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POWER CRISIS

KFC closes some South African outlets owing to persistent rolling blackouts

KFC closes some South African outlets owing to persistent rolling blackouts
Complete darkness on Vilakazi Street in Soweto during Stage 6 rolling blackouts in September 2022. (Photo: Felix Dlangamandla)

KFC is temporarily closing some of its fried-chicken outlets in South Africa due to power cuts imposed by Eskom.

The Yum! Brands chain made the decision after the number of blackout days passed 200 this year – a record. Eskom supplies more than 90% of South Africa’s electricity and has implemented nationwide power cuts to prevent the grid from total collapse.

The government has awarded bailouts to the highly indebted utility and has said it will take over as much as two-thirds of its nearly R400-billion debt.

KFC, which has about 750 restaurants in South Africa, is not the first major company to say power cuts are a hindrance to productivity in the country.

Read in Daily Maverick: “After the Bell: The problem with Eskom is that it’s not just Eskom

MTN and Vodacom, the two biggest mobile phone companies, have also cited blackouts as a disruptor of business operations and a source of additional costs, due to the need for back-up equipment such as batteries and generators.

Yum!, based in Louisville, Kentucky, owns and franchises more than 25,000 KFC outlets worldwide. The company’s other brands include Pizza Hut and Taco Bell. DM/Bloomberg

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