Major threat to KFC and McDonald’s in South Africa

Weight-loss and weight-management medicines, such as Ozempic and Mounjaro, are becoming increasingly popular in South Africa. 

These types of medicine have seen their use skyrocket in South Africa, with their impact beginning to be felt in how much individuals consume and what they consume.

This has potentially significant ramifications for fast-food chains in South Africa, as spending data from Discovery Bank and Visa shows that individuals on this medication spend substantially less on takeaways.

Discovery Bank and Visa analysed data from more than 2.6 billion transactions across 12 million credit cards over the past year to see what South Africans are spending on and how they spend their money. 

The bank also analyses its own client data, which is complemented by a survey of 1,000 consumers earning more than R100,000 per year. 

This data is used to aid the bank and Visa in improving products and services for clients, to meet them where they are. 

Culminating in the SpendTrend26 report, the data also pointed to some significant trends in consumer behaviour in South Africa, with deep dives on online gambling and weight-loss drugs, among others. 

The report explained that GLP-1 medicines, sometimes commercially known as Ozempic, Wegovy, or Mounjaro, were originally developed to manage diabetes. 

However, they have increasingly gained popularity for their role in aiding weight loss, with usage volumes surging in the past five years. 

The medication is also becoming increasingly legitimate, and its usage is encouraged by some health professionals. In 2025, the World Health Organisation added GLP-1s to its Essential Medicines List. 

The report showed that 16% of South Africans surveyed reported spending on weight-loss support through dietitian programmes or weight-loss clinics. 

The trend is led by young individuals between 26 and 40, with Capetonians and women leading the charge. 

Apart from just spending on GLP-1s, 14% reported that they rely on the medication and other therapies to manage their weight. 

Impact on spending

The rise of GLP-1s is likely to have a significant impact on spending in South Africa, as it has when they have become increasingly popular in markets such as the United States.

GLP-1 treatment in the United States is widespread enough that it has become a major concern for fast-food chains, such as McDonald’s, KFC, and Burger King. 

As more people take this medication, spending on fast food is expected to decrease. Some analysts have even warned of an impact on food sales from retailers in America. 

In the United States, users of GLP-1 medications reduce their fast-food spending by around 8% within six months of starting treatment. Overall grocery spending also fell, but only by 5.3%.

Of major concern is that the impact tends to be overindexed towards high-income households, who are the primary users of the medication. 

These households are also the largest absolute spenders on fast food and consumption more generally, exaggerating the impact. 

A similar story appears to be playing out in South Africa, according to Discovery Bank’s data, with spending shifting substantially among households using GLP-1s. 

The majority of respondents using the medication said they are spending more on healthier foods, with a particular focus on vegetables and grains. 

Of concern for fast-food chains in South Africa will be data showing that 48% of respondents are spending less on takeaways and restaurants. 

Nearly half of those surveyed said they are spending less on alcohol, and 38% said they are spending less on groceries overall. 

This ties into broader spending habits seen by Discovery Bank and Visa, using a wider range of transaction data across South Africa. 

South Africans appear to be very health-conscious, with 58% purchasing supplements or vitamins as part of their wellness routines. 

Over half of all those tracked spend money on gym memberships, fitness classes or fitness events. 

Across these categories, most consumers report spending the same or more than they did in the previous year, highlighting the continued importance of health and well-being, Discovery Bank said.