Summary

The South African food service market is a dynamic and diverse landscape that reflects the rich tapestry of this culturally vibrant nation. From bustling urban centres like Johannesburg, Cape Town, and Durban to the serene landscapes of the Cape Winelands and the lush coastlines of KwaZulu-Natal, this country's food service market offers a captivating journey through flavours, cultures, and histories. With a population that is as diverse as its landscapes, South Africa's food service industry caters to a multitude of tastes, preferences, and dietary requirements. Whether savouring traditional dishes like bobotie and boerewors, indulging in international cuisines, exploring street food markets, or enjoying farm-to-table experiences, South Africa's food service market is a reflection of its ever-evolving culinary dynamism and the spirit of unity that defines this rainbow nation. South Africa is known for its love of outdoor grilling, called "braai." It's a significant cultural tradition where families and friends gather to barbecue various meats and enjoy social gatherings around an open flame. South Africa's food service industry is a reflection of its multicultural society. It offers a wide variety of cuisines, including indigenous African, Indian, Malay, and European influences, resulting in a fusion of flavors. South Africa has its share of iconic dishes like bobotie (a spiced, baked mince dish), bunny chow (hollowed-out bread filled with curry), and boerewors (spiced sausage). These dishes showcase the country's rich culinary heritage. South Africa has a vibrant food market culture, with popular markets like Neighbourgoods Market in Cape Town and Maboneng Precinct Market in Johannesburg. These markets offer a wide array of street food, artisanal products, and a lively atmosphere. South Africa has several renowned culinary schools and institutions, producing skilled chefs and culinary entrepreneurs who contribute to the industry's growth and innovation. Yum! Brand Inc., since entering the market in 1971, has built a network of about 1,000 restaurants for its major brands in South Africa and has continued to expand over the years.

According to the research report "South Africa Food Service Market Overview, 2028," published by Bonafide Research, the South African food service market is expected to add more than USD 14 Billion from 2023 to 2028. South Africa's growing middle-class population has led to increased disposable income, allowing more people to dine out and explore a variety of food options. Urbanisation is on the rise in South Africa, with more people living in cities and urban centers. Urban dwellers have greater access to food service establishments, contributing to higher demand. The fast-food segment of the market is expanding rapidly, catering to the on-the-go lifestyle of many South Africans. International fast-food chains, as well as local brands, are popular choices. Casual dining restaurants, offering a balance between affordability and quality, have gained popularity. These establishments often serve a mix of local and international dishes. Dining out is a social and cultural activity in South Africa. It's common for families and friends to gather at restaurants for special occasions, celebrations, and socializing. The South African government has implemented various initiatives to support small businesses and entrepreneurship, which has had a positive impact on the food service industry. In an effort to combat the rising rates of non-communicable diseases, South Africa implemented a Health Promotion Levy, often referred to as the "sugar tax." This tax is applied to sugary beverages and encourages healthier dietary choices, impacting the offerings of many food service establishments. The government actively supports the tourism industry, which has a direct impact on the food service market. Initiatives include marketing campaigns to attract international tourists and investments in infrastructure development around tourism hubs.

According to the report, the sectors are segmented into commercial and non-commercial; among them, commercial is the leading market. South Africa is urbanising rapidly, with more people living in cities and urban areas. Urban dwellers often have busier lifestyles and a higher propensity to dine out or order food, leading to increased demand for commercial food service establishments. South Africans are adopting more westernised lifestyles, which include dining out or ordering takeout or delivery. This shift in lifestyle choices has boosted the commercial food service sector. Despite economic challenges, South Africa's economy has seen growth in various sectors. This has led to increased disposable income, allowing more people to afford dining at commercial food service establishments. South Africa is a popular tourist destination, attracting both domestic and international tourists. Tourists often prefer the convenience and variety offered by commercial food service establishments, leading to higher demand. South Africa's food service industry offers a wide variety of cuisines, catering to different tastes and preferences. The commercial sector is at the forefront of providing diverse dining options, attracting a broad customer base.

Based on the system, it is segmented into the conventional foodservice system, the centralised foodservice system, the ready-prepared foodservice system, and the assembly-serve foodservice system. Among them, the centralised foodservice system has the second highest market share. The culture of the centralised foodservice system in South Africa is characterised by efficiency, cost-effectiveness, and the ability to cater to a wide range of institutions and establishments. In this system, food production and distribution are streamlined, allowing for consistent quality and standardised menus. One of the key cultural aspects is the emphasis on ensuring that institutions, such as schools, hospitals, and government facilities, have access to nutritious and affordable meals. This aligns with the government's objectives to promote food security, nutrition, and health. The culture also emphasises the importance of adherence to strict hygiene and safety standards, as centralised kitchens often serve large numbers of people. This commitment to safety and quality reflects South Africa's dedication to the well-being of its citizens. In the centralised foodservice system, there is a strong sense of accountability, as the system is responsible for providing meals to vulnerable populations, including schoolchildren and patients in healthcare facilities. This culture of responsibility extends to food procurement, storage, preparation, and distribution, ensuring that meals reach those in need efficiently.

In terms of service, they are segmented into full-service restaurants, quick-service restaurants, institutes, and others. In the country where quick-service restaurants are a growing market, South Africans are adopting busier and more urbanised lifestyles, leading to an increased demand for quick, convenient, and on-the-go dining options. Quick-service restaurants cater to this need by offering speedy service and takeout options. In a country where cost-consciousness is important for many consumers, QSRs are often perceived as more affordable alternatives to full-service restaurants. This affordability makes QSRs accessible to a broader range of customers. Quick-service restaurants in South Africa typically offer diverse menus that encompass local flavours, international cuisines, and fusion dishes. This variety appeals to a wide customer base with different tastes and preferences. As urbanisation continues to grow in South Africa, more people are living in cities and metropolitan areas. Quick-service restaurants often have a strong presence in these urban centres, attracting a sizable customer base.

South Africa Foodservice Market News
• Spur Corporation planned to open 32 new restaurants in South Africa and nine stores internationally by June 30, 2023.
• KFC opened a new outlet in Pinelands, Western Cape, which is ultra-modern and features some of the latest restaurant technology. The store features digital menu boards in each of the dual-lane drive-thru. It also boasts dedicated self-service kiosks for walk-in customers, a dedicated window for delivery drivers and digital menu boards in July 2022.

Considered in this report:
• Geography: South Africa
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• South Africa Food Service market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Sector
• Commercial
• Non- Commercial

By System
• Conventional Foodservice System
• Centralized Foodservice System
• Ready Prepared Foodservice System
• Assembly-Serve Foodservice System
By Type of Restaurant
• Full service restaurants
• Quick service restaurants
• Institutes
• Other

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Food Service industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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