Restaurant income falls in April; economists point to weakening consumer spending

Restaurant and fast‑food income fell in April 2026, according to data released by Statistics South Africa. The decline is part of a wider weakening in consumer spending that analysts say is affecting food and beverage outlets.

Key figures from Stats SA

Stats SA reported that income for the food and beverage industry decreased by 2.1%. Within that sector, restaurant sales dropped 3% in April compared with March. Over a longer period, the three months ended April declined by 1.4% compared with the previous three months.

The report named restaurants and coffee shops as the worst impacted, with income in that segment decreasing by 2.2%. Restaurants generated R10.3 billion between November 2025 and January 2026, but only R10 billion in the three months ended April.

Consumer spending patterns and wider economic signals

Stats SA data for the first quarter of 2026 showed consumers prioritised housing, transport and education, with spending in those categories recording positive growth. Conversely, spending growth declined for food, alcohol and restaurants.

Other indicators presented alongside the spending data suggest pressure on household incomes. Data from Codera Analytics cited in the report showed the median wage in South Africa increased by 0.2% between 2011 and 2022, while inflation rose by 5.13% year‑on‑year over the same period.

Where this leaves the economy

Despite the drop in restaurant income, the country has not met the technical definition of a recession: GDP grew by 0.4% in the fourth quarter of 2025 and by 0.5% in the first quarter of 2026. Earlier in June, Fitch upgraded South Africa’s investment grade for the first time in 21 years, though the country was reported to remain at junk status.

What the data suggests

The April fall in restaurant and fast‑food income is presented in the Stats SA release as part of a broader shift in consumer behaviour: households are allocating more spending to essentials such as housing, transport and education, while reducing outlays on restaurants and other discretionary items. The report links these patterns to stagnant wages and higher inflation over recent years.