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Steers SWOT and PESTLE Analysis

ID : 521429053| Mar 2023| 19 pages

COMPANY PROFILE -Steers

Business Sector :Quick Service Restaurant (QSR)

Operating Geography :South Africa, Africa, Global

About Steers :

Fast-food restaurant chain Steers is well-known in South Africa and is a name owned by global conglomerate Famous Brands. Although it is well known for its burgers and chips, it also offers a wide variety of other foods including chicken burgers, ribs, milkshakes, salads, ice creams, etc. George Halamandress, popularly known as Uncle George, founded Steers in the 1960s after getting the idea while visiting the United States. He was enthralled by their notion and wished to introduce it to South Africa. Steers has more than 600 outlets as of the beginning of 2023, with company headquarters in Midrand, South Africa. Steers has been able to win the Johannesburg magazine Leisure Options' awards for the "Best Hamburger" in the quick service restaurant sector for 20 years running as well as the "Best Chips" for 13 years. They have franchises outside of South Africa in places including Angola, Eswatini, Botswana, Kenya, Malawi, Oman, Ivory Coast, Mauritius, Sudan, UAE, Tanzania, and Nigeria.

Steers vision and mission is to create the “perfect burger by mastering the art of consistency and staying true to their distinctive flame-grilled taste, their unique seasoning on their hand cut chips.”

Steers Revenue :


R 6.5 billion – FY ending 31st March 2022
R 4.684 billion – FY ending 31st March 2021

Competitive Analysis of Steers

SWOT
PESTLE
The SWOT analysis for Steers is presented below in a matrix format followed by a detailed analysis:
StrengthsWeaknesses
1. Strong support of Famous Brand’s integrated supply chain
2. Strongly established brand image.
3. A large number of stores with high market penetration.
4. A wide variety of product offerings.
5. Strong marketing strategies with an appealing platform.
1. Limited geographical reach with its presence mainly in South Africa.
OpportunitiesThreats
1. Famous Brands Limited acquisition of Steers Properties Proprietary Limited.
2. Increasing trends towards veganism could be the one-way option to increase their menu with healthier and veg products.
3. Tapping new markets for geographical expansion
1. Global pandemic along with supply chain constraints threatening the overall South African market.
2. QSR industry is highly competitive
3. High commodity prices due to food inflation
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Detailed SWOT Analysis of Steers

Strength

1. Strong support of Famous Brand’s integrated supply chain: The Manufacturing, Logistics, and Retail activities that support Brands pillar in SA and a few other African nations make up its integrated Supply Chain. The main goal of its supply chain is to give franchise partners a competitive edge through effective supply, product innovation, and margin management. These companies have independent management and evaluation systems. Although it has a few partially owned subsidiaries, the majority of its production facilities are fully owned. The retail sector offers frozen meat items, coffee (ground and beans), frozen chips, condiments (sauces, dressings, spices), and other high-value goods.

2. A wide variety of product offerings: Burgers and chips are among Steers' most popular menu items. Other menu options include, among other things, chicken burgers, ribs, ice cream, and milkshakes. It uses high-quality ingredients and serves fresh cuisine that complies with all legal criteria and benchmarks for best practises across the world. TruFruit and No Sugar soft drinks have been added to the menu in an effort to assist customers in making healthier eating decisions. People's dietary requirements vary; thus, Steers has developed a menu with a selection of meals to accommodate their dietary demands, food allergies, intolerances, or lifestyle preferences. Steers' Veggie Burger is made for vegetarians using a 100% plant-based patty from Fry's®. It has introduced the Better for You badge to emphasise menu items with reduced kilojoules, such as its veggie burgers, salads, and chicken burgers, for its more health-conscious burger fans.

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

Weakness

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Opportunity

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Threat

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

Major Competitors :

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References used in Steers SWOT & PESTLE Analysis Report

1. Our Brands - https://www.simbisabrands.com/our-brands/steers/
2. Famous Brands Limited entered into an agreement to acquire Steers Properties Proprietary Limited - https://www.marketscreener.com/quote/stock/FAMOUS-BRANDS-LIMITED-6492937/news/Famous-Brands-Limited-entered-into-an-agreement-to-acquire-Steers-Properties-Proprietary-Limited-And-42090695/
3. Why the Global Rise in Vegan and Plant-Based Eating is No Fad (30x Increase in US Vegans + Other Astounding Vegan Stats) - https://foodrevolution.org/blog/vegan-statistics-global/
4. Steers and Debonairs owner is betting big on a new plant-based restaurant chain in South Africa - https://businesstech.co.za/news/business/572604/steers-and-debonairs-owner-is-betting-big-on-a-new-plant-based-restaurant-chain-in-south-africa/
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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In-text: (SWOT & PESTLE.com, 2024)

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Steers SWOT and PESTLE analysis has been conducted and reviewed by Vaishnavi Singh and reviewed by senior analysts from Barakaat Consulting.

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