How popular are fast food outlets in shopping centres?
A survey by Broll Property Intel’s Retail Snapshot for Quarter 3:2018 showed that whilst the year-on-year growth of South Africa’s food and beverage industry slowed to 0.1% as at July 2018, with restaurants and coffee shops experiencing a year-on-year decline of 1.6%, takeaway and fast food outlets experienced the highest year-on-year growth of 2.8%.
This positive trend was assessed by Broll Property Intel on the trading densities (TD) of a wide range of fast-food retailers across various shopping centres over a period of 5 years, with the following trends:
- When it came to what type of fast food topped the bill, pizza was the top choice over the 5-year period although it was overtaken by burgers in year four and pies in year five – both lower priced options that reflect tightening of wallets.
- Fast food tends to perform better in larger-sized centres where pizza is a top choice, while burgers are preferred in smaller centres.
- When looking at locational parameters, burgers are the top achievers in main cities and pies for outer-lying areas.
- When comparing the three major provinces, average trading densities (TD) in 12 months to August 2018 were the highest in Gauteng for burgers, chicken and fish, the Western Cape recorded the highest TD for pies, while pizza came out on top in KwaZulu-Natal.
- When looking at international versus local retailers, in terms of burgers, chicken and pizza, local retailers achieve higher trading densities (TD) with regards to pizza.
- Even though an increasing number of drive-thru’s have become evident over recent years, fast-food deliveries have now also become the norm – with Mr D Food and UberEATS holding a 90% market share when it comes to the fast-food delivery market.
- Mobile apps and online systems now allow for fast and effective order placing.
Broll’s Retail Snapshot Q3:2018 highlights the fact that the best performing fast-food category differs depending on the various parameters that can influence a business’ success, such as the centre size, its location, etc. The sectors-specific information that Broll Property Intel offers is of vital importance for both landlords and occupiers as they become aware of their target market, information about their location, the surrounding demographics, existing competition and more in-depth information, which all has an impact on their business.
Sources: www.broll.com; www.biz-community.com
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