HARARE — Simbisa Brands Limited increased first-quarter revenue by 24% to US$104.4 million in the three months to September 30, 2026, as stronger customer traffic, higher average spending and rapid growth in digital delivery supported performance across its main markets.
The fast-food operator, whose portfolio includes Chicken Inn, Pizza Inn and other restaurant brands, said customer volumes rose 10% year on year to 18.5 million, while average spend increased 12%. The performance reflected its volume-led growth strategy, supported by improved food quality, service standards, competitive pricing and targeted promotions.
Zimbabwe remained the group’s largest market, generating revenue of US$77.6 million, up 27% from the comparable quarter. Customer volumes increased 11% to 14.6 million, while average spend rose 15%.
Delivery operations were a particularly strong contributor in Zimbabwe, with volumes increasing 57% year on year. Simbisa attributed the growth to investment in its delivery fleet, wider customer reach and improved operational zoning, which strengthened convenience and access to its restaurant brands.
The Zimbabwe business added a net 21 counters over the 12 months to September, taking its network to 359 outlets. This comprised 29 openings and eight closures, while 15 existing outlets were refurbished during the period. The company opened 13 new stores during the first quarter across the group.
Kenya also recorded growth, with revenue rising 15% to US$24.1 million. Customer volumes increased 9% to 3.6 million, while average spend grew 5%. Delivery volumes rose 33%, supported by the expansion of its in-house Kutuma Kenya service and third-party delivery partnerships.
Digital ordering accounted for an increasingly important share of Kenyan sales. Delivery net merchandise value represented 32% of total market turnover, exceeding the group’s 30% target. The Kenyan network stood at 261 counters after nine net additions over the preceding 12 months, with 19 outlets refurbished.
In Eswatini, revenue increased 17% to US$1.8 million. Customer volumes grew 6% to 310,000, while average spend rose 11%. The business added five net stores over the year.
Expansion strategy meets margin pressures
Despite the stronger sales performance, Simbisa warned that higher input prices, employee expenses and energy costs continued to put pressure on operating margins.
The company is responding through procurement improvements, supply-chain optimisation, solar installations, digitisation and labour-productivity initiatives. These measures are intended to contain operating costs while supporting the expansion of its restaurant network.
Simbisa plans to open a further 74 stores during the remaining nine months of its 2027 financial year, taking targeted new openings to 87 for the year ending June 30, 2027. Its total network stood at 773 counters at the end of September, comprising 642 company-owned and 131 franchised outlets. A further 34 outlets were refurbished during the quarter.
The Zimbabwe Mail business desk notes that Simbisa’s results provide an important indication of consumer activity in Zimbabwe’s formal retail and food-service sector. The 27% revenue increase in the domestic market, alongside higher customer traffic and average spending, suggests that established brands with competitive pricing and accessible products continue to attract demand.
However, the distinction between revenue growth and profitability remains important. Higher sales do not automatically translate into stronger margins when food inputs, wages, electricity and distribution costs are rising. Simbisa’s ability to convert increased customer traffic into sustainable earnings will depend on cost discipline, procurement efficiency and the productivity of its expanding store network.
The growing contribution of delivery operations is also strategically significant. Digital ordering can widen market reach and improve customer convenience, but its long-term financial value will depend on delivery economics, order volumes and the cost of maintaining the service infrastructure.
Simbisa said it would maintain its focus on customer engagement, product innovation, food quality, digital ordering, drive-through services and store refurbishment during the remainder of the financial year.
The group’s first-quarter performance points to continued demand for established quick-service restaurant brands, but the next test will be whether expansion and higher sales can deliver stronger operating returns in an environment of persistent cost pressures.
