Report: Major upheaval for fast-food establishments such as KFC and Nando's

As a result of load shedding, several of South Africa’s favourite fast-food franchises are battling with supply and being forced to close.

KFC announced in December of last year that load shedding had disrupted the availability of several important menu items. Nando’s has also suffered as a result of the company’s struggles.

According to Mike Cathie, CEO of Nando’s South Africa, the growing outages are causing a supply shortage on chicken, jeopardising the company’s fresh food supply.

While none of its restaurants have closed owing to chicken shortages, he said it is difficult to manage supplies throughout its national footprint due to virtually continual load-shedding.

“As long as load-shedding remains, so do the significant threat to the fresh food supply. We can expect to have a continued tough year ahead, but we are confident we have adequate plans and contingencies in place,” said the CEO to the Sunday Times.

According to Astral Foods, the country’s largest chicken producer, which feeds restaurants such as KFC, Nando’s, and Spur, power outages are making it increasingly difficult to do business.

According to the company’s most recent ESG Summary Report for the fiscal year ended 30 September 2022, the power outages resulted in a direct loss of R126 million.

According to the City Press, several farming business groups have petitioned the government to protest load shedding, which they believe is limiting food security across the country.

On January 13, stakeholders from the agricultural sector met with Agriculture Minister Thoko Didiza. Irrigation systems, livestock management, and temperature regulation in chicken coops, according to the members, are all hampered by constant load shedding.

“We stood as a sector and made the minister aware of the seriousness of the electricity problem,” said Christo van der Rheede, CEO of Agri SA, to the City Press. For example, chicken growers voiced concern that they would not be able to butcher enough, resulting in shortages.”

Eskom, South Africa’s faltering national power provider, has lately increased load shedding to stage 6, with more frequent and longer rolling blackouts.

According to Presidential Spokesperson Vincent Magwenya, President Cyril Ramaphosa has expressed remorse for South Africa’s current energy situation, which has resulted in stage 6 load shedding.

According to the spokesman, Ramaphosa recognises the progress made in implementing components of the National Energy Plan, but urges greater urgency and speed in executing all priority areas identified in the plan.

The following is a tweet sent by KFC South Africa in late December: