Published in Government Gazette No. 55542 on 16 October 2026, the extension is scheduled to take effect on 26 October 2026.

FEDHASA is calling on affected restaurant owners and hospitality employers to participate in the legal application and contribute towards the associated legal costs.

“FEDHASA understands the importance of fair employment practices and the role of collective bargaining in the hospitality sector. Our concern is not with the agreement itself, but with ensuring that the process by which it is extended to non-parties meets the legal requirements that exist to protect all affected parties, including employers who were not part of the original negotiations. We believe these questions deserve proper consideration by the courts,” said Brett Tungay, FEDHASA National Chairperson.

Implications for restaurant operators

The agreement introduces a range of employment-related obligations for affected businesses, including:

• Prescribed minimum wages, ranging from the national minimum wage of R30.23 per hour to R57.23 per hour for certain categories, including chefs and managers.
• Employer contributions of 5% towards the Council’s Provident Fund, in addition to the employee contribution.
• Contributions towards a funeral scheme.
• A uniform cleaning allowance of R17.50 per week.
• A minimum annual bonus equivalent to two weeks’ salary.
• Council levies of R16 per employee per month, shared between employer and employee, and a R25 monthly levy per establishment payable by the employer.

The association recognises that the restaurant industry encompasses a wide range of businesses, from large groups and independent restaurants to family-owned establishments, small cafés and tourism-dependent operators. Regulatory requirements can have meaningfully different consequences for businesses with different resources, turnover and staffing structures, and this diversity warrants careful consideration. FEDHASA encourages members to seek appropriate advice regarding their individual circumstances.

Legal process and next steps

FEDHASA has previously engaged with a similar matter, with the Labour Court granting an interdict on 2 March 2021. The association is now coordinating a fresh urgent legal application in respect of the current extension.

The outcome will be determined by the Labour Court, and FEDHASA will pursue the matter through the appropriate legal channels. The association is committed to engaging constructively with all relevant stakeholders throughout this process.

“FEDHASA has a responsibility to its members and to the broader hospitality sector to ensure that questions of this nature receive proper legal consideration. We are not seeking confrontation – we are seeking clarity. Where legitimate concerns exist about whether legal requirements have been met, it is appropriate to ask the courts to make that determination,” said Tungay.

Industry participation

Given the short period before the extension is due to take effect, FEDHASA is asking affected restaurant owners and hospitality employers to consider joining the proposed interdict application.

FEDHASA is also asking members and affected businesses to consider contributing towards the legal costs of the application. Broad participation will be important in enabling the industry to pursue an effective legal challenge within the available timeframe. Details of the appointed attorneys, participation requirements and cost arrangements will be provided directly to interested businesses.

Businesses wishing to participate should complete FEDHASA’s online form by no later than 17:00 on Tuesday, 20 October 2026.

“We recognise that this is a significant ask at short notice, and we are grateful to the members and businesses who are willing to engage with this process. The hospitality industry has shown resilience and solidarity in the face of many challenges. We hope that spirit will carry through here as well,” said Tungay.

FEDHASA will continue to engage with relevant stakeholders and keep members informed of developments as the legal process proceeds.

The latest Statistics South Africa Food & Beverage Survey (May 2026) paints a concerning picture for one of South Africa’s largest employers.

While many may view a decline of only 0.3% in real income as relatively insignificant, those operating restaurants, pubs, coffee shops and food service businesses know that these figures tell a very different story. A story restaurateurs have felt for many months – but is only now being reflected in the stats.  In real terms (constant 2019 prices), food and beverage income declined by 0.3% in May 2026 compared with May 2025.  Looking at the latest three-month period, food and beverage income fell by 0.2%, with restaurants and coffee shops declining by 1.7%, making them the largest contributor to the industry’s decline.

Seasonally adjusted figures tell a similar story, with income decreasing by 0.6% over the latest three months, once again driven primarily by restaurants and coffee shops.

These are not simply statistics.

They represent thousands of business owners who are working longer hours, carrying greater financial risk and employing millions of South Africans while trying simply to survive.

Turnover is Flat – Costs are Not

The greatest challenge facing the hospitality industry is that turnover has remained largely stagnant while operating costs continue to increase at unprecedented levels.

Every significant expense faced by restaurants has increased substantially over recent years, from electricity tariffs to food – to every single input cost.

For many hospitality businesses, these cost increases have far exceeded consumer inflation.  In practical terms, restaurants today generally require annual revenue growth of between 10% and 15% simply to maintain the same profitability.  Any increase below this often means the business is actually going backwards financially.

This is why a real decline of 0.3% is far more significant than it first appears.

Government Must Understand the Reality

The hospitality industry fully supports legislation that protects employees and customers.

However, new legislation must also be practical, affordable and proportionate.

Unfortunately, government departments often introduce new compliance requirements without fully appreciating the cumulative financial impact on businesses that already operate on extremely small profit margins.  Although aimed at improving workplace health and safety, these regulations introduce additional obligations.  Each of these requirements carries a cost.

For larger organisations these costs may be manageable.

For independent restaurants, cafés, pubs and family-owned food businesses already operating on margins often below 5%, every additional compliance requirement places further pressure on their viability.

No individual regulation may appear excessive in isolation.  The problem is the cumulative effect.

When combined with escalating municipal charges, increasing utility costs, higher food prices, rising wages and ongoing economic uncertainty, another layer of compliance can easily become the difference between remaining open and closing permanently.

One of South Africa’s Greatest Job Creators

The irony is that restaurants are among South Africa’s greatest creators of employment.  Few industries employ more people per square metre of trading space than the hospitality sector.  Importantly, our industry creates employment opportunities for people from every educational background.

Restaurants provide first jobs for school leavers, opportunities for individuals with limited formal education, practical workplace training, career development and entrepreneurial opportunities.  In a country where unemployment remains one of our greatest national challenges, this sector should be encouraged – not burdened.  Every restaurant that closes means job losses, suppliers lose customers, farmers lose markets, local economies lose spending.

The ripple effect extends far beyond a single business.

A Different Approach is Needed

FEDHASA believes there is a better way.

Government should actively work with the hospitality industry to create an environment where businesses can grow, invest and employ more South Africans.

This includes:

• Simplifying regulatory compliance for small and medium-sized hospitality businesses.
• Conducting meaningful economic impact assessments before introducing new regulations.
• Recognising hospitality as a strategic employment sector deserving of support.
• Ending the ongoing disruption to essential bulk services that is undermining business sustainability.
• Moderating above-inflation increases in rates and utility charges.
• Creating incentives for businesses that expand employment and skills development.

Hospitality is an Investment in South Africa

Restaurants are far more than places where people eat – they are community gathering places, tourism attractions, training grounds for future professionals and one of the country’s most accessible entry points into employment.

The latest Statistics South Africa figures should serve as a warning.

Our industry remains resilient, innovative and optimistic.

But resilience cannot replace profitability.

If South Africa genuinely wishes to reduce unemployment, stimulate tourism and grow local economies, then the restaurant and food service sector must be recognised as a strategic partner in economic development – not simply another industry upon which additional costs and regulatory obligations can be imposed.

Supporting hospitality businesses is not merely good for the industry.

It is good for employment.

It is good for tourism.

It is good for communities.

And ultimately, it is good for South Africa.