Study Period | 2017 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 10.16 Billion |
Market Size (2030) | USD 20.11 Billion |
CAGR (2025 - 2030) | 14.63 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
South Africa Foodservice Market Analysis
The South Africa Foodservice Market size is estimated at 10.16 billion USD in 2025, and is expected to reach 20.11 billion USD by 2030, growing at a CAGR of 14.63% during the forecast period (2025-2030).
The South African foodservice industry is experiencing significant transformation driven by changing consumer preferences and demographic shifts. The country's robust tourism sector plays a vital role in shaping the industry, with approximately 2.5 million tourists visiting South Africa in 2022, contributing substantially to foodservice revenue. This influx of international visitors has led to increased demand for diverse culinary offerings and elevated dining experiences. The industry has responded by expanding its multicultural offerings, particularly in urban centers where both domestic and international consumers seek authentic global cuisines. The integration of various cultural influences has resulted in a vibrant and diverse foodservice landscape that caters to both traditional and contemporary tastes.
Digital transformation and technological integration have revolutionized the foodservice industry's operational dynamics. The rise of food delivery platforms has created new opportunities for market expansion, with Mr. D Food controlling 30% of the food delivery industry while Uber Eats maintains a 25% market share. These platforms have not only enhanced customer convenience but have also enabled restaurants to expand their reach beyond traditional dining rooms. The industry has witnessed significant innovation in payment solutions, digital menu boards, and customer relationship management systems, improving operational efficiency and customer experience. The adoption of these technologies has become increasingly crucial for maintaining competitiveness in the foodservice industry.
The industry is witnessing substantial infrastructure development and expansion of commercial spaces, creating new opportunities for foodservice establishments. In 2022, approximately 200,000 square meters of regional shopping space was developed, providing new venues for restaurants and food outlets. This expansion has been accompanied by a growing trend toward experiential dining, with restaurants focusing on creating unique atmospheres and memorable dining experiences. The industry has also seen a notable shift in consumer behavior, with approximately 17.8 million diners visiting restaurants across the country in 2022, indicating strong domestic demand for dining out experiences.
Demographic changes and evolving consumer preferences are reshaping the industry's landscape. The growing Indian South African population, which comprises about 2.5% of the total population (approximately 1.6 million people) in 2023, has influenced the diversity of culinary offerings. The foodservice industry in South Africa has also adapted to changing consumption patterns, evidenced by the significant coffee consumption of 31.5 million kilograms in 2022. This has led to the proliferation of specialty coffee shops and casual dining establishments catering to various dietary preferences and cultural tastes. Restaurants are increasingly focusing on incorporating locally sourced ingredients and sustainable practices to meet growing consumer demand for environmentally conscious dining options.
South Africa Foodservice Market Trends
Quick service restaurants remain popular in South Africa, with international and local chains dominating the market, led by Mcdonald's, KFC, Burger King, Chicken Licken, and Chesa Nyama
- Quick-service restaurants held a significant share of the market in terms of the number of outlets, amounting to 79.20%, in 2022. Quick-service chains that offer burgers, pizza, fried chicken, and sandwiches are very popular in South Africa, including McDonald's, KFC, and Burger King, which have over 300, 1,000, and 97 outlets, respectively. In addition to international chains, there are many popular local fast food brands in South Africa, such as Chesa Nyama and Chicken Licken, which is known for its crispy fried chicken and garlic sauce. Cafes and bar outlets are the fastest-growing in the market in terms of the number of outlets, projected to register a growth of 2.60% in the forecast period. However, the demand for freshly brewed coffee is on the rise.
- The country records around a 2.3% average annual growth rate in coffee consumption. Brands with strong identities are most likely to thrive and grow. This is evidenced by the development of coffee chains that have grown from a single store into a franchise and further into a global brand spreading from Cape Town to deep into Africa. Many cafes in South Africa are also catering to the increasing demand for healthy food options by offering vegan and vegetarian options on their menus. Cloud kitchen is the second fastest-growing segment in the market in terms of the number of outlets. The segment is projected to register a CAGR of 9.04% in the forecast period. The growth of cloud kitchens in South Africa is in line with the increasing popularity of food delivery services such as Uber Eats, Mr. D Food, and OrderIn. These services have led to an increase in demand for food delivery-only operations. Many cloud kitchens have emerged in South Africa in recent years, especially in cities like Johannesburg and Cape Town. Some of the popular cloud kitchen brands in South Africa include Knead Bakery, The Kitchen Collective, and On-Demand Kitchens.
