South Africa: Township retail and millennial consumers' fast-food buying patterns in industry 4.0 and 5.0

Zawya

a day ago

A friend shared how his kids complained about visiting their Eastern Cape home during festive season, citing no fast-food delivery, poor internet access, and disliking supermarket trips, preferring convenient online services instead.
Fast-food restaurants and chain supermarkets are leveraging on emerging technologies to swiftly deal with growing customer demands for digital delivery services. Using new technologies has become a culinary trend that intensifies modern-day retail trends. Lately, artificial intelligence (AI) tools offer immense potential for enhanced value and efficiency to many fast-food lovers. This can be attributed to inspiration from North America and European markets, where fast-food retailers considerably shape what and how the world eats.
Therefore, it would be beneficial for township fast-food retailers in emerging markets to embrace industry 4.0 which focuses on integrating technology and digitalisation into business processes. All driven by latest shifts in manufacturing practices brought by industry 5.0 to optimise productivity with machine-based operations aimed at amplifying value. Such trends would greatly appeal to techno savvy fast-food patrons, including the millennial consumer cohort.
Known to be technologically well informed and equipped with electronic gadgets, they seem to be growing endless demand for quick and simple service offerings. Also, they do have candid purchase experiences with everlasting cravings, often nudging them to consume foods with unconventional ingredients for daily feasts.
The procreative AI tools that drive consumer consumption patterns, brought innovative means and ways of satisfying such customers' love for food. Many fast-food retailers across the globe explore AI infused tools to prepare food for quick serves to patrons. In general, global fast-food market was valued at around R1.59tn by the end of 2024 and estimated to grow at a compound annual growth rate of CAGR 4.5%, to reach almost R 21tn by the year 2033 (Business Research Insights, 2025).
In South Africa, several technologies in the fast-food market are applied using AI tools such as gamification, display kiosks, cashless digital graphics and chatbots to name a few. These tools could also be useful for fast-food retail operators based in townships if they are to embrace AI's worth for their businesses. The gradual use of AI in various business sectors in the country, including education, manufacturing and retail environment, signifies the essence of digitising productivity and supply for business survival.
Insight Survey (2024) reports that during 2023 financial year, South Africa's fast-food industry showed significant growth, exhibiting an increase of 8.7% compared to previous years. This growth is anticipated to continue with projected CAGR of 8.0%, from 2024 to 2028. Given that Indurty 5.0 tools emerged to be beneficial for many businesses, it is still surprising that many businesses, particularly in township markets are resistant to change traditional customer service means and embrace new technologies which could positively impacts their profitability to a foreseeable future.
The issue here is that: Are township fast-food retail operators ready to competently serve millennial consumer's needs based on projections of their ever-changing demands? Also, are they able to effectively apply Industry 4.0 and 5.0 using AI infused tools? Currently, only a few appreciate the potential of AI tools to intensify efficiency and increase profits.
Key factors that influence changes in South Africa's fast-food retail industry
- Global economic shifts: Continuous revisions aimed at meeting evolving consumer demands in a dynamic global economy.
- Physical environment and health awareness: Millennial consumers' increasing health awareness and preference of nutritious meals apart from responsible practices they expect in the environment.
- Convenience: Greater demand for rapid service, delivery options, and mobile ordering at affordable prices are critical in distinguishing consumer purchase intentions. Thus, shifts towards modern urban dining outlets are imperative.
- Brand identity and appearance: Aesthetic appeal and packaging stimulate purchasing intentions and rapidly changing consumer lifestyles and consumption patterns seen in the market.
- Rapid digitalisation: Technological integration for deliveries, cashless payment methods, loyalty cards, and omnipresence of fuel price changes are also noteworthy.
- Changing consumer lifestyles: Lately, consumers follow flexible consumption times and look for adaptable dining options and settle towards diverse menus that offer diversity.
The above-mentioned factors should be considered as many South Africans habitually shop online and enjoy Serve Direct-To-Consumer experiences with e-commerce platforms. Millennials from townships, are gradually moving away from conventional buying patterns, and this forces their fast-food retail operators to adapt and embrace AI to optimise operations leveraging latest technological trends.
Sarah Jarvis from Forbes reiterates that embracing AI infused business operations while serving customers from a personalised level, would be a prudent approach to venture into. Enhancing personalised user experiences employing data analytics as an example, would assist businesses to keep track of customer buying patterns. Again, township fast-food retailers could start hiring remote AI masterminds to execute and oversee digital innovations in their outlets. Also, understanding different types of data to use when assessing customer consumption patterns to effectively develop AI-driven solutions is important.
Ultimately, embracing Industry 4.0 and 5.0 with AI-driven data analysis tools can increase township based fast-food retail operators' efficiency and profitability serving customer preferences applying AI tools to techno savvy consumers.