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Integrated Annual Report

Strategy

Consumer technology investments

Consumer technology investments

Embracing technological advancements has enabled our restaurants to enhance efficiency and meet the evolving consumer demands of an increasingly digital age.

Changing consumer technology remains a key driver in the restaurant industry as consumers seek frictionless ways to interact with brands. Famous Brands is capitalising on consumer-facing technology to enhance the overall consumer experience while supporting franchise partners in running more profitable businesses.

Overseeing our technology investments

A cross-functional working group comprising senior management from different brands and disciplines manages consumer-facing technology initiatives, supported by Project Management Office (PMO), which sits within the IT function. With input from executive leadership and driven by technology leadership, this working group allocates the budget and ensures that projects are aligned with the company's overarching corporate strategy.

The Investment Committee reviews the returns of our technology projects and recommends capital allocation for Board approval.

The Audit and Risk Committee oversees the Group's technology governance, cybersecurity risks and risks associated with technology deployment.

Mugg & Bean Mobile App

Investment in own delivery capabilities

We continue to invest in the delivery channel to provide our franchise network with a competitive advantage and consumers with a seamless ordering experience.

Ordering channels

Ordering for collection or delivery is enabled through call centres, websites, and mobile applications. Consumers use the most convenient platform at the time and switch between different platforms as needed.

We consider a mobile-first approach as consumers increasingly engage with our brands using smartphones. All Leading Brands have a mobile application, and this channel is promoted in-store, on product packaging and through advertising activities. We continue to enhance our brands' mobile applications and websites to offer a seamless ordering experience.

Our four inbound South African call centres, which serve over 90% of our Leading Brands network, ensure that consumer ordering calls are answered promptly and meet our set standards. We measure their performance across several metrics, including call order rates, order abandonment rates, and sales per minute. We have introduced call centres in certain SADC countries.

Delivery technology

We work with a technology partner that provides driver and route-tracking software to ensure that our deliveries are completed efficiently and on time. Drivers use Android devices that provide ongoing communication, map their delivery route, and accept payments. This significantly reduces costs for our franchise partners.

Delivery hub model

Our delivery hub model has led to an overall increase in positive consumer reviews. This is a key differentiator in attracting consumers away from third-party aggregators.

The delivery channel incurs high input costs and is fiercely competitive, as consumers seek the lowest delivery fees. Established in 2023, our delivery hub model enables one franchise partner to fulfil deliveries for multiple restaurants within a designated radius. This results in cost savings and efficiencies for franchise partners while improving delivery times, consumer experience and driver productivity. The model allows for more flexibility in how franchise partners are paid and incentivised, resulting in additional savings. The hubs achieve an average on-time delivery rate of 82%, representing a significant improvement over the previous model, in which franchise partners handled their own deliveries.

In South Africa, we currently operate 51 delivery hubs to service Leading Brands across seven regions, serving 305 restaurants. We continue to roll out the delivery hub models in South Africa and are exploring additional opportunities in other SADC and AME markets. We have one delivery hub in Botswana serving seven restaurants and two in Zambia serving 10 restaurants.

Munch Software POS implementation

POS systems are a cornerstone technology in restaurants, integrating sales, stock management, and reporting functions into a single platform. In 2025, we continued to implement the Munch Software POS system across our CDR network. The system is more cost-effective for franchise partners; the monthly fees are lower, and being cloud-based, it does not require expensive hardware. The system offers frequent software updates and greater standardisation across the franchise network. At year-end, 318 restaurants had implemented the Munch Software POS system.

Importantly, our strategic shareholding in Munch Software elevates this from a simple supplier relationship. It allows us to have a stronger influence on the software development pipeline and improved responsiveness to our requests. The Munch Software POS model also offers additional options for vertical integration, spanning from our Supply Chain to e-commerce capabilities.

Other key technology focus areas

Simplifying payment processes

We review our payment systems to ensure proper integration into our POS systems. We aim to introduce a payment gateway to strengthen payment controls and improve operational efficiencies at the restaurant level for franchise partners.

Building our data capabilities

We began building a solid foundation for our data analytics and business intelligence capabilities. Here, we aim to improve our customer-centricity and enhance efficiency and productivity while better aligning our Supply Chain's production with demands from our Brands.

Customer engagement

Loyalty programmes, especially at CDRs, boost revenues by increasing customer frequency, providing upselling opportunities and offering greater convenience through app-enabled experiences. We continually review and enhance our customer loyalty programmes.

In 2026, we will develop a new consumer engagement platform to enhance personalised communication with consumers. The platform is designed to drive frequency and retention while providing deeper insights into consumer behaviour.

We continue to evolve our e-commerce capabilities to reduce transaction costs and improve the consumer experience.

Improving operational efficiencies at restaurants

We continued with our self-service terminals roll out in our QSR and CDR networks. These provide an enhanced digital experience, allowing for order customisation while eliminating errors. Currently, 435 South African restaurants have self-service terminals. Advantages include increased transaction sizes through upselling prompts, higher order volumes, shorter queues, and savings resulting from the reduction in the number of cashiers required. We introduced self-service terminals in Kenya, two at Debonairs Pizza and one at Steers.

In South Africa, 89% of our QSR brands feature digital menu boards that provide a visually appealing food offering, agility in promotions and special offers. It also reduces the time to roll out menu changes from weeks to days.

The rollout of kitchen display systems across the network has yielded tangible results, including improved preparation times, which enable quicker completion of orders.

Strategic Performance
Group Financial Director’s Report