eBusiness Weekly
HARARE – Fast foods group, Simbisa Brands said on Wednesday it is now charging its services at “discounted prices” in hard currency to mobilise foreign currency to keep its operations afloat as well as pay international franchise fees.
The group manages international franchises’ including Nandos, Ocean Basket, Steers and Rocomamas as well as others such as the popular Chicken Inn and Pizza Inn.
The decision to charge in foreign currency, the firm said, was necessitated after failure by its bankers to mobilise hard currency at the official 1:1 rate of the United States dollar to the local Bond Note.
The foreign currency will not only pay for the franchise fees but for import duties for its food stuffs for restaurants like Ocean Basket which serve menu composed largely of imported sea food.
“For us to remain in business and continue to serve you your favourite meals, we have resolved to discount our prices to below cost where payable in USD so that we start generating the foreign currency we desperately need,” the company said.
The move is however a cover to keep its operations within the law as the “discounted prices” are similar to the greenback that are being charged on the parallel market.
While the government insists the rate is 1:1 on the official market, it is around USD1:$3.50 on the streets.
The alternative market has become the defacto official rate with most businesses now charging their goods and services using it as a benchmark.
Simbisa Brands subsidiary Chicken Inn, according to its new price structure, is for example charging its “one piecer” of chicken and chips for $3.50 or alternatively “discounted” at USD1 while beef burger is going for $5.25 or USD$1.50.
The firm said ability to mobilise foreign currency would allow its 4 000 employees to remain at work, continuing to serve an estimated 4.5 million customers every month.
The company said it would continue to accept all modes of payment using the bond notes. – New Ziana
