KFC may be one of SA’s biggest fast-food brands, but it is not immune to the growing pressure reshaping the country’s quick service restaurant (QSR) sector.
In a market once dominated by global giants and trusted legacy names, the rules are changing fast, driven by inflation, new consumer demands, and a new wave of rivals disrupting everything from price to convenience, forcing even the biggest players such as KFC to rethink their strategies.
“We are the dominant player, but that comes with challenges,” said KFC Africa GM Akhona Qengqe in an interview with Business Day.
“The bigger you are, the harder it is to keep up the pace, especially when competition is accelerating and consumers expect more for less.”
While KFC remains the dominant QSR player with a network of more than 1,200 restaurants, the market is becoming increasingly crowded with rivals from aggressive international entrants and emerging fast-casual players to informal traders and grocery chains all vying for a larger share of the food-on-the-go market, a segment long considered the territory of fast food.
The country’s QSR market was valued at R354.3bn in 2023, accounting for more than 60% of the country’s total food service profit sector, according to GlobalData’s latest SA food service market trends report. Yet even with this scale, the environment is shifting fast.
“We are seeing channel blurring between QSR and fast casuals as they compete for ‘share of stomach’,” Trade Intelligence previously reported, saying that fast food prices had reached a tipping point and eating habits had changed.
The shift has not gone unnoticed. Nearly all of SA’s top 10 QSR and fast-casual brands have seen declines in footfall, according to the market researcher. Famous Brands, the group behind Steers, Wimpy and Debonairs Pizza, closed 41 restaurants in six months last year due to changing demographics and consumption patterns.
Despite these pressures, the QSR sector remains resilient. According to GlobalData, QSRs accounted for more than 60% of total food service profit sector revenue in 2024, contributing R601.2bn.
The channel has outperformed pubs, sit-down restaurants and coffee shops in terms of value growth, driven in part by affordability and a still-strong appetite for chicken and pizza.
But that growth masks an industry in flux. Input cost volatility, load-shedding and tight labour markets have put margins under strain. QSR brands are now being forced to innovate at pace — digitally, operationally and on the menu.
KFC said it had responded with a multipronged strategy to defend its turf and grow in new areas.
The brand is pushing ahead with footprint expansion, inviting South Africans to submit land for consideration in an effort to identify untapped trade zones.
It is also experimenting with alternative store formats including a student-focused concept store in Braamfontein and short-term pop-ups under the “Kentucky Town” banner to reach younger, more mobile consumers. According to Qengqe, there are many opportunities for growth in the domestic market.
Other brands are adapting in similar ways. Col’Cacchio, traditionally known for its full-service pizza restaurants, recently launched Col’Cacchio GO — a quick-service format built for dense residential areas.
With lower start-up costs, a simplified menu and faster service, the model is designed to meet changing consumer expectations while helping franchisees achieve break-even within months. The group sees continued growth in pizza and health-forward options, especially among urban youth seeking value without compromising on quality.
“While our traditional full-service restaurants remain a core part of our growth strategy, the SA QSR sector presents compelling expansion opportunities, particularly in high-density residential nodes,” Col’Cacchio CEO Etienne Pieterse said.
“As consumer demand broadens to include greater convenience, speed and value, we’re seeing increased traction for smaller, scalable formats that offer faster returns on investment.”
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