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Debonairs Pizza SWOT and PESTLE Analysis

ID : 521429653| Feb 2023| 19 pages

COMPANY PROFILE -Debonairs Pizza

Business Sector :Quick Service Restaurant (QSR)

Operating Geography :South Africa, Africa, Global

About Debonairs Pizza :

Debonairs Pizza is a South African brand of pizza restaurant chains which was founded in 1991 by Craig Mackenzie and Andrew Harvey. Mackenzie was the one who came up with the concept of the fast food chain while on a trip to Los Angeles where he was studying. The first outlet was opened in Pietermaritzburg which was followed by Umhlanga and later Durban, after which there was a rapid expansion and it was acquired by Famous Brands in 1999. The brand now owns up to 700 restaurants in 14 countries mostly in Africa, including countries like Botswana, Dubai, Eswatini, Kenya, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Nigeria, South Africa, Ethiopia, Sudan, Zamibia and Angola. As of 2022, it is the largest pizza chain in Africa. Its headquarters are in Midrand, South Africa and has a revenue of 253 million rands. In 2022, Debonairs Pizza was awarded the Platinum in the Pizza Take Away Category by the City Press Reader’s Choice Awards, for the second time in a row.

Debonairs is all about providing “real taste, real value, real filling” especially with regards its double topping pizzas. But it is not just about the pizza. The true USP of the company lies in its free delivery idea by a smartly dressed person in a suit and tie, which is the iconic image of the company.

Debonairs Pizza Revenue :


Famous Brands Revenue (parent company):
R6.5 billion – FY ending 28 February 2022
R4.7 billion - FY ending 28 February 2021

Competitive Analysis of Debonairs Pizza

SWOT
PESTLE
The SWOT analysis for Debonairs Pizza is presented below in a matrix format followed by a detailed analysis:
StrengthsWeaknesses
1. Established in the South African market with over 500 restaurants
2. Integrated Supply Chain of Famous Brands provides competitive advantage to partners
3. Debonairs Pizza enjoys a positive brand reputation and goodwill
1. Unreliable electricity supply impacting supply chain and restaurant trade
OpportunitiesThreats
1. Disruptive food technology inventions in QSR
2. QSR industry to rise by a CAGR of 8.6% between 2022 and 2026
3. Food as medicine, i.e., delivering healthy food
4. Rising demand of plant-based Alternatives
5. Tapping new markets for geographical expansion
1. Cutting competition in the QSR industry
2. Information security breach through cyber and/or internal attacks
3. Supply chain shortages and stock replenishment delays in the UK due to a shortage of lorry drivers
4. High commodity prices due to food inflation
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Detailed SWOT Analysis of Debonairs Pizza

Strength

1. Established in the South African market with over 500 restaurants: The company has over 500 restaurants in 14 countries mostly located in Africa including Botswana, Dubai, Eswatini, Kenya, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Nigeria, South Africa, Ethiopia, Sudan, Zambia and Angola. The majority of its 546 restaurants were located in South Africa, with 462 restaurants in the country. Debonairs Pizza is one of the largest pizza chain restaurants in South Africa.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

1. Disruptive food technology inventions in QSR: Globally, food services business is being impacted by a number of food technology innovations. Robotic chefs and servers, self-service kiosks, and personnel scheduling software, which enables managers to spend less time on scheduling, are some of these developments. Debonairs Pizza has expanded its in-store technological interfaces. These consist of self-ordering terminals, electronic menu boards, and electronic payment methods. It acknowledges that technology will be used across the whole customer experience in restaurants of the future. To enhance the client experience, more technologies will be investigated.

The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • Domino’s Pizza
  • Pizza Hut
  • La Pino’s Pizza
  • Roman’s Pizza
  • Panarottis Pizza Pasta
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References used in Debonairs Pizza SWOT & PESTLE Analysis Report

1. Annual Report - https://famousbrands.co.za/iar2022/pdf/Famous_Brands_IAR_2022.pdf
2. Famous Brands declares dividend as headline earnings rise by 568% y/y - https://www.engineeringnews.co.za/article/famous-brands-declares-dividend-as-headline-earnings-rise-by-568-yy-2022-05-31
3. South African Fast Food/QSR (Quick Service Restaurants) Industry Landscape Report 2022: In 2021, the Industry Demonstrated Resilience Following the Effects of COVID-19 - Forecasts to 2026 - https://www.globenewswire.com/en/news-release/2022/10/12/2532735/28124/en/South-African-Fast-Food-QSR-Quick-Service-Restaurants-Industry-Landscape-Report-2022-In-2021-the-Industry-Demonstrated-Resilience-Following-the-Effects-of-COVID-19-Forecasts-to-202.html#:~:text=In%202021%2C%20the%20South%20African,27.5%25%20between%202020%20and%202021.
4. Famous Brands eyeing entry into Ghana - https://www.sowetanlive.co.za/news/south-africa/2022-06-01-famous-brands-eyeing-entry-into-ghana/
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