Africa-Press – Zimbabwe. FAST-FOOD giant, Simbisa Brands Limited, opened three new counters in Zimbabwe during its first quarter ended September 30, 2025, as it expands its footprint despite the impact of the fast-food tax.
In its annual report for the period ended June 30, 2025, Simbisa said the Zimbabwe footprint expanded by 21 new outlets, while 18 outlets were closed, resulting in a net of three new store openings to 335 active stores.
In its first quarter trading update for the period ended September 30, 2025, Simbisa reported having 338 counters in Zimbabwe.
“The store network expanded by a net total of 8 new counters between 30 September 2024 and 30 September 2025, including 22 store openings and 14 store closures, to close with 338 counters trading at the close of Q1 FY2026,” Simbisa said.
“During the same period, 6 counters were refurbished as part of the infrastructure upgrade programme.”
The group plans to expand its footprint, with a net of 66 new stores in the pipeline through to the end of its current financial year.
This includes the launch of a pasta brand, Pastino, with two outlets scheduled to open in Harare during Simbisa’s second half-year period.
Simbisa set aside US$18,58 million in capital expenditure commitments for the current year ending June 30, 2026, up from US$11,8 million in the previous year.
“The group remains focused on accelerating its customer-centric growth strategy through continued investment in digital transformation and service excellence,” Simbisa said.
“Enhanced digitisation efforts will improve operational efficiency and customer convenience, while also supporting cost-saving initiatives.”
Zimbabwe accounted for nearly 71% of Simbisa’s operations during the financial year ended June 30, 2025, generating revenue of US$216,09 million.
Meanwhile, its regional business contributed US$90,35 million in revenue from markets such as Kenya and Eswatini.
During the first quarter, Kenya’s customer volumes grew by 9% year-on-year to 3,3 million, offsetting a 3% decline in average spend to US$6,43 and resulting in a 6% increase in revenue to US$21 million.
For Eswatini, the same period saw revenue grow by 10% year-on-year to US$1,5 million, driven by a 9% increase in customer volumes to 293 000 and a modest 1% uplift in average spend to US$5,05.
“Simbisa Zimbabwe continued to face margin pressures, emanating from inflationary cost increases while also absorbing the impact of the fast-food tax,” Simbisa said of its first quarter performance.
“Strict cost management measures are being implemented, with a focus on energy efficiency, maintenance control and optimising staffing structures to preserve profitability.”
Despite this, revenue grew by 16% year-on-year during the first quarter to US$61,1 million, supported by a 9% increase in customer volumes to 13,2 million and a 6% rise in average spend.
“Significant improvements in customer service have strengthened brand loyalty and encouraged repeat visits,” Simbisa said.
“The uplift in average spend was primarily driven by increased delivery orders, which grew 74% year-on-year in Q1 FY2026.”
The group is actively driving efficiencies through its digitisation journey, solarisation pilots and optimising staffing structures under the new decentralised, brand-led operating model.
These efforts are expected to support sustainable margin improvement and long-term profitability across the markets it operates in.
“The decentralised, brand-focused model introduced in Zimbabwe and Kenya is already delivering positive results. Renewed focus and energy from local management teams have led to marked improvements in both customer service and financial performance,” Simbisa said.
“Our revised pricing strategy, featuring substantial reductions on several key menu items, has successfully stimulated growth in customer volumes, more than compensating for the softer gross profit margins.”
For More News And Analysis About Zimbabwe Follow Africa-Press
