South African fast food market’s taste for technology driving growth

Insight Survey’s latest SA fast food/QSR Industry Landscape Report 2024 carefully unfolds the global and local fast food/QSR markets, based on the most credible intelligence and research. It examines the latest market trends, innovation and technology, drivers, and challenges, to present an objective insight into the South African fast food industry environment and its future.

Globally, the fast food market is estimated to be valued at approximately $901.8bn in 2024 and is forecast to grow at a high compound annual growth rate (CAGR) of 4.5%, to reach approximately $1.2tn by 2032. As illustrated in the graph below, McDonald’s remains the most valuable fast food brand in 2024, by a large margin, achieving a brand value of $221.9bn, increasing its brand value significantly from 2023.

Source: Kantar Graphics by Insight Survey

In 2023, the South African fast food industry continued to show substantial growth, demonstrated by a strong increase of 8.7% between 2022 and 2023. This strong growth is expected to continue, with an expected CAGR of 8.0%, between 2024 and 2028, driven by influencer marketing efforts, loyalty programmes and initiatives, and the presence of a now diminished, although ever-present threat, of ongoing loadshedding in the country.

Globally, the implementation of novel technologies has become essential in helping to drive the fast food market, and for players to become more competitive. For example, Manna Drone Delivery, Europe's largest and most advanced drone delivery operator, announced a new partnership with Boojum, Ireland's most loved Mexican-inspired burrito chain, to offer drone delivery for the fast food brand in Blanchardstown. This service will allow approximately 100,000 consumers to have Boojum’s burritos delivered fresh to their doorstep in just a handful of minutes.

In terms of automation, Miso Robotics, PopID, and Cali Group, recently partnered to launch CaliExpress, the world’s first fast food restaurant where artificial intelligence (AI)-powered robots autonomously cook burgers and fries. Additionally, the Chipotle founder, Steve Ells, launched Kernel, a plant-based, robot-powered fast food startup, staffed by as few as three workers and boasting an array of technology to prepare food and provide contactless service to customers.

The implementation of a vast array of fast food technologies has also become prominent locally, with one of the big innovators being KFC, which announced the launch of its new KFC Play innovation hub, featuring 100% cashless digital graphics and display kiosks. The store also features South Africa’s first crowdsourced playlist on Spotify, allows customers to digitally try on exclusive merchandise from a collab range with award-winning local designer, Mzukisi Mbane, and compete in virtual reality gaming experiences for KFC vouchers.

The company also successfully executed the first-ever drone delivery in the country, during the KFC T20 International Series against Australia. This included the on-field delivery of a 21-piece KFC bucket to Proteas player, David Miller, which was the first of its kind in South Africa.

Technology is also being used to drive consumer interest and engagement, with Nando’s recently adding the new ‘South Ah Sosatie Catch’ game to its website and app, to increase awareness, and orders of, its new Cabo Sosatie menu item. The aim of this game is for consumers to catch as many sosatie ingredients as possible, with more orders and plays resulting in more discounts on subsequent orders from Nando’s.

Finally, in terms of the optimisation of operations, Hungry Lion partnered with Altron to implement and integrate UKG Dimensions, a workforce management solution, and Servios Cashier Scorecard, to assist in preventing inefficient rework, and optimising scheduling, amongst a variety of other benefits designed to streamline operations, cut costs, and boost bottom lines.

The South African fast food/QSR Industry Landscape Report 2024 (184 pages) provides a dynamic synthesis of industry research, examining the local and global fast food industry from a uniquely holistic perspective, with detailed insights into the entire value chain – market size and forecasts, latest industry trends and innovation, industry drivers and challenges, fast food/QSR competitor analysis, latest marketing and advertising news, pricing and promotion analysis.

Some key questions the report will help you to answer:

• What are the current market dynamics of the global and South African fast food industry?
  
• What are the latest global and South African fast food industry trends, innovation and technology, drivers, and challenges?
  
• What are the market, food-type and offline/online retail value trends in the South African fast food market (2018-2023) and forecasts (2024-2028)?
  
• Which are the key South African fast food market players and what is the latest marketing and advertising news for each of the competitors?
  
• What is the latest company news for key South African fast food players in terms of products, new launches, and marketing initiatives?
  
• What is the pricing and recent promotions of key fast food competitors by category: Burgers, Chicken, Pizza, Pies, and Others?

Please note that the 184-page report is available for purchase for R50,000 (excluding VAT). Alternatively, individual sections can be purchased from R20,000 (excluding VAT).

For more information, please email az.oc.yevrusthgisni@ofni, call our Cape Town office on (021) 045-0202, or Johannesburg office on (010) 140- 5756.

To view a full brochure: South African fast food/QSR Industry Report 2024.

About Insight Survey

Insight Survey is a South African B2B market research company with more than 15 years of heritage, focusing on business-to-business (B2B) and industry research to ensure smarter, more-profitable business decisions are made with reduced investment risk.

We offer B2B and industry research solutions to help you to successfully improve or expand your business, enter new markets, launch new products or better understand your internal or external environment.

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For more information, go to www.insightsurvey.co.za.