UNIVERSITY OF SOUTH AFRICA (UNISA)
College of Agriculture and Environmental Sciences
⋄
ASSIGNMENT 2
Semester 1 – 2026
⋄
Module Code: HPM2601
Module Name: Foodservice Organisation and Management
Assignment No.: Assignment 2
Due Date: 2026
Semester: Semester 1, 2026
Submitted in partial fulfilment of the requirements for HPM2601
at the University of South Africa.
,UNISA | HPM2601 Foodservice Organisation and Management
Question 1: Foodservice Industry Growth, Systems, Space Design, and Sanitation
1.1 Five Factors Affecting Growth of the South African Foodservice Industry
The South African foodservice industry has grown considerably over recent years, shaped
by a combination of socioeconomic, demographic, and technological forces. Payne (2017)
places these forces within a broader framework that connects patronage growth to changes
in the society and economy from which customers come. Five of the most significant factors
are discussed below.
Urbanisation and Changing Lifestyles
The movement of people from rural to urban areas has fundamentally changed how South
Africans eat. Africa’s urbanisation rate reached approximately 45.5% in 2024 (World Bank,
2024), and South African cities have followed this trajectory closely. Urban residents lead
faster-paced lives, with less time available for home cooking. This creates consistent de-
mand for quick-service and takeaway options. The growth of cities such as Johannesburg,
Cape Town, and Tshwane has brought large concentrations of working adults who regularly
rely on commercial foodservice for at least one meal per day (Mordor Intelligence, 2025).
Growth of the Middle Class and Rising Disposable Income
As more South Africans move into middle-income brackets, a greater proportion of household
income is available for discretionary spending, including dining out. This shift in purchas-
ing power has fuelled growth across all foodservice channels, from budget quick-service
restaurants (QSRs) to full-service restaurants (FSRs) and coffee shops. The South African
foodservice profit sector generated revenue of ZAR 601.2 billion in 2024, reflecting a com-
pound annual growth rate of 3.4% between 2019 and 2024 (GlobalData, 2024). This sustained
growth is directly linked to rising middle-class participation in out-of-home eating.
Changing Demographics and Women’s Participation in the Workforce
A rising proportion of women in paid employment has historically reduced time available for
domestic food preparation (Payne, 2017). Dual-income households have less flexibility to
cook daily, making convenient foodservice alternatives far more appealing. The demographic
Page 1 of 23
, UNISA | HPM2601 Foodservice Organisation and Management
shift towards a younger population is equally relevant: younger consumers aged 25 to 45
form the primary market driving growth in South Africa’s restaurant industry (Restroworks,
2026). This cohort prioritises experience-based dining and digital ordering, which in turn
stimulates both traditional and technology-enabled foodservice formats.
Technology Adoption and Digital Food Delivery
The growth of smartphone penetration and food delivery applications has opened the food-
service market to consumers who may not physically visit a restaurant. In South Africa, Mr D
Food controls approximately 30% of the food delivery market while Uber Eats holds around
25%, together enabling QSRs and restaurants to reach a far wider customer base (Research
and Markets, 2024). Mobile payments are increasingly preferred over card transactions, and
approximately 27% of South African consumers use food delivery apps several times per
week (Restroworks, 2026). This digital infrastructure has removed a significant barrier to
patronage, especially for consumers in densely populated suburbs and townships.
Tourism and Hospitality Growth
The expansion of South Africa’s tourism sector has created sustained demand for diverse
dining experiences. Approximately 30.8 million travellers visited South Africa in 2024, with
domestic and international tourism together stimulating demand across QSR, casual dining,
and fine dining segments (Mordor Intelligence, 2025). Premium establishments have also
gained international recognition: La Colombe in Cape Town ranked 49th on the World’s 50
Best Restaurants list (Mordor Intelligence, 2025). The tourism economy provides foodservice
operators with a consistent, well-spending customer base beyond the local population.
Implementation Insight
South Africa’s foodservice market is projected to reach USD 17.22 billion by 2029,
growing at a CAGR of 14.09% from 2024 (Research and Markets, 2024). For operators,
understanding which of these five growth drivers is most relevant to their target market
will determine whether investments in technology, location, or menu development will
yield the greatest returns.
