Luv dat chicken! Nairobians fuel global race for fast-food billions

Zimbabwe's Simbisa Brands operates Chicken Inn restaurants in Kenya. [Elvis Ogina, Standard]

The company, which operates Britain's largest halal fast-food chain, said it will open the outlets in a partnership deal with Express Kitchen, a subsidiary of AAH Ltd.

Sandwich chain Subway, ice cream seller Cold Stone Creamery, Japanese firm Toridoll and Domino's Pizza recently opened more stores in Kenya.

These global players are turning to fast-growing markets such as Kenya for growth, attracted by rising disposable household incomes, fast economic growth, and a young population, according to a study by McKinsey & Co.

Nairobi's position as a hub for multiple multinationals also acts as a magnet for global restaurant chains.

Last week, Simbisa Brands - which operates quick-service restaurants including Chicken Inn, Pizza Inn, Bakers Inn, and Creamy Inn - said it targets to open additional restaurants by the end of this year amid increased competition from big players in the fast-food industry.

The company already operates 206 outlets in Kenya on a franchise model. They include 49 Chicken Inn, 59 Pizza Inn, 40 Creamy Inn, 23 Galitos, five Bakers Inn and 30 others.

"It's a substantial investment pipeline with 48 net new counters set to open in the second half of the financial year 2023, and a further 103 sites identified for the financial year 2024 will drive growth and unlock shareholder value," said the Victoria Falls Stock Exchange-listed food giant.

"The primary growth markets in the short to medium term will be Kenya and Zimbabwe," it said.

Burger King fast food eatery in Lavington, Nairobi. [Elvis Ogina, Standard]

Rapid industrialisation coupled with work habits has changed Kenyan consumers' preference for fast foods.

The Covid-19 pandemic, however, severely impacted the food and restaurant industry.

Decreased consumer spending and disruptions in the supply chain affected the industry to a large extent.

In addition, the increased awareness about the consumption of healthy foods affected the market growth during the pandemic.

However, the market is expected to regain demand post-pandemic owing to a rise in the number of fast-food franchises and increasing demand for online food deliveries.