Fast-food giant, Simbisa Brands Limited (Simbisa) expects to set up 17 new stores across the country by June next year as the company continues to exhibit confidence in the local market despite economic headwinds weakening consumer appetite, 263Chatb Business has learnt.
Simbisa, which operates Chicken Inn, Pizza Inn, Creamy Inn, Baker’s Inn, Fish Inn, Galito’s Africa, Nando’s, Steers and Vida E Caffe current has 221 counters in Zimbabwe.
In its latest financial statement, the company said it completed 14 stores during the just ended financial year.
“The Group continued to grow market share in Zimbabwe with the opening of 14 new counters between 30 June 2019 and 30 June 2020 to close the year with 221 counters. There are 17 new store openings in the pipeline for FY2021,” said the Group.
The Group has set aside around US$10 million on the anticipated projects.
However, due to the biting economic environment in the country, the company expects to restrict operational costs by negotiating fixed rentals and switch to a turnover-based model to alleviate margin pressure.
“Currency volatility remains the key risk to our business’ performance; management remains vigilant of the risks and has mitigated the inherent currency risk by maximizing localization of cost of sales and operating expenses and ensuring optimal pricing is achieved in local currency,” the Group said.
Despite plans to open more stores locally, Simbisa which is also present in Kenya, Namibia, Zambia, Mauritius and Ghana will also set its strategic focus on the digital drive with bias towards delivery over walk-in services for its customers in the wake of Covid-19.
“The Dial-a-Delivery mobile application has now been launched in four of our markets with extremely positive uptake and the balance of our 2 markets will be launched in Q1 FY2021,” it said.
The strategic focus will remain on growing the delivery channel and enhance of its service offering through technology development.