Asian cuisine driving demand for full-service restaurants in South Africa, with popular dishes including braai, baboti, and bunny chow
- The average order value was observed to be the highest among full service restaurants in 2022 compared to other foodservice types, with a price of USD 37.7. The demand for FSR in the country is driven by Asian cuisine, which contributed significantly to the South African foodservice market. Beluga, Taste of Thai, and Bao Down are some of the country's popular Asian restaurants. Popular dishes offered by FSR outlets in the country are Braai, Baboti, and Bunny Chow, which were priced at USD 8.6, USD 7.25, and USD 7.75 per 300 grams, respectively, in 2022.
- Cloud kitchens are expected to grow at a faster rate in the market. The average order value of cloud kitchens was USD 13.8 in 2022. Food delivery apps, such as Uber Eats and Mr. D Food, which are strong forces in the food delivery industry, have enabled the cloud kitchen model to scale better. For instance, Mr. D Food has over 5 million downloads and over 1 million active users. Similarly, Uber Eats has a 25% market share in South Africa and is anticipated to see a 40% revenue increase by 2027. This has created a significant opportunity for food businesses to expand their reach. Popular cloud kitchens in the country are KitchenCo., Kitchen Maestro, and Food Junction. The average order value of quick service restaurants increased by 13.27% from 2017 to 2022. The entry of various national and international players in the QSR segment has significantly boosted the chained quick service fast food outlet market due to the rapidly expanding middle-income group and increased consumer spending on fast food. Popular dishes offered by QSR outlets in the country include Burgers, Pizza, and Bitlong, which were priced at USD 3.25, USD 4.7, and USD 3.5 per 300 grams, respectively, in 2022.
Segment Analysis: Foodservice Type
Quick Service Restaurants (QSR) Segment in South African Foodservice Market
Quick service restaurants dominate the South African foodservice market, commanding approximately 48% market share in 2024. The segment's strong performance is driven by the increasing consumption of convenience foods and the widespread presence of both international and local QSR chains across the country. Major international chains like KFC, McDonald's, and Burger King have established a strong foothold in the market, with KFC alone operating over 960 outlets and McDonald's having more than 300 restaurants across nine provinces. The segment's growth is further supported by the rising adoption of South African food delivery services, with platforms like Mr. D Food and Uber Eats facilitating easier access to QSR offerings. The popularity of meat-based cuisines, particularly chicken and beef products, continues to drive QSR sales, while the segment also sees increasing demand for plant-based and healthier menu options.

Cloud Kitchen Segment in South African Foodservice Market
Cloud kitchens are emerging as the most dynamic segment in the South African foodservice market, projected to grow at approximately 17% CAGR from 2024 to 2029. This remarkable growth is primarily driven by the increasing penetration of food delivery platforms and changing consumer preferences toward convenient dining options. The segment's expansion is supported by lower operational costs compared to traditional restaurants, with initial investment requirements ranging from USD 14,000 to USD 30,000. The growth of food delivery platforms like Uber Eats, which holds a 25% market share and expects a 40% revenue increase by 2027, and Mr. D Food, with over 5 million downloads and more than 1 million active users, is creating significant opportunities for cloud kitchen operators. Popular cloud kitchen brands like KitchenCo. and Food Junction are capitalizing on this trend by offering diverse cuisine options and optimizing their operations for delivery-only services.
Remaining Segments in Foodservice Type
The full-service restaurants and cafes & bars segments complete the South African foodservice market landscape, each serving distinct consumer needs and preferences. Full-service restaurants cater to consumers seeking premium dining experiences, offering diverse cuisines including Asian, European, and Middle Eastern options. The segment benefits from South Africa's growing tourism industry and increasing consumer interest in experiential dining. Meanwhile, the cafes & bars segment serves the growing coffee culture and social dining preferences, with both international chains and local establishments expanding their presence. This segment has particularly benefited from the rising coffee consumption trends and the emergence of specialized coffee shops and casual dining establishments across major urban centers.
