FAST food firm, Simbisa Brands Limited, is set to expand its store network in Zimbabwe, lining up 31 new stores in its financial year ending June 30 2025.
In September, Simbisa announced that it would expand its footprint by opening 25 new counters in Zimbabwe in the current financia year. This would also be supported by an upgrade of 27 of its existing counters.
As of June, there were 332 counters trading in Zimbabwe.
In its trading update for its first quarter ended September 30, 2024, Simbisa said its revenue rose 4% compared to the 2023 comparative based on its expansion drive.
“A net of 5 new company-operated counters were opened during the quarter, with 31 additional store openings planned for the remainder of the financial year, primarily in Zimbabwe,” Simbisa said.
“The group also plans to refurbish and refresh 44 counters throughout the year to further enhance the customer experience.”
Apart from Zimbabwe, Simbisa has outlets in Kenya, Eswatini, Zambia, Ghana and Mauritius.
Simbisa said local operations were impacted by currency devaluation and power outages.
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“Revenue grew by 4% in Q1 FY 2024 versus prior year, driven by a 12% year-on-year increase in customer counts, with 12.1 million customers served in Q1 FY 2025,” Simbisa said.
“Simbisa Zimbabwe expanded its market share through new store openings, adding a net total of 47 new counters between September 30 2023 and September 30 2024, bringing the total to 330 counters trading at the end of the quarter.”
The quick service restaurant added, however, that Simbisa Zimbabwe’s energy costs more than doubled year-on-year in period under review, driven by a 54% increase in electricity tariffs and worsening power outages.
“The company is intensifying cost-containment measures to protect margins and improve profitability,” Simbisa said.
In the outlook, Simbisa has planned its growth on four main pillars — enhancing customer experience, strengthening brand presence, expanding its reach, and driving organic growth.
The group’s overall revenue grew by 6% year-on-year, with customer counts rising 7% versus prior year while real average spend fell 1%.
“Regional operations saw a 12% year-on-year revenue increase. Between September 30 2023 and September 30 2024, the group opened a net total of 57 new company-operated counters, including 5 in the quarter under review,” Simbisa said.
“Additionally, one new counter was added in franchised markets over the same period. As of September 30 2024, the group’s total store count stands at 720, comprising 606 company-operated counters and 114 franchised outlets.”
