Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
Simbisa Brands Limited says its delivery business, which contributes just four percent to total revenue, presents significant headroom for growth as the group targets expansion and enhanced service standards across Zimbabwe.
The group plans to grow delivery coverage from 66 percent to 80 percent of outlets by year-end, supported by app-exclusive promotions, bundled offers and enhanced service quality, which are expected to drive double-digit growth in the segment by the end of financial year 2026.
“Delivery currently contributes just four percent of total revenue, presenting significant headroom for growth. Expansion of delivery coverage from 66 percent to 80 percent of outlets by year-end, coupled with app-exclusive promotions, bundled offers and enhanced service standards, will be key drivers of this growth,” said the company in its latest financial year results.
“Simbisa Zimbabwe is targeting a 15 percent delivery-segment contribution by the end of FY 2026.”
The group said its Zimbabwe operations delivered resilient revenue growth of five percent year-on-year in FY2025, despite a challenging economic environment marked by volatility and contracting consumer demand.
“Zimbabwe operations delivered resilient revenue growth of five percent year-on-year, despite economic headwinds and a contracting consumer environment,” Simbisa said.
Customer counts increased by seven percent in FY 2025 compared to the prior year, buoyed by menu innovation and aggressive value-led promotions and pricing strategies that successfully attracted volumes, offsetting a two percent decline in average spend.
A total of 48,7 million customers were served during the year.
“Delivery volumes rose sharply, growing 42 percent year-on-year, with contribution to turnover climbing to double digits in some brands. Delivery growth was supported by value-led and app-exclusive promotions, expanded delivery coverage and significant traction across delivery apps, with 80 percent of delivery orders now being placed digitally,” the company added.
It noted that operational efficiencies have been improving through zone optimisation, fleet complement increases, smart scheduling and productivity management, which have strengthened delivery performance and overall profitability.
During the period under review, Simbisa expanded its Zimbabwe footprint by 21 new outlets, while 18 were closed, resulting in a net addition of three new stores to close the financial year with 335 active outlets as of June 30, 2025.
There were 13 outlets refurbished in the same period under the ongoing refurbishment programme aimed at modernising the older store network.
Operating margins, however, came under pressure due to frequent power outages, which increased reliance on generators, driving up fuel and repair costs.
“Simbisa Zimbabwe has 31 net new counters planned for FY 2026, with a strategic focus on drive-thru formats and delivery optimisation to enhance convenience and broaden reach,” said the group.
“An additional 19 store refurbishments are planned for FY 2026 to continually modernise and refresh the existing network. Profitability will be safeguarded through increased local sourcing and workforce optimisation initiatives designed to protect margins against inflationary pressures, together with an expanded pilot solar program.”
Building on the success of its brand-focused operating model introduced in FY 2023, Simbisa said it is implementing a full organisational restructure in Zimbabwe, which started in July this year.
The decentralised structure will assign dedicated leadership and support functions to each brand, enhancing focus, accountability and agility.
This shift, the company said, will “enable faster decision-making, brand-specific resource allocation and stronger alignment with customer needs, positioning the business to drive operational efficiency, accelerate growth and deliver long-term shareholder value.”
Meanwhile, the firm paid close to US$1 million to the Zimbabwe Revenue Authority (Zimra) in Fast-Food Tax between January and June 2025, demonstrating its commitment to compliance and national development, while maintaining competitiveness in a challenging economic environment.
“Between January and June 2025, Simbisa contributed close to US$1 million in Fast-Food Tax to the Zimbabwe Revenue Authority (Zimra). This substantial contribution underscores Simbisa’s position as the leading formal sector player, committed to transparency and compliance whilst supporting national development through our tax contributions,” said the group.
The tax, implemented at the beginning of the year, is levied on a per-unit basis for various fast foods and is aimed at generating revenue for the Government.
Additionally, the tax is meant to promote healthy eating and combat the rise of obesity and non-communicable diseases.
It is charged on fast foods such as pizza, burgers, French fries and doughnuts.