Segment Analysis: Outlet
Independent Outlets Segment in South African Foodservice Market
Independent outlets dominate the South African foodservice market, commanding approximately 72% market share in 2024. The segment's strong presence is primarily driven by the popularity of traditional and local fast-food establishments that offer unique and authentic South African cuisines. Independent quick-service restaurants (QSRs) occupy a significant portion of this segment, with operators focusing on traditional dishes like Bunny Chow, Gatsby, and local grilled meats. These outlets are particularly successful due to their ability to adapt to local tastes, offer competitive pricing, and maintain strong connections with their local communities. The segment's growth is further supported by the increasing number of independent cafes, specialty restaurants, and street food vendors who are innovating with fusion cuisines while maintaining traditional recipes as their foundation.
Chained Outlets Segment in South African Foodservice Market
The chained outlets segment is projected to demonstrate robust growth with an expected CAGR of approximately 15% during 2024-2029. This growth trajectory is primarily driven by the aggressive expansion plans of international brands like KFC, McDonald's, and Starbucks, which are continuously increasing their presence across South African cities. The segment's expansion is supported by increasing urbanization, rising disposable incomes, and growing consumer preference for standardized quality and service. Chained outlets are increasingly implementing innovative technologies such as self-service kiosks and digital ordering systems to enhance operational efficiency and customer experience. The segment's growth is further bolstered by franchising opportunities, which offer relatively low capital requirements and risks compared to company-operated locations, making it an attractive business model for local entrepreneurs.
Segment Analysis: Location
Standalone Segment in South African Foodservice Market
Standalone locations continue to dominate the South African foodservice market, holding approximately 86% market share in 2024. The segment's strong performance is driven by rapid infrastructural development and expansion of commercial real estate, including shopping malls and office buildings, which has created new opportunities for foodservice establishments to establish themselves in high-traffic locations. The growth in the standalone segment is supported by continuing investment in new locations with innovative dining concepts and increased spending on technology, particularly by fine dining operators. Many standalone foodservice establishments are strategically positioned in newly developed malls across regions like Mpumalanga, KwaZulu-Natal, and the Eastern Cape, capitalizing on the development of around 200,000 sq. m of regional shopping space.
Leisure Segment in South African Foodservice Market
The leisure segment is experiencing remarkable growth in the South African foodservice market, projected to expand at approximately 18% during 2024-2029. This growth is primarily driven by South Africa's position as a prominent tourist destination, known for its wildlife and cultural heritage. The segment's expansion is supported by the increasing number of foodservice outlets in tourist areas such as game reserves, beaches, and national parks. Movie theaters, amusement parks, gaming areas, and museums are among the popular leisure destinations contributing to the segment's growth. The rising tourist spending on food and beverages, averaging over USD 30 per day, coupled with the expansion of diverse dining options in leisure locations, is fueling the segment's robust growth trajectory.
Remaining Segments in Location
The South African foodservice market's location segmentation also includes retail, lodging, and travel segments, each playing a distinct role in shaping the industry. Retail locations, particularly in supermarkets, grocery shops, and shopping centers, provide convenient dining options for shoppers. The lodging segment, encompassing hotels and various accommodation types, offers unique dining experiences with both local and international cuisine options. Travel locations, including airports, railway stations, and highways, cater to the growing number of travelers with quick-service restaurants and casual dining options. These segments collectively contribute to the diverse foodservice landscape in South Africa, meeting the varying needs of consumers across different locations.
South Africa Foodservice Industry Overview
Top Companies in South African Foodservice Market
The South African foodservice market is characterized by active product innovation and strategic expansion initiatives by major players. Companies are focusing on introducing new menu items, particularly plant-based and vegan options, to cater to evolving consumer preferences and dietary requirements. Operational agility is demonstrated through the adoption of digital technologies, including self-service kiosks and mobile ordering platforms, enhancing customer experience and operational efficiency. Strategic moves in the market primarily revolve around franchise expansion, with companies leveraging the franchise model to penetrate new geographical areas while minimizing capital requirements. Market leaders are also strengthening their positions through strategic partnerships with food delivery platforms and local suppliers, ensuring better market reach and supply chain optimization. The emphasis on localization is evident in the sourcing strategies, with many companies prioritizing local ingredients and adapting their offerings to regional tastes.
