Business

Fast-food chain started in 2018 taking on Nando’s and Steers in South Africa

Kirsten Minnaar • 3 September 2026

Between rising beef prices and tight household budgets, more South Africans are turning towards affordable chicken brands such as Pedros.

The brand has grown rapidly since its founding 8 years ago, and has 200 stores across South Africa and the rest of the continent, and is targeting 250 stores by 2027.

The business was founded by Moosa Bux, an entrepreneur with experience in retail, property, and fast food.

Bux holds a BCom in Economics from the University of Johannesburg and an MBA from the Gordon Institute of Business Science.

Before launching Pedros, Bux held directorships in Spar and flame-grilled chicken businesses.

During this time, he recognised a gap in the country’s fast-food market: Even though flame-grilled chicken is popular, it is unaffordable for many people.

So, Bux decided to offer flame-grilled peri-peri chicken at prices affordable to a broad customer base, and in 2018, he opened the first Pedros store inside a KwaZulu-Natal Spar.

The business was an instant hit, opening 125 stores in five years and reaching 173 the next year. It has since expanded beyond South Africa into markets including Botswana, Zambia, Kenya, and Eswatini.

Throughout its expansion, keeping prices low has remained a strategic priority. Pedros said its lower costs are partly supported by its in-house marketing, manufacturing and distribution operations.

Pedros also focuses on location, with the company saying that selecting the right properties and negotiating suitable deals are important to its franchise model.

“We employ a highly competitive pricing strategy, offering affordable options that cater to a broad customer base,” Pedros said. “Picking the right spot is critical to our success.”

The company has also built its identity around its South African roots, sourcing products from local partners and producers.

The brand’s marketing has targeted larger competitors, including Nando’s and KFC, through advertising that directly references their brands and pricing.

“Our aim is to disrupt the market with our unique flavour, excellent product, and unbeatable value for money and to be one of the leading flame-grilled chicken brands in the country,” said Pedros.

Bux won the Young Business Achiever Award in 2019, with organisers highlighting his focus on quality, customer experience, and value for money.

Rising prices drive consumers towards Pedros

Source: 2026 Fast Food & QSR Industry report

Since opening its first store in 2018, Pedros Chicken has more than doubled its customer base. However, not all fast food franchises have fared as well.

As beef prices have soared in recent years, many South African consumers have been pushed towards chicken-based chains.

The finding comes from the 2026 Fast Food & QSR Industry report by Rogerwilco, YouKnow Technologies, and Eighty20.

South Africa is experiencing its worst outbreak of foot-and-mouth disease in decades, which has disrupted cattle supply chains and pushed up beef prices.

Beef inflation surged during 2025, reaching 30% year-on-year. By April 2026, BFAP data showed that beef prices had increased by 83.7% year-on-year.

This put pressure on burger chains, with beef mince patties costing 23.8% more in April 2026 than a year earlier.

Tomatoes increased 10.9%, cheddar cheese 10.2%, lettuce 10.1%, and buns 5.5%. Electricity costs also increased by 10.4%.

The higher costs have changed how consumers approach meat. Around 80% of middle-income and affluent South Africans said they would consider reducing their meat consumption to save money.

However, only 4% said they would consider becoming vegetarian. This has benefited chicken-focused chains.

Between 2023 and 2025, Steers and McDonald’s each lost 20% of their customer bases. Over the same period, Pedros more than doubled its customer base from 1.1 million to 2.5 million.

Pedros also recorded a 68% increase in online mentions between 2025 and 2026. This was the highest growth recorded by any brand in the report.

Other popular chicken-based chains, such as Nando’s and Hungry Lion, also increased their customer bases during the period.

The report attributed much of this shift to the economics of chicken. Around 22 million South Africans eat chicken, with Eighty20’s MAPS data showing almost identical consumption levels among black and white consumers.

As household budgets come under pressure, consumers are also looking for meals that provide enough food to justify the price.

This has benefited Pedros, which built its business around affordable flame-grilled chicken and has used value-focused promotions to compete with established brands.

For example, a Pedros “full meal” comprising a full chicken, large chips, 4 rolls, salad, and a 1.5-litre drink will only set customers back R200. In comparison, a full chicken at Nando’s currently costs R210.

The changing market also means consumers are less committed to a particular brand or protein, the report found.

They are increasingly willing to switch between chicken, beef and different fast-food chains depending on price and perceived value.