Simbisa Brands: Growth Through Expansion and Ref...

Simbisa Brands: Growth Through Expansion and Refurbishment

Audrey Galawu

Assistant Editor

Simbisa Brands Limited is doubling down on growth by opening new stores while simultaneously refurbishing older ones. This strategic push comes as the company navigates challenging operating conditions across its regional markets.

Despite obstacles like currency devaluation in Zimbabwe, energy shortages, and socio-political unrest in Kenya, Simbisa remains committed to expanding its presence and enhancing customer experience.

Simbisa’s ambitious strategy to expand its store network is evident in its recent trading update for Q1 FY25, where the company reported a 6% increase in revenue year-on-year. Between September 30, 2023, and September 30, 2024, Simbisa opened 57 new company-operated outlets, including 5 in the quarter under review.

This brings the total number of outlets to 720, a mix of company-operated and franchised stores.

Despite the macroeconomic pressures in the country, where inflation and power outages continue to challenge business operations, the company has maintained a positive growth trajectory. The key to this success lies in Simbisa's ability to open new counters—47 new outlets were launched in Zimbabwe alone during the past year. These openings have not only increased the company’s market share but also driven a 12% year-on-year growth in customer counts in the country.

In its financial update in Q1 2025, Simbisa Brands CEO Basil Dioniso said the introduction of exciting new value offerings and intensified promotional activities have been instrumental in solidifying brand presence and driving increased customer footfall.

“In Q1 FY 2025, investments were made to refresh the Pizza Inn brand and develop new products across all of our key brands.

“A net of 5 new company-operated counters were opened during the quarter, with 31 additional store openings planned for the remainder of the financial year, primarily in Zimbabwe,” Dioniso said.

In addition to expanding its footprint, Simbisa is making substantial investments in refurbishing its existing stores to meet evolving customer expectations. This includes a significant program to refresh older outlets, especially in its Kenyan market, where the socio-political landscape has created additional operational hurdles.

By focusing on improving the customer experience through store upgrades, Simbisa aims to retain its competitive edge in markets where rapid expansion may be slower due to external factors.

For example, in Kenya, despite a 10% dip in customer footfall due to protests and unrest, the company still posted a 13% increase in revenue in US Dollar terms. Simbisa’s response to this disruption is to modernize its store network, investing in refurbishments and focusing on enhancing the dining experience at existing locations rather than pursuing aggressive new openings in the short term.

While Zimbabwe and Kenya are the flagbearers of Simbisa’s growth strategy, the company is not resting on its laurels in smaller markets. In Eswatini, Simbisa faced a 3% drop in revenue, reflecting broader regional challenges. However, the company remains committed to the market, planning a counter refurbishment initiative throughout FY25 to breathe new life into its outlets and rejuvenate customer interest.

Despite the varying degrees of success in its regional markets, Simbisa’s diversified portfolio of brands, which includes Chicken Inn, Pizza Inn, and Creamy Inn, continues to offer significant growth opportunities. In Kenya, after overcoming the initial impact of socio-political instability earlier this year, Simbisa is now focusing on modernizing its counter network, with refurbishments being a priority to stimulate customer visits.

The company’s focus on expansion and refurbishments goes hand in hand with a strong emphasis on enhancing customer service. During Q1 FY25, Simbisa trained 11,598 staff members across its brands, underscoring the company’s dedication to providing an exceptional dining experience. Customer feedback is actively solicited, with over 12,000 reviews collected in Q1 alone, enabling Simbisa to continuously improve its offerings.

The group is also innovating its menu and rolling out value-driven promotional campaigns to attract more foot traffic. For instance, the recent brand refresh of Pizza Inn and the introduction of new products across its portfolio are designed to strengthen its competitive position and foster brand loyalty.