Published: 21 May 2025

Zimbabwe's leading quick-service restaurant group, Simbisa Brands, is ramping up its expansion and customer experience initiatives in the final stretch of its financial year ending June 30, 2025, with major investments in new outlets, refurbishments, and operational efficiencies.

Group Chief Executive Officer Basil Dionisio said Simbisa remains committed to enhancing customer satisfaction through the modernisation of its stores and improved service delivery. "Our focus is to elevate the customer experience, and refurbishing older stores is a crucial part of that journey," said Mr Dionisio.

In the final quarter of the fiscal year, the group plans to open four new counters, setting the stage for an aggressive rollout in 2026. This includes the launch of 53 new outlets and the refurbishment of 56 existing stores across Zimbabwe, Kenya, and Eswatini.

Despite persistent inflation and tax hikes, the group is reinforcing its cost-efficiency strategy, with supply chain optimisation at the forefront. "We're prioritising strategic partnerships with suppliers to achieve sustainable input cost savings," said Mr Dionisio. A strong agricultural season in Zimbabwe is also expected to provide margin relief.

As of March 31, 2025, Simbisa had expanded its network to 722 outlets, adding 20 counters—split evenly between company-operated and franchised stores. However, Mr Dionisio noted that store refurbishments remain a key priority, even as expansion continues. "We've intentionally moderated the pace of new openings in the short term to focus on modernising our older sites," he said.

Simbisa reported a resilient performance in the third quarter of FY2025, registering four percent year-on-year revenue growth despite reduced customer traffic. This growth was largely driven by a seven percent increase in real average spend, which offset a three percent decline in footfall. Total revenue for the first nine months rose six percent, supported equally by gains in customer numbers and spending.

In Zimbabwe, revenue grew by one percent in the third quarter, driven by a similar increase in average customer spend, while footfall remained flat at 11.2 million. The company expanded its network by eight outlets year-to-date, with two new openings and eight closures of underperforming stores, bringing its Zimbabwean footprint to 333 trading counters.

Meanwhile, Kenya delivered a standout performance, posting a 13 percent increase in third-quarter revenue. This was powered by a 25 percent rise in average spend despite a 10 percent dip in visits. Year-to-date, revenue climbed 15 percent, even as high inflation and employment concerns continued to suppress foot traffic. To counter this, Simbisa introduced more affordable value-meal options. The Kenyan network now stands at 251 outlets, following the addition of two counters and the refurbishment of five others.

In Eswatini, the group faced headwinds, with US-dollar turnover remaining flat in the third quarter and dipping two percent year-to-date. An eight percent decline in customer counts over nine months and a three percent fall during the quarter were partially offset by a three percent increase in real spend and improved productivity, helping sustain operating profitability.

Mr Dionisio underscored the company's commitment to maintaining margins in a challenging environment. "Our focus on lean operations and enhanced staffing structures has helped protect profitability," he said.

Looking forward, Simbisa aims to continue improving service delivery and customer experience through menu innovation, enhanced delivery channels, and value-driven campaigns to attract more customers. The group is also embracing sustainability initiatives, including piloting hybrid solar-electric systems at selected Zimbabwean outlets and transitioning to 100 percent paper-based packaging by February 2025.

"Sustainability remains at the heart of our strategy as we seek to deliver long-term value for shareholders and communities alike," Mr Dionisio said.

With its blend of expansion, innovation, and efficiency, Simbisa Brands is positioning itself to solidify its leadership across regional markets while continuing to deliver value amid evolving economic dynamics.
- zimpapers

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