Mix of Global Giants and Local Players
The South African foodservice industry exhibits a fragmented structure with a balanced mix of international chains and domestic operators. Global quick-service restaurant chains maintain a strong presence through extensive franchise networks, while local players leverage their understanding of regional preferences and established community connections. The market demonstrates moderate consolidation, with the top players collectively holding a significant but not dominant share, allowing room for smaller operators and new entrants to establish their presence. The competitive dynamics are shaped by the coexistence of large conglomerates operating multiple brands and specialist operators focusing on specific cuisine types or service formats.
Merger and acquisition activity in the market is characterized by strategic consolidations aimed at expanding brand portfolios and achieving operational synergies. International players often enter the market through partnerships with established local operators, benefiting from their market knowledge and existing infrastructure. The franchise model remains the preferred mode of expansion, particularly for quick-service restaurants and casual dining chains, as it allows for rapid market penetration while managing operational risks. Local players are increasingly forming strategic alliances to compete more effectively with global chains, particularly in areas such as supply chain management and technology adoption.
Innovation and Adaptation Drive Market Success
Success in the South African foodservice market increasingly depends on operators' ability to balance standardization with localization. Incumbent players can strengthen their market position by investing in digital transformation, enhancing delivery capabilities, and developing innovative menu offerings that cater to local tastes while maintaining international quality standards. The development of strong supplier relationships and efficient supply chain networks is crucial for maintaining competitive pricing and ensuring consistent quality. Market leaders must also focus on sustainability initiatives and health-conscious offerings to align with evolving consumer preferences and regulatory requirements.
For contenders looking to gain market share, differentiation through unique value propositions and targeted market positioning is essential. This includes focusing on underserved market segments, developing innovative service formats, and leveraging technology for operational efficiency. Success also depends on understanding and adapting to the diverse cultural preferences across different regions of South Africa. The ability to navigate regulatory requirements, particularly regarding food safety and hygiene standards, while maintaining operational efficiency, will be crucial for both established players and new entrants. Building strong brand recognition through effective marketing strategies and customer engagement initiatives remains vital for long-term success in this competitive market.
South Africa Foodservice Market Leaders
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Famous Brands Limited
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McDonald's Corporation
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Restaurant Brands International Inc.
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Spur Corporation Limited
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Yum! Brands Inc.
- *Disclaimer: Major Players sorted in no particular order
South Africa Foodservice Market News
- July 2022: Spur Corporation planned to open 32 new restaurants in South Africa and nine stores internationally by June 30, 2023.
- July 2022: KFC opened a new outlet in Pinelands, Western Cape, which is ultra-modern and features some of the latest restaurant technology. The store features digital menu boards in each of the dual-lane drive-thru. It also boasts dedicated self-service kiosks for walk-in customers, a dedicated window for delivery drivers, and digital menu boards.
- June 2021: Spur Corporation opened its first Drive Thru at Heinrich Ave, Karenpark, Pretoria, to provide easy access to customers.
South Africa Foodservice Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. KEY INDUSTRY TRENDS
- 4.1 Number Of Outlets
- 4.2 Average Order Value
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4.3 Regulatory Framework
- 4.3.1 South Africa
- 4.4 Menu Analysis
5. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2030 and analysis of growth prospects)
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5.1 Foodservice Type
- 5.1.1 Cafes & Bars
- 5.1.1.1 By Cuisine
- 5.1.1.1.1 Bars & Pubs
- 5.1.1.1.2 Cafes
- 5.1.1.1.3 Juice/Smoothie/Desserts Bars
- 5.1.1.1.4 Specialist Coffee & Tea Shops
- 5.1.2 Cloud Kitchen
- 5.1.3 Full Service Restaurants
- 5.1.3.1 By Cuisine
- 5.1.3.1.1 Asian
- 5.1.3.1.2 European
- 5.1.3.1.3 Latin American
- 5.1.3.1.4 Middle Eastern
- 5.1.3.1.5 North American
- 5.1.3.1.6 Other FSR Cuisines
- 5.1.4 Quick Service Restaurants
- 5.1.4.1 By Cuisine
- 5.1.4.1.1 Bakeries
- 5.1.4.1.2 Burger
- 5.1.4.1.3 Ice Cream
- 5.1.4.1.4 Meat-based Cuisines
- 5.1.4.1.5 Pizza
- 5.1.4.1.6 Other QSR Cuisines
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5.2 Outlet
- 5.2.1 Chained Outlets
- 5.2.2 Independent Outlets
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5.3 Location
- 5.3.1 Leisure
- 5.3.2 Lodging
- 5.3.3 Retail
- 5.3.4 Standalone
- 5.3.5 Travel
6. COMPETITIVE LANDSCAPE
- 6.1 Key Strategic Moves
- 6.2 Market Share Analysis
- 6.3 Company Landscape
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6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 6.4.1 Domino's Pizza Inc.