Page 2 of 23
College of Agriculture and Environmental Sciences
⋄
ASSIGNMENT 2
Semester 1 – 2026
⋄
Module Code: HPM2601
Module Name: Foodservice Organisation and Management
Assignment No.: Assignment 2
Due Date: 2026
Semester: Semester 1, 2026
Submitted in partial fulfilment of the requirements for HPM2601
at the University of South Africa.
,UNISA | HPM2601 Foodservice Organisation and Management
Question 1: Foodservice Industry Growth, Systems, Space Design, and Sanitation
1.1 Five Factors Affecting Growth of the South African Foodservice Industry
The South African foodservice industry has grown considerably over recent years, shaped
by a combination of socioeconomic, demographic, and technological forces. Payne (2017)
places these forces within a broader framework that connects patronage growth to changes
in the society and economy from which customers come. Five of the most significant factors
are discussed below.
Urbanisation and Changing Lifestyles
The movement of people from rural to urban areas has fundamentally changed how South
Africans eat. Africa’s urbanisation rate reached approximately 45.5% in 2024 (World Bank,
2024), and South African cities have followed this trajectory closely. Urban residents lead
faster-paced lives, with less time available for home cooking. This creates consistent de-
mand for quick-service and takeaway options. The growth of cities such as Johannesburg,
Cape Town, and Tshwane has brought large concentrations of working adults who regularly
rely on commercial foodservice for at least one meal per day (Mordor Intelligence, 2025).
Growth of the Middle Class and Rising Disposable Income
As more South Africans move into middle-income brackets, a greater proportion of household
income is available for discretionary spending, including dining out. This shift in purchas-
ing power has fuelled growth across all foodservice channels, from budget quick-service
restaurants (QSRs) to full-service restaurants (FSRs) and coffee shops. The South African
foodservice profit sector generated revenue of ZAR 601.2 billion in 2024, reflecting a com-
pound annual growth rate of 3.4% between 2019 and 2024 (GlobalData, 2024). This sustained
growth is directly linked to rising middle-class participation in out-of-home eating.
Changing Demographics and Women’s Participation in the Workforce
A rising proportion of women in paid employment has historically reduced time available for
domestic food preparation (Payne, 2017). Dual-income households have less flexibility to
cook daily, making convenient foodservice alternatives far more appealing. The demographic
Page 1 of 23
, UNISA | HPM2601 Foodservice Organisation and Management
shift towards a younger population is equally relevant: younger consumers aged 25 to 45
form the primary market driving growth in South Africa’s restaurant industry (Restroworks,
2026). This cohort prioritises experience-based dining and digital ordering, which in turn
stimulates both traditional and technology-enabled foodservice formats.
Technology Adoption and Digital Food Delivery
The growth of smartphone penetration and food delivery applications has opened the food-
service market to consumers who may not physically visit a restaurant. In South Africa, Mr D
Food controls approximately 30% of the food delivery market while Uber Eats holds around
25%, together enabling QSRs and restaurants to reach a far wider customer base (Research
and Markets, 2024). Mobile payments are increasingly preferred over card transactions, and
approximately 27% of South African consumers use food delivery apps several times per
week (Restroworks, 2026). This digital infrastructure has removed a significant barrier to
patronage, especially for consumers in densely populated suburbs and townships.
Tourism and Hospitality Growth
The expansion of South Africa’s tourism sector has created sustained demand for diverse
dining experiences. Approximately 30.8 million travellers visited South Africa in 2024, with
domestic and international tourism together stimulating demand across QSR, casual dining,
and fine dining segments (Mordor Intelligence, 2025). Premium establishments have also
gained international recognition: La Colombe in Cape Town ranked 49th on the World’s 50
Best Restaurants list (Mordor Intelligence, 2025). The tourism economy provides foodservice
operators with a consistent, well-spending customer base beyond the local population.
Implementation Insight
South Africa’s foodservice market is projected to reach USD 17.22 billion by 2029,
growing at a CAGR of 14.09% from 2024 (Research and Markets, 2024). For operators,
understanding which of these five growth drivers is most relevant to their target market
will determine whether investments in technology, location, or menu development will
yield the greatest returns.
Page 2 of 23
