Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
SIMBISA Brands’ Zimbabwe operations recorded a 39 percent increase in operating profit for the year ended June 30, 2026, driven by record customer traffic, network expansion and a sharp increase in delivery orders despite rising operating costs.
The fast-food group’s Zimbabwe market served a record 53,6 million customers, representing an 11 percent increase from the prior year comparative period, while revenue grew 23 percent.
The performance underscores the growing scale of Simbisa’s domestic operations, with higher customer volumes and increased spending providing momentum despite the introduction of the Fast-Food Tax, higher employee costs and elevated energy expenses.
Simbisa Brands group chairman Mr Addington Chikane said the Zimbabwean operation delivered strong operational and financial performance during the year.
“Zimbabwe delivered strong operational and financial performance during FY2026.
“The market served a record 53,6 million customers during the year, representing an 11 percent increase on the prior year, while revenue increased by 23 percent. Customer growth was as a result of deliberate focus on compelling value propositions, improved food quality and enhanced service standards.”
A key growth driver was the rapid expansion of the company’s delivery business, pointing to a shift in consumer purchasing patterns towards convenience and digital ordering.
“Delivery orders increased by 75 percent compared to the prior year, contributing to an 11 percent increase in average spend,” Mr Chikane said.
The combination of higher customer traffic and increased average spend helped lift revenue while strengthening Simbisa’s platform for further growth.
The company also continued expanding its physical footprint, adding 17 net new stores and refurbishing six existing outlets during the year.
“During the year, Zimbabwe added a net 17 new stores and refurbished 6 existing outlets, ending FY2026 with 352 counters.”
The enlarged network gives Simbisa a broader platform to capture demand for convenience food while supporting the growth of delivery and digital ordering channels.
The expansion was achieved alongside a substantial increase in earnings despite mounting cost pressures.
“Operating profit increased by 39 percent compared to the prior year, with operating margins reasonably protected despite the impact of the Fast-Food Tax, higher employee costs and elevated energy expenses. US$2,1 million was paid in Fast-Food Tax for the year.”
“Procurement savings, productivity improvements and disciplined control of operating expenditure enabled the business to absorb some of these pressures while continuing to invest in customer experience and long-term growth.”
The rapid growth in delivery orders provides an additional growth channel beyond traditional restaurant traffic.
The 75 percent increase in delivery orders, coupled with an 11 percent increase in average spend, indicates that digital and convenience-led consumption are becoming increasingly important to the group’s Zimbabwe strategy.
Mr Chikane said the group was entering FY2027 with positive customer momentum and a stronger operating base, although consumer spending remained constrained.
He said the business would continue navigating elevated taxation, employee costs, input inflation and climate-related risks, which could place pressure on margins.
“Our strategic priorities remain unchanged. We will continue to focus on delivering service compelling customer value while maintaining high standards of food quality and service.
“Investment in delivery, digital ordering, drive-thru formats, selective network expansion and store refurbishments will continue where these initiatives enhance convenience, strengthen our brands and generate optimal returns.”
Simbisa will also continue targeting efficiencies and strengthening its operating resilience.
“The group will remain focused on extracting efficiencies from its cost base while strengthening its supply chain resilience and investing selectively in alternative energy solutions where these deliver sustainable operational and financial benefits.”
“The board believes that the group’s strong brands, customer-focused strategy and disciplined approach to execution provide a sound foundation for continued profitable growth and sustainable long term value creation.”
