Franchise Association says industry is set for massive job losses in face of pandemic

DURBAN – The Franchise Association of South Africa (Fasa) has warned the industry was set for massive job losses as it struggled with the coronavirus (Covid-19) outbreak that has led to many franchises closing doors as a result of the intermittent lockdowns imposed by the government since March.

The group said the industry could see 75 000 jobs lost as trading had ground to halt in the sector

Fasa executive director Vera Valasis said the government needed to review the lockdown regulations to treat the take-out and fast food industry to be included under essential services. Valasis said the contactless delivery of take-out and fast food meals was ideal for the phased opening of the industry.

“While one understands that the government decided to take very strict measures to clamp down on the spread of the virus, we believe not having an alternative people are being driven out of their homes to buy food, so there may be an even greater risk in not allowing contactless food delivery to continue offering cooked food to consumers,” Valasis said.

The franchise industry generates R734 billion to the economy, according to the Sanlam Franchise Survey conducted in 2019 and employs close to 500000 people in its 48000 franchised outlets and 824 franchise companies and contributes just under 14percent to the country’s gross domestic product.