FOODBIZ AFRICA 2009

The food service industry in South Africa is well developed and is the fastest-growing sector of the food market, fuelled by increased household incomes, a growing middle class and tourism, which is expected to be boosted considerably by the 2010 Fifa Soccer World Cup. The industry is fragmented and there are around 25,000 outlets consisting of hotels, restaurants, fast-food franchises and contract catering companies. According to EuroMonitor, the South African consumer foodservice industry experienced positive growth over the 2003/2004 period with the number of foodservice units increasing by 8%, while the number of transactions growing by 9%. Value sales rose by 17% in current value terms, to reach R23.3 billion in 2004. According to EuroMonitor, sales in this sector should reach R51 billion by 2009. The latest StatsSA statistics reflect that the total income generated by the food service industry in 2007 was R28.3 billion. Restaurants and coffee shops accounted for 49% of total income, followed by take away/fast food outlets at 27%, caterers at 17% and other catering services at 7%. Generally the restaurant chains, caterers and hotel groups will not import directly but will rather utilise the services of specialist direct importers and wholesalers. In most cases procurement for all restaurants within a group is done on a centralised basis and then the supplier is required to deliver product either to a central regional point or to individual restaurants within the chain.