Wimpy owner Famous Brands upbeat ahead of festive season, even as food inflation bites

Famous Brands - the owner of Wimpy, Steers and Debonairs - has restored its interim dividend after a three-year hiatus, forking out R130 million to shareholders amid confidence that consumer trends are still mostly in its favour, despite a worsening economic picture.

Surging inflation, notably for food and energy, is having its effect in the form of menu price hikes that are above the historical average, but CEO Darren Hele told News24 that while there were clear signs of stress for its customers, South Africans are still prioritising their social life and are willing to indulge. Consumers, in a tough environment, were "less adventurous" and seemed to be more interested in spending with trusted brand names, he said.

Given surging inflation, Famous Brands is focusing on menus that offer both value and good quality, he said, and those in the industry who lowered standards had paid the price. But the post-Covid-19 consumer did seem more accepting of more limited menus as well.