Fast-foods chain, Simbisa Brands Limited is looking to improve and sustain its delivery service business in key regional markets including Zimbabwe and Kenya following a steady increase in demand during the pandemic.
The Group runs fast-food outlets such as Chicken inn, Fish inn, Pizza Inn and franchises like Nandos and Galito’s in several African countries including Zimbabwe, Kenya, Zambia, Mauritius, Ghana and Namibia and has a franchised business in DRC.
In its six months to December 31, 2020 trading update released this morning, the Group noted that the delivery services minimized the impact of the pandemic on revenue as customer habits changed due to restrictions on movement.
In Kenya for instance, the strategy to unbundle the delivery business-Kutuma Kenya Limited paid-off when the unit registered a 48 percent increase in revenue between First Quarter (1Q) and 2Q FY2021.
In Zimbabwe, the Dial-a-Delivery mobile application is steadily gaining traction.
“A key focus area remains on growing and improving the delivery business which is being realised through the continued development and refinement of the Dial-a-Delivery mobile application in order to enhance the user experience and with the target of growing application-related customers and orders,” said Basil Dionisio, Simbisa Brands Ltd, chief executive officer.
“The Group is working hard at recovering lost customer counts through promotions and affordable value options for customers where spending power is under pressure and to focus on driving growth in sales generated through delivery channels,” he said.
In Zimbabwe, the number of delivery zones has been increased in order to shorten delivery distances and to improve on delivery times and coverage.
Through its subsidiary Kutuma Kenya Limited, Simbisa Brands is developing a Customer Data Platform to collate, analyse and interpret the data and information available through the mobile application, to improve the delivery businesses’ performance and the customers’ experience
“The strategy to unbundle the delivery business with the view of growing delivery sales in the market and enhancing efficiencies has already started to pay-off with delivery sales in Kenya increasing 31% year on year, versus the legacy in-house delivery service. Growth in delivery revenue contribution to Simbisa Brands Kenya increased from an average of 14% in 1H FY2020 to 20% in 1H FY2021,” the Group said.
Despite the focus on delivery units, the Group has continued to increase its footprint in operational counters across all markets.
There was a net new store growth of 21 stores from the beginning of the financial year and an increase of 13 stores for the quarter.
“The Group celebrated its 500th store opening during the quarter. This historic milestone reinforces Simbisa’s continued commitment to grow its footprint. Simbisa closed the period with a store count of 509 stores,” said Simbisa.
The Group revenue for the six months increased by 101% to ZWL$ 8.003 billion (+44% in Zimbabwe and +500% in the Region) with growth in Zimbabwe mainly driven by a 56 percent increase in average spend.
In the Region, whilst revenue fell by 14 percent in USD terms, driven by a 19 percent decline in customer counts offset by a 6 percent increase in average spend, translation into Zimbabwean dollars reflects a 500 percent growth.
