The slow economic growth over the last couple of years coupled with Covid-19 at the beginning of 2020 and the recent unrests in some parts of Gauteng and KwaZulu-Natal has brought challenges for the franchising sector.
However, data shows that the sector is showing signs of recovery ahead of the festive season, especially in quick service restaurants, said Henk Botha, industry specialist: restaurants at FNB Franchising.
Restaurants, coffee shops and takeaways reflected an improvement of over 200% between March and May 2021. While this is somewhat expected as hard lockdown impacted trading by 50% of the trading period in 2020, the recovery rate of the restaurants and coffee shops over the period still shows a recovery rate of 88%, he said.
“Moreover, notwithstanding the strong recovery, the industry still faces some challenges due to infection rates driving Covid-19 restrictions, consumer apprehension regarding eating out and poor economic conditions.” He said the quick service restaurants concept has shown to have recovered well with Free Stand Drive Thru’s having recovered fully and exceeding pre-covid levels in some areas.
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