S.A McDonald's Corp franchise sold to Middle Eastern company

In a significant development earlier this week, the Shanduka Group, founded by South African Deputy President Cyril Ramaphosa, announced the ongoing process of selling the local operations of McDonald's Corp. to a Middle Eastern company. To provide more insights into this