Burger King focusing on company-owned stores - CNBC Africa

Burger King focusing on company-owned stores

Southern Africa

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Burger King opened its first store in South Africa in Cape Town in 2013. PHOTO: Getty Images

“We don’t want to jump into the franchising market at the moment so we’re opening company-owned stores. With Sasol, it’s just a strategic tie-up and we have an exclusive arrangement with Sasol,” Burger King’s chief executive, Jaye Sinclair, told CNBC Africa.

“We know this kind of model works worldwide. We have experience as Burger King international in this and so with Sasol, we’re looking at going to the four courts with low capex stores and trying to come out to the market a lot faster.”

The burger restaurant made its entrance into the Johannesburg region of South Africa over the weekend, subsequent to opening its first store in the country in Cape Town in 2013.

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“We’ve done very well. We opened in May and since our opening we have surpassed all our expectations on that store. We still run queues on weekends – the main store’s become a destination in the city,” Sinclair said.

While Burger King entered the South African market in the Western Cape as a joint venture with Grand Parade Investments, Sinclair indicated that it is currently evaluating opportunities in other provinces as well.

“We are going to be opening in The Zone in Rosebank soon. We’ve also got stores on Ghandi Square, Fox and Kruis, just over the road from Carlton Centre. We’ll be opening another store in Centurion at Maribu – another Sasol site, and that will all be during the course of March. We have quite a substantial footprint in Johannesburg already,” he explained.

“The industry is showing robust growth throughout all the sectors in the food industry. Our price point is very keen so we talk across all different LSM groups. At the moment we’re localising our supplier chain so as we do that, we improve our margin every day. For me it’s really to get out as fast possible into South Africa.”

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