38 new counters between December 2023 and December 2024, with 16 of these added in just the last six months. The company shows no signs of slowing down, with plans to launch an additional 10 outlets by June 2025. This expansion underscores Simbisa’s commitment to maintaining its dominance in the fast-food industry, even as consumers grapple with declining disposable incomes.
In the six months leading up to December 2023, Simbisa served 24.8 million customers, a 7% increase compared to the same period the previous year. However, the company faced a 3% decline in average spending per customer, a reflection of the economic pressures faced by consumers. In response, Simbisa has strategically lowered some of its prices to remain accessible to its customer base.
Adapting to the 1% Fast Food Tax
Simbisa is also contending with the government’s recently introduced 1% fast food tax, a measure that has added another layer of complexity to its operations. The company has stated that it is actively developing strategies to mitigate the tax’s impact on menu prices while safeguarding its profit margins.
“The Group is working on solutions to minimise the impact on menu prices whilst preserving margins. These include enhancing supply chain efficiencies and engaging suppliers on raw material prices,” Simbisa said in a recent statement.
This proactive approach highlights Simbisa’s ability to navigate regulatory changes and economic headwinds, ensuring that it remains competitive without alienating its customer base.
Broader Implications for the Retail Sector
Simbisa’s expansion comes at a time when Zimbabwe’s retail sector is facing significant challenges, including currency instability, rising inflation, and reduced consumer spending power. The company’s growth trajectory stands in contrast to the struggles faced by other retailers, such as OK Zimbabwe, which recently reported a 3% decline in revenue for the third quarter of 2023.
Industry analysts suggest that Simbisa’s success lies in its ability to adapt to changing market conditions, maintain operational efficiency, and offer affordable options to consumers. However, questions remain about the sustainability of this growth, particularly if economic conditions worsen or disposable incomes continue to shrink.
