Say goodbye to fast-food restaurants as you know them in South Africa

As convenience is becoming an increasingly demanded aspect of fast-food and quick-service restaurants (QSR) in South Africa, operators are investing more heavily in takeout, delivery, and drive-through channels.

This has led to new store formats emerging and growing across the country, with drive-thru capability now top of mind when new locations are rolled out.

Industry leaders like Famous Brands, which has well-known names such as Steers, Debonairs, Fishaways, and Wimpy in its stable, are positioning themselves for this shift towards convenience.

Nedbank national franchise manager Amith Singh explained that the restaurant and QSR industry has always operated with tight margins, shifting consumer tastes, and intense competition.

More recently, the trend of convenience, characterised by the rise of take-out, drive-thru, and delivery channels, has become more pronounced.

According to Singh, leading QSR operators report that around 35% to 40% of turnover now comes from off-premise consumption, including drive-thru and delivery. 

“That shift is influencing decisions around store design, site selection, and capital allocation,” he explained.

QSR operators are responding to the shift in demand by designing their new store formats with fulfilment efficiency in mind. 

Singh used the example of drive-thru capability being added to many new stores, with this capacity no longer seen as a differentiator but a standard requirement. 

To illustrate this shift, Singh used the example of Chicken Licken’s expansion strategy, with the company’s outlets outside of shopping malls now considered unviable without a ‘fly-thru’ model.

A similar shift is being seen with third-party delivery platforms such as Uber Eats and Mr D, which have become essential distribution channels.

However, Singh said these channels come at a cost, as these platforms’ commission structures can reduce margins by up to 10%.

This, he explained, could create a trade-off between reach and visibility on the one hand and profitability on the other.

Big names following the trend

In its results for the 2026 financial year, released on 18 May, Famous Brands also noted this shift towards convenience.

The company, whose Leading Brands portfolio includes well-known QSR names such as Steers, Debonairs Pizza, Fishaways, Wimpy, Milky Lane, and Mugg & Bean, said its strategy is deliberately flexible to create greater value for customers.

In line with this flexibility, Famous Brands said its investment over the coming years will be directed towards delivery channels, smaller-format restaurants, and drive-thrus to meet sustained demand for convenience.

This echoes comments made in the company’s Integrated Annual Report for the 2025 financial year, wherein it said that consumers increasingly seek convenience.

“This includes delivery (own and third-party aggregators), collect ordering, and drive-thru orders,” Famous Brands said.

The company explained that this increasing demand for convenience has implications for value creation, as brands that offer greater convenience will retain and win market share.

In response, the company has developed delivery services, both its own delivery and through third-party food aggregators, to extend its footprint. 

“We continue to roll out smaller formats at convenient locations and expand our drive-thru restaurant footprint,” it said. 

Even granular considerations have been made for this demand shift, including catering the brands’ menus and packaging to the needs of at-home dining experiences.

Famous Brands’ strategy is in line with one of the two ways in which Singh said companies are responding to the increasing demand for convenience and delivery in particular.

“Some fully integrate with platforms to maximise exposure and volume. Others are moving towards hybrid models that balance platform participation with direct ordering and in-house delivery,” Singh explained. 

“A growing number are also investing in their own digital platforms, loyalty ecosystems, and delivery capabilities to reduce longer-term dependency.”

According to Singh, the success of QSR brands will increasingly depend on having partners who understand these dynamics across the full value chain and can help enable the required changes.