AME

The Group operates in 17 countries in the AME region outside of South Africa.

Trading conditions

Africa’s economic recovery post-COVID-19 continues to lag, and several African economies encountered strong headwinds in 2023, including high inflation, which mostly exceeded central bank inflation targets and long-term trends. Double-digit inflation rates were recorded in Zambia, Botswana, Angola, Nigeria, Ethiopia and Zimbabwe. Inflation in Sudan exceeded 300%. Countries that depend on tourism, including Botswana, Namibia and Mauritius, are yet to experience a total recovery in that sector.

Performance and focus areas

The lifting of COVID-19 trading restrictions meant a bounce in sales activities across the region, except for the United Arab Emirates, with trading back to pre-pandemic levels. The recovery of Casual Dining Restaurant sales was pleasing, given that they declined the most during COVID-19.

System-wide sales increased by 30.9% while revenue increased 24% to R428 million (2022: R345 million). Operating profit declined to R24 million (2022: R34 million) while the operating profit margin decreased to 5.7% (2022: 9.9%). Steers, Debonairs Pizza, Wimpy and Mugg & Bean accounted for more than 94.3% of turnover across AME. Improved trading conditions in 2023 meant financial assistance for our franchise partners was also wound down.

The home delivery channels gained traction in Botswana, Ethiopia, Kenya, Sudan and Nigeria as consumers increasingly enjoy this convenient option. Debonairs Pizza and Steers online ordering platforms were launched in Zambia. An online ordering platform for Debonairs Pizza was also launched in Nigeria, while a Steers online ordering platform was launched in the United Arab Emirates. In several countries, our franchise partners have invested in call centres and centralised kitchens to support the home delivery channel.

In Angola, the Mugg & Bean On-the-Move restaurants have been well-received by consumers and have achieved sales well ahead of expectations. Two new On-the-Move restaurants will open in 2024, taking the total to six in that market.

Debonairs Pizza opened its first restaurants in Oman and the Kingdom of Saudi Arabia, while the Steers brand was introduced to the United Arab Emirates. The franchise support team in the United Arab Emirates was bolstered to support the planned increase in activity in the Middle East. This investment is necessary to enable us to scale up our franchising platform in the Gulf Coast countries.

Famous Brands continue to grow its footprint of Company-owned restaurants in selected markets, including 15 new restaurants in Nigeria and six new restaurants in Botswana.

In 2023, 27 restaurants were revamped or relocated (2022: 20). We continued to roll out self-service ordering terminals and digital menu screens across the region.