Simbisa Spreads Into 31 Rivers – Eduzim News

Simbisa Brands Limited, one of Africa’s leading quick-service restaurant operators, has announced ambitious plans to open 31 additional stores during the remainder of its 2025 financial year. This bold move comes as part of the company’s strategy to solidify its market dominance and cater to a growing and evolving customer base.

Aggressive Expansion Strategy

The new store openings are part of a broader initiative to enhance Simbisa’s operational footprint across its markets, primarily in Zimbabwe. This comes on the back of an already impressive growth trajectory. During the financial year ending September 2024, Simbisa added 47 new locations, bringing its total number of trading counters to an impressive 330.

According to Basil Dioniso, Chief Executive Officer of Simbisa Brands Limited Holdings, the company is committed to meeting its customers’ evolving needs while strengthening its competitive edge. “A net of five new company-operated counters were opened during the quarter, with 31 additional store openings planned for the remainder of the financial year,” Dioniso said in a recent trading update.

In addition to opening new outlets, Simbisa has committed to refurbishing 44 of its existing counters during the same period, aiming to elevate the customer experience through modernized designs and upgraded facilities.

Enhancing Brand Equity and Customer Experience

The company is not only focused on expanding its footprint but also on enhancing its brand equity. Investments have been made to revitalize the Pizza Inn brand and introduce innovative products across all major brands in Simbisa’s portfolio. These enhancements are further supported by new value offerings and robust promotional campaigns, which have significantly boosted customer traffic.

During the first quarter of the 2025 financial year, Simbisa served a staggering 12.1 million customers, marking a 12% year-on-year increase in customer count. This surge contributed to a 4% revenue growth compared to the same period in the previous year.

Operational Challenges

Despite its remarkable growth, Simbisa has faced several operational headwinds, primarily driven by external economic factors. Energy costs soared, doubling year-on-year due to a 54% increase in electricity tariffs and ongoing power outages that disrupted operational efficiency. Inflationary pressures further strained profit margins, despite the company’s rigorous cost-containment measures.

The company has acknowledged these challenges but remains optimistic about its ability to sustain profitability through strategic initiatives. “While soaring energy costs and inflation posed significant challenges, our proactive store openings and enhanced marketing initiatives have allowed us to maintain growth momentum,” said Dioniso.

Market Share and Future Prospects

Simbisa’s growth strategy also includes intensified marketing efforts to increase brand visibility and drive top-line performance. These initiatives have positioned the company as a market leader in quick-service dining, particularly in Zimbabwe, where the bulk of the new store openings are set to take place.

The planned 31 new counters signal Simbisa’s confidence in its ability to adapt to market demands and cater to its ever-expanding customer base. Coupled with refurbishments and new product offerings, the company is well-poised to deliver a superior dining experience and sustain its growth trajectory.

Conclusion

Simbisa Brands Limited’s continued expansion underscores its resilience and commitment to growth despite a challenging operating environment. By opening new stores, refurbishing existing ones, and launching innovative products, the company is setting itself up for long-term success. However, with rising operational costs and inflationary pressures, Simbisa’s ability to navigate economic hurdles will be critical to achieving its ambitious targets.

As the company moves forward, all eyes will be on how effectively it balances growth with profitability in an increasingly competitive and volatile market. For now, Simbisa’s aggressive expansion plan and strong customer growth reaffirm its position as a leading player in Africa’s quick-service restaurant industry.

Related