South Africans have saved R12,5-million on groceries while preventing 200 000 meals from ending up in landfill through Refreshi, a local startup that built a surplus-food marketplace that has expanded from just 35 partner stores to 700 nationwide in the space of a year.
The startup has released its inaugural Grocery Savings Impact Report, revealing how the sale of quality surplus food at discounted prices (instead of throwing it away) is helping South African households stretch their grocery budgets while creating a new revenue stream for retailers.
Through its app, Refreshi connects consumers with quality surplus food from grocery stores, bakeries, and restaurants. Users can browse discounted “Surprise Bags” available at participating stores near them, pay for them securely online, and collect them during a scheduled pickup window at the end of the day. Food that would otherwise have been discarded is instead enjoyed by consumers at a fraction of the original retail price.
The platform now serves more than 200 000 registered users and rescues more than 20 000 quality meals from landfill every month.
Over the past year alone, South African consumers have collectively saved R12,5-million on their groceries through Refreshi Surprise Bags, while participating retailers have recovered more than R10-million in revenue from quality food that would otherwise have been written off, undeservedly, as waste.
The local environmental benefits have been equally significant. By rescuing approximately 1kg of food through every Surprise Bag sold, the Refreshi community has prevented an estimated 500 000 kilograms of CO₂ emissions, conserved 120-million litres of water, and saved more than 400 000 square metres of agricultural land.
“Food waste isn’t only an environmental issue, it’s becoming a cost-of-living issue for millions of South Africans,” says Jakob Holbak, CEO and founder of Refreshi. “Every Surprise Bag helps a family spend less on groceries while helping a business recover value from food that is still perfectly good to eat. That’s why we’ve seen such strong growth over the past year.”
Refreshi’s popularity comes against the backdrop of a severe national food waste challenge. Based on the latest industry reports, South Africa discards an estimated R61,5-billion worth of food every year – with approximately 10,3-million tonnes of edible food being sent landfill annually.
“Organic waste now accounts for more than half of the country’s general waste stream, placing increasing pressure on municipal landfill sites while local households continue to battle rising food prices during a cost of living crisis that has been extremely punishing to consumers this year,” says Holbak. “We believe technology can help change these circumstances – for consumers, retailers and our environment. By creating an easy-to-use, everyday app, we knew we could build a pathway for consumers and businesses to keep surplus food in circulation, while putting money back into both their pockets.”
Refreshi conservatively expects to exceed 2 000 participating stores within the next year. Looking further ahead, the company sees the opportunity to build one of South Africa’s largest circular economy marketplaces by rescuing millions of meals annually. International markets suggest the opportunity is substantial. Italy, with a population similar to South Africa’s, has nearly 29 000 participating stores on comparable surplus-food platforms, rescuing approximately 22-million meals every year.
“Our startup aims to play a role in complementing the important work already being done by organisations such as FoodForward SA -with which we have partnered – and SA Harvest,” says Holbak. “While food donations remain critical for supporting vulnerable communities, not every surplus product can be redistributed quickly enough. Refreshi’s app helps bridge that notable gap.”