Durban – Celebrated chef, restaurateur, and culinary school owner Kayla-Ann Osborn highlights that the obstacles confronting South Africa’s restaurant industry are not merely theoretical economic issues.
With two restaurants located on KwaZulu-Natal’s South Coast and a culinary school, she has felt the effects of rising costs, extended periods of low sales, and cautious consumer spending over the past seven months.
As headline inflation hits its peak in nearly two years, South Africans continue to bear the burden of rising prices.
On 22 July 2026, Statistics SA reported an annual inflation spike from 4.5% in May 2026 to 5.0% in June – the highest level since June 2024.
“In the restaurant industry, breakeven points do not significantly decrease during off-peak times,” Osborn observes.
“The link between revenue and costs isn’t as balanced as in other sectors; when sales drop, the pressure is undeniable.”
While the inflation rate for food and non-alcoholic beverages slightly decreased from 1.6% in May to 1.9% in June, rises in transport, fuel, electricity, housing, and service charges continue to constrain disposable income.
Simultaneously, the costs associated with catering and restaurant services have surged to 5.7% year-on-year.
This situation compels restaurants to find a balance between serving more budget-conscious customers and managing increasing input and service costs.
For Osborn, succeeding in this climate requires more than quick fixes; it necessitates practical, disciplined choices throughout the business, including strategic trading, menu pricing adjustments, waste reduction, in-house production, strict budgeting, and collaboration with local suppliers, alongside staff training and improving guest experiences.
Strategic Trading and Menu Pricing
Osborn recommends that restaurants begin by adopting a more strategic stance regarding their operating hours, menu selections, and the revenue contribution of each dish.
Although extending operating hours may seem beneficial for sales, if quieter days lead to higher overhead costs than revenue, operators may need to rethink their strategies.
“It can be more profitable to pursue a 15% increase in covers on a Friday night than to run at 80% occupancy with a poorly priced special on a Tuesday,” Osborn elaborated.
For some establishments, resilience may depend on streamlined menus featuring better-costed items.
Farm-to-table dining goes beyond ingredient sourcing, according to Osborn.
By focusing on seasonal local produce and utilizing entire components—often labeled as “nose-to-tail” or “root-to-vegetable” cooking—restaurants can create more sustainable, unique, and cost-effective menus.
Waste Minimization and In-house Production
For Osborn, this mindset extends to what restaurants can produce internally.
Crafting items in-house and using homegrown ingredients, from handmade pasta to mushrooms cultivated in her garden, can reduce the need for purchased products, decrease costs, and offer a unique touch to the restaurant’s menu.
Rather than compromising on quality, she believes establishments can enhance their offerings by managing specific ingredients and aspects that set their cuisine apart.
Budget Management and Preference for Local Suppliers
Beyond kitchen operations, Osborn insists that owners evaluate their growth potential.
In a tough market, budgeting becomes essential for survival and no longer just an administrative formality.
Osborn advises restaurateurs to allocate funds for future growth and investment, encouraging a medium- to long-term perspective in their decision-making.
With the significant costs associated with imported goods and ingredients, Osborn champions local skills development and job creation.
She believes that South Africa is well-positioned to foster more artisanal skills, such as cheese making and specialty bread baking.
Training and Enhancing Guest Experiences
Osborn’s practical culinary school plays a crucial role in the overall strategy.
Training within her restaurants immerses students in the rhythm, standards, and demands of the industry while equipping them with real culinary skills for future employment or entrepreneurship.
Ultimately, the guest experience is of utmost importance.
As customers dine out less frequently, every interaction must justify their expenditure.
“Well-trained, well-presented staff exude confidence and can elevate the experience,” Osborn states.
“This builds customer trust, fostering open dialogue about recommendations, upselling opportunities, and feedback.”
Osborn’s message to restaurateurs is clear: “Vasbyt” — but do it with intention.
In a demanding economy, the restaurants that succeed will be those that operate wisely, minimize waste, enhance training, support local producers, and offer the kind of value that encourages patrons to return.
By viewing her business through this lens, Osborn believes the restaurant industry can turn a challenging period into an opportunity for growth.
