Simbisa Brands targets expansion with US$17.8M investment

ZIMBABWE – Simbisa Brands, a subsidiary of Innscor Africa Limited, is pressing ahead with its expansion strategy, with plans to open 31 additional stores before the close of the financial year. 

The company, which operates a diverse portfolio of 16 restaurant brands, has already launched five company-operated counters in the first quarter. Alongside these openings, the group intends to refurbish and refresh 36 counters across its markets, all at an estimated cost of US$17.8 million.

The group manages operations in Ghana, Kenya, Mauritius, Namibia, Zambia, and Zimbabwe while licensing its brands to franchisees in the Democratic Republic of Congo, Malawi, and Eswatini. 

In Zimbabwe, it holds the franchise rights to internationally recognized brands such as Nando’s, Grill Shack, and Steers.

Resilience in the face of economic headwinds

Despite facing economic hurdles in its primary market of Zimbabwe, Simbisa Brands recorded a 6% year-on-year revenue growth for the financial year ending September 2024. 

In Zimbabwe alone, revenue grew by 4%, driven by a 12% increase in customer count. The company attributes this growth to strategic store openings, which have bolstered customer engagement despite challenges such as currency volatility, drought-induced supply chain disruptions, and rising energy costs.

Electricity tariffs in Zimbabwe surged by 54% during the review period, leading to a doubling of energy expenses for the group. Additionally, raw materials such as potatoes and maize became more expensive due to drought conditions, further straining margins.

Expansion milestones

Between September 2023 and September 2024, Simbisa Brands added 57 new outlets in its directly managed markets and one in its franchised territories. 

This growth brought the total number of Simbisa-operated stores to 606, with an additional 114 franchised outlets, reaching a combined global store count of 720.

In Zimbabwe, the company opened 47 new stores in the same period, increasing its store presence in the country to 330. The company credits its store expansion strategy as a key factor driving a 7% year-on-year increase in customer numbers across its markets.