Burger King bites into S.Africa's middle class - CNBC Africa

Burger King bites into S.Africa's middle class

Southern Africa

by Trust Matsilele 0

Burger King South Africa opened its first meat manufacturing plant in the country. PHOTO: Burger King

The maker of the famous Whopper Burger says it is targeting the ever ballooning middle class in the country with Johannesburg being the main economic hub.

“The plant we have built is primarily for South Africa only but we have equipped it in such a way that we can double its capacity if we start looking beyond our borders” Jaye Sinclair, chief executive officer of Burger King South Africa told CNBC Africa.

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The company's expansion prospects are informed by South Africa's growing middle class that jumped from about 10 million people in 1990 to 28 million people today demonstrating the substantial growth of the market.

(READ MORE: Fast food outlets compete for a piece of the pie)

South Africa’s food outlet sector accounts for 1.9 billion rand a year.

The company has in the past noted that as a strategic decision, it was not considering going into franchise marketing presently but would focus more on company stores.

The fast food outlet is also intending to rely more on local manufacturing so as to increase the company's margins.

“By December of this year only 8 per cent of our products will be imported all other products will be manufactured locally,” he added.

"There is a new demand that is being created by Burger King, in 1995 there were about 9 million who were using fast foods restaurant and that number has grown to 25 million people this shows the market is growing". 

The fast food sector is congested with international players however, that has not deterred Burger King from making inroads into the South African market.

(WATCH VIDEO: Burger King opens 1st store in Durban in two weeks)

With 13,000 outlets in 88 countries, the food giant expects to expand its presence in the South African fast food sector.

Burger King has five stores in Western Cape and currently exploring growth opportunities in other provinces noting that its products resonates with the South African public.

BY TRUST MATSILELE

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