- 6.4.2 Famous Brands Limited
- 6.4.3 Laudian Franchise Management One Pty Ltd
- 6.4.4 McDonald's Corporation
- 6.4.5 Restaurant Brands International Inc.
- 6.4.6 Roman's Pizza
- 6.4.7 Spur Corporation Limited
- 6.4.8 Vida e Caffè Holdings (Pty) Ltd
- 6.4.9 Yum! Brands Inc.
7. KEY STRATEGIC QUESTIONS FOR FOODSERVICE CEOS
8. APPENDIX
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8.1 Global Overview
- 8.1.1 Overview
- 8.1.2 Porter’s Five Forces Framework
- 8.1.3 Global Value Chain Analysis
- 8.1.4 Market Dynamics (DROs)
- 8.2 Sources & References
- 8.3 List of Tables & Figures
- 8.4 Primary Insights
- 8.5 Data Pack
- 8.6 Glossary of Terms
South Africa Foodservice Industry Segmentation
Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants are covered as segments by Foodservice Type. Chained Outlets, Independent Outlets are covered as segments by Outlet. Leisure, Lodging, Retail, Standalone, Travel are covered as segments by Location.Foodservice Type | Cafes & Bars | By Cuisine | Bars & Pubs | |
Cafes | ||||
Juice/Smoothie/Desserts Bars | ||||
Specialist Coffee & Tea Shops | ||||
Cloud Kitchen | ||||
Full Service Restaurants | By Cuisine | Asian | ||
European | ||||
Latin American | ||||
Middle Eastern | ||||
North American | ||||
Other FSR Cuisines | ||||
Quick Service Restaurants | By Cuisine | Bakeries | ||
Burger | ||||
Ice Cream | ||||
Meat-based Cuisines | ||||
Pizza | ||||
Other QSR Cuisines | ||||
Outlet | Chained Outlets | |||
Independent Outlets | ||||
Location | Leisure | |||
Lodging | ||||
Retail | ||||
Standalone | ||||
Travel |
South Africa Foodservice Market Research FAQs
How big is the South Africa Foodservice Market?
The South Africa Foodservice Market size is expected to reach USD 10.16 billion in 2025 and grow at a CAGR of 14.63% to reach USD 20.11 billion by 2030.
What is the current South Africa Foodservice Market size?
In 2025, the South Africa Foodservice Market size is expected to reach USD 10.16 billion.
Who are the key players in South Africa Foodservice Market?
Famous Brands Limited, McDonald's Corporation, Restaurant Brands International Inc., Spur Corporation Limited and Yum! Brands Inc. are the major companies operating in the South Africa Foodservice Market.
Which segment has the biggest share in the South Africa Foodservice Market?
In the South Africa Foodservice Market, the Quick Service Restaurants segment accounts for the largest share by foodservice type.
Which is the fastest growing segment in the South Africa Foodservice Market?
In 2025, the Quick Service Restaurants segment accounts for the fastest growing by foodservice type in the South Africa Foodservice Market.
What years does this South Africa Foodservice Market cover, and what was the market size in 2025?
In 2025, the South Africa Foodservice Market size was estimated at 10.16 billion. The report covers the South Africa Foodservice Market historical market size for years: 2017, 2018, 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South Africa Foodservice Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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South Africa Foodservice Market Research
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