Stats SA recently released data on the food and beverage sector for July 2022, showing a 55.8% increase in total year-on-year income generated by the F&B industry compared with July 2021. The main contributor for the growth was restaurants and coffee shops at 82.6%.

In terms of the past three months to July, income increased by 26.0% compared with the same period last year. Restaurants and coffee shops were also the main contributors to this increase at 31.9%, followed by take-away and fast-food outlets at 16.8%.

Ultimately, the growth in the F&B industry is a positive reflection of the tourism industry. According to National Chairperson of FEDHASA, Rosemary Anderson, the F&B, tourism and hospitality industries are one and the same and are completely dependent on each other.

Anderson notes that the growth can be attributed to the removal of restrictive conditions seen on the industry at the same time last year, and the fact that there is no longer as much fear of travelling both internationally and locally.

She also pointed out that the ‘revenge travel’ trend had also contributed to the increased income, with travellers spending more, travelling longer distances, and staying for longer periods.

When asked about the outlook for the industry, Anderson said, “We as FEDHASA definitely foresee future growth. When looking at the tourism growth experienced in the rest of the world, including the majority of our African sister countries – South Africa’s growth is lagging behind in the growth. We anticipate we will be catching up during the upcoming peak summer season. It is very difficult to beat a good South African summer!”

Despite this positive outlook, she notes that there are still some obstacles that could inhibit the growth. These include the long-term impact of the prohibitively restrictive rules during the COVID pandemic, which made trading conditions and financial viability impossible. 

Service delivery issues, such as load shedding and inconsistent water supply, also play a role in inhibiting the industry, with businesses having to spend more to keep running.

An increase in tourism is seen as a solution to combat some of these obstacles, with Anderson saying: “The Department of Tourism has plans to market South Africa as it has never been marketed before to attract many more international tourists to our shores. This will hopefully aid and, ultimately, result in industry recovery, as well as job creation, which will benefit the economy.”