Burger King Wants to Rule in South Africa

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McDonalds’s Big Mac has already made its mark on South Africa. Now it is time for the Whopper to do the same.

At least, Burger King hopes it will do so. The fast-food chain has opened its first franchise in Cape Town.

Burger King, the world’s second-largest hamburger chain, plans to eventually open more than six restaurants by the end of the year in Cape Town. And the chain will expand next year to Johannesburg.

Grand Parade Investments (GPI) owns the Burger King rights in southern Africa. GPI is a Western Cape-based, Black owned and controlled holding company.  It plans to roll out the burger brand through its already established slot machine business as well. GPI’s slot machine outlets are dedicated gambling areas in existing pubs and GPI will set up “hole-in-the-wall” Burger Kings at these outlets.

“Burger King has studied the Republic of South Africa closely for a number of years and feels the time is right,” says Burger King South Africa CEO, Jaye Sinclair. “We have identified the right partner, Grand Parade Investments–a local social investment company with extremely strong operational and financial expertise. Together we are positioned for good growth in South Africa’s mature but fast growing fast food industry.”

In South Africa, Burger King is using local vendors. “We currently use local supplier Dew Crisp for all our vegetables,” says Sinclair, “and are in final stages of approving more local suppliers for meat, buns, fries and other items.  Once the infrastructure is in place, most of our suppliers will be local companies.”

This is not Burger King’s first venture into Africa. The chain already has 25 franchises on the continent, in Egypt and Morocco.

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