Big problem for South Africans who order takeaways

The rise of digital technology has made food delivery far easier, with ordering as easy as tapping a phone.

With several apps and countless franchises, spending is effortless and harder to track. Takeaways are also extremely convenient for urban households juggling 9-5 jobs and traffic.

However, Standard Bank’s indicators show that the spending on takeout each month would be enough to build a sizeable emergency fund.  

This is important as its data showed that many of its customers, even those earning a stable income, don’t have immediately accessible cash savings for emergencies. 

Over 45% of Standard Bank clients have no accessible emergency savings. Among Private Banking clients earning between R25,000 and R58,000 a month, more than a third have no emergency savings.

This is concerning, especially in an uncertain economic environment where even a small buffer can make a big difference. 

The bank’s data also showed that customers spend an average of R775 monthly on takeaways and food delivery, excluding groceries and supermarket meals. 

This is based on transactions at 14 major fast-food franchises. Many sampled customers are multi-banked, meaning that actual spend may be higher.

Customers in their late 20s and mid-30s lead this spending. The higher the income, the more they spend. 

Those earning roughly R60,000 spend over R1,000 monthly, which peaks at R1,300 during holidays.

“These are often family meals, and this group likely views it as a time-saving trade-off,” said Head of Money Management and Advisory, Doret Jooste.

Lower- to middle-income earners feel the pinch far more. Those earning under R20,000 spend about R472, and those earning R25,000 spend R615 monthly. 

The average spend rises to R748 for those earning under R60,000, which accounts for about 2.5% of disposable income.

These groups tend to have higher debt, and frequent low-value purchases can strain mid-month cash flow. “It feels harmless at the time, but the frequency can add up,” Jooste warned.

Not the only place to cut

Convenience spending is often unplanned and sometimes unconscious. It can hurt disposable income without a clear budget or reduced grocery spending. 

Jooste said households should review monthly spending, identify impulse triggers and set a cap. 

“Capping this spend, whether as a set amount or a percentage of income, can free up money for savings,” said Jooste.

“For example, cutting takeout spending from R615 to R400 could free up R2,500 annually. Invested tax-free at 10% annually, this could grow to over R41,000 in 10 years. *

Subscription costs are another possible area to review. Low- and middle-income customers spend R336 and R482 monthly on subscriptions, while Privae clients spend R1,255. 

Halving takeout and subscription spending could free up R400 for low-income earners, R615 for emerging high-income earners and over R1,100 for banking clients, which is enough to start saving. 

“We know that growing one’s income isn’t always easy because there are external factors we can’t control,” said Jooste.

She added that the goal isn’t to cut these convenience spending entirely, but to highlight small shifts like packing a lunch to work, which can ease cash flow and build stronger financial habits.

Issued on BusinessTech by Luke Fraser | https://businesstech.co.za/news/finance/833521/big-problem-for-south-africans-who-order-takeaways/