Famous Brands Closes Dozens of Popular SA Fast-Food Restaurants Amid Economic Struggles

South Africa’s economic challenges have claimed yet another casualty as Famous Brands, the parent company behind beloved fast-food outlets such as Steers, Debonairs Pizza, and Fishaways, announced the closure of 47 restaurants in the past financial year. The closures, which also affected brands like Wimpy, Mugg & Bean, and Milky Lane, highlight the pressures faced by businesses operating in a tough consumer environment.

A Tough Year for a Leading Food Service Giant

Between 1 March 2023 and 29 February 2024, Famous Brands closed:

• 14 Steers outlets
• 5 Debonairs Pizza outlets
• 11 Fishaways outlets
• 7 Mugg & Bean restaurants
• 6 Wimpy restaurants
• 4 Milky Lane outlets

Even its premium Signature Brands portfolio saw closures, with 19 restaurants shutting down. Notably, 10 Fego Caffés were converted into Mugg & Bean outlets in an effort to adapt to shifting consumer preferences and market conditions.

The closures have not stopped, with an additional 14 Leading Brands outlets and 4 Signature Brands restaurants closing in the first half of the 2024/2025 financial year.

Signs of Recovery Amid Ongoing Challenges

Despite these closures, Famous Brands’ share price has shown resilience. From a low of R24 per share during the height of the COVID-19 pandemic in April 2020, the company has rallied by 185%, currently trading around R70 per share. This growth is a testament to the company’s strategic resilience and ability to adapt, even as local businesses grapple with an economy that seems strong on paper but remains challenging for many on the ground.

A Sobering Reality for South African Businesses

The closure of so many restaurants serves as a reminder that economic growth and currency stability don’t always translate into thriving businesses. For many South Africans, the perception of a stable rand contrasts starkly with the struggles faced by local enterprises.

As Famous Brands works to navigate these economic headwinds, the closures underline the importance of supporting local businesses and fostering an environment where entrepreneurs and brands can thrive.