SA Foodservices vs. Insurers

The Western Cape High Court ruled in favour of Café Chameleon (a restaurant in Cape Town) against Guardrisk Insurance (Momentum). The restaurant was seeking insurance payments for losses suffered due to the Covid-19 pandemic. We estimate the foodservice sector’s lost food and beverage revenues owing to the national lockdown. Furthermore, we assess the impact that struggling franchisees may have on FBR and SUR’s short-term strategy.