FAST-FOOD outlet, Simbisa Brands Limited (Simbisa) is working to minimise the cost impact of the newly-introduced fast-food tax that went into effect at the start of the year.
In the 2025 National Budget released last November, Treasury introduced a slew of new taxes, including a fast foods tax of 0,5% of the sale value of the food sold at fast-food restaurants and outlets.
The new tax is set to affect Simbisa, the country’s largest fast-food company with 339 stores across Zimbabwe as of last year.
In a statement attached to its half year financial results ended December 31, 2024, Simbisa chief executive officer Basil Dioniso said local operations achieved revenue growth of 4% to US$110,89 million during the period compared to the prior year.
He said this was driven by a 7% increase in customer counts, despite the average spend contracting by 3% year-on-year reflecting a decline in disposable income.
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“In the 2025 National Budget, Zimbabwe introduced a 1% tax on specific fast-food items, effective from January 1, 2025. The group is working on solutions to minimise the impact on menu prices whilst preserving margins,” Dioniso said.
“These include enhancing supply chain efficiencies and engaging suppliers on raw material prices.
“Despite economic headwinds, the group intends to expand its market share and reach in Zimbabwe through new store openings and increasing deliveries in the market.”
He said there were 10 new counters in the pipeline to June 2025, of which six were drive-throughs.
“As committed, 12 counters have been earmarked for refurbishment by the end of FY2025. The group believes there is opportunity to significantly grow its contribution from the delivery segment,” Dioniso added.
“Leveraging technology to optimise and expand delivery zones for maximum delivery efficiency, together with exclusive delivery deals and targeted marketing initiatives, Simbisa Zimbabwe plans to accelerate the growth in deliveries in the short to medium term, as customers increasingly seek the convenience of delivery services.”
For local operations, capex was US$8,05 million for the period under review from a 2023 comparative of US$15,68 million.
Dioniso said the group remained committed to continuously improving brand standards and customer service through refurbishing and refreshing the firm’s older store network.
He added that the group would also leverage customer feedback to optimise and develop products and services.
“We have identified and are currently vetting a potential 64 new sites to be opened over the next 18 months to June 2026, including 56 in Zimbabwe, six in Kenya and two in Eswatini,” Dioniso said.
“We will continue with our refurbishment program to modernise and upgrade our existing older-store network.
“We have added 60 outlets in our company-operated markets to the programme to June 30, 2026, with the majority of sites in Zimbabwe which has a more mature store network.”
The value of local assets rose to US$129,93 million during the period under review, from US$123,23 million as of June 30, 2024.
