Owner of Steers, Wimpy, and Mugg & Bean rolling out drive-thrus across South Africa

Famous Brands continued to expand its drive-thru footprint in the first half of the 2027 financial year, with its network now standing at 81 drive-thrus.

These drive-thru locations, along with new delivery hubs, form part of an aggressive expansion by Famous Brands and its franchisees to expand its footprint. 

In doing so, the company hopes to ward off heightened competition from online grocery platforms, which are growing rapidly.

This was revealed in Famous Brands’ results for the six months through August 2026, released on Wednesday, 21 October.

These results showed a 2.3% increase in revenue to R4.34 billion, which the company described as a “resilient performance in a constrained trading environment”.

Despite this topline growth, Famous Brands’ bottom line came under pressure, with operating profit down 4.7% to R375 million and headline earnings per share down 3.2% to 228 cents.

Famous Brands said it maintained a disciplined focus on costs, with expenses growth contained below inflation.

The company said the trading environment over this six-month period was characterised by worsening economic conditions, heightened by the US-Iran conflict and escalating fuel costs. 

These factors constrained consumer spending, putting pressure on Famous Brands’ margins.

“Famous Brands is addressing areas of underperformance,” the group said. 

“Corrective measures implemented in the second half of the 2026 financial year and sustained through the period under review have supported progress in Signature Brands, AME and Retail.”

Famous Brands’ two brand segments are: Leading brands, which include Steers, Debonairs, Mugg & Bean, and Wimpy; and Signature brands, which include Salsa, Mythos, Lupa and Turn ‘n Tender.

Despite the challenging backdrop, Famous Brands’ franchise partners opened 48 new restaurants and revamped 67 more.

This brought its restaurant network to 3,070 restaurants across 21 countries, with 2,723 in South Africa alone.

The group explained that its franchisees also invested in expanding their drive-thru network over the period.

Four new drive-thrus were opened, bringing this footprint to 81 drive-thrus.

Delivery hubs also continued to gain traction, with 14 new hubs opened. This brought the total to 87 across South Africa and Botswana, enhancing the delivery experience.

Convenience expansions such as drive-thrus and delivery hubs are becoming increasingly important for Famous Brands’ future growth.

The company’s interim results explained that convenience is increasingly shaping consumer behaviour, driving demand for delivery, order for collection and drive-thru options.

“At the same time, the rapid growth of online grocery platforms is providing consumers with another convenient alternative to restaurant delivery,” it said. 

The group said that in South Africa in particular, the rapid growth in online delivery is also changing shopping behaviour.

One change is that the adoption of services like online grocery delivery has reduced foot traffic at malls as consumers increasingly opt for home delivery.

“Despite constrained disposable incomes, consumers continue to prioritise occasions to treat themselves and spend time with friends and family,” Famous Brands said.

This continued demand, Famous Brands said, positions restaurants, particularly casual dining formats, as an “affordable indulgence”.