Famous Brands, the parent company behind household names like Steers, Debonairs Pizza, and Fishaways, is closing some outlets as it doubles down on value-driven offerings amid South Africa’s economic challenges, Cape {town} Etc reports.
In its latest trading update, the group reported a 10% revenue growth for the six months ending August 2024 but acknowledged shifting consumer spending habits. While affordability remains a priority for many South Africans, Famous Brands has streamlined operations, including shutting down underperforming stores across its portfolio.
The company closed 47 outlets during the 2023/24 financial year. This included 14 Steers, 11 Fishaways, and 5 Debonairs Pizza locations, alongside 7 Mugg & Bean, 6 Wimpy and 4 Milky Lane branches.
The closures reflect broader economic pressures, with rising interest rates and persistent inflation squeezing household budgets. Still, Famous Brands is leaning into the fast-food market’s resilience. New initiatives, like affordable meal combos and convenient digital ordering options, aim to cater to price-conscious customers without sacrificing quality.
While flagship brands like Steers and Debonairs maintain strong brand equity, the closures highlight the tough decisions businesses face to remain competitive. According to Daily Investor, the company’s move comes as consumers gravitate towards value-driven deals amid economic uncertainty.
For Cape Town’s millennials – a key demographic balancing affordability and convenience – the group’s evolving strategy signals an effort to adapt while maintaining its presence in the fast-food landscape.
The company has also highlighted a push for innovation, with expanding delivery services and promotions that make fast food more accessible than ever. As the fast-food giant navigates these challenges, its ability to meet South Africans’ evolving tastes could determine its long-term success.
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Feature Image: Lubabalo Lesolle / Gallo Images (Image is for illustration only.)
Article originally written and published by Aiden Daries for Cape Etc
