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Food industry shows growth in SA

South Africans are spending more money on fast-food and coffee this year than they were in 2017, according to a survey carried out by Stats SA. There has been a notable 7.1% increase in sales in fast-food outlets in the country and a 7% increase of revenue at coffee shops and restaurants.

These are positive figures for 2018, considering the rise in costs since VAT was increased by one percentage point. The only decline was a 2.8% drop in catering services, probably because companies are clamping down on unnecessary costs related to their businesses.

This is good news for franchise and small business owners who have been feeling the pinch since the rising fuel and VAT costs. An increase in fast-foods could very well relate to overworked consumers who don’t have time to get home in time to cook a healthy meal.

The Stats SA reports findings:

Year-on-year percentage change in food and beverages income at constant 2015 prices by type of income

Measured in real terms (constant 2015 prices), total income generated by the food and beverages industry increased by 5,6% in March 2018 compared with March 2017. Positive annual growth rates were recorded for food sales (6,3%) and bar sales (3,0%).

Year-on-year percentage change in food and beverages income at constant 2015 prices by type of enterprise

In March 2018, positive contributors to the annual growth rate were restaurants and coffee shops (7,0% and contributing 3,6 percentage points) and takeaway and fast-food outlets (7,1% and contributing 2,4 percentage points).

Food and beverages income at constant 2015 prices for the latest three months by type of enterprise

Total income increased by 1,5% in the first quarter of 2018 compared with the first quarter of 2017. The main contributor to this increase was takeaway and fast food-outlets (4,6% and contributing 1,5 percentage points).

Seasonally adjusted food and beverages income increased by 0,2% month-on-month in March 2018. Positive month-on-month growth rates were recorded for:

  • restaurants and coffee shops (1,0%); and
  • catering services (0,4%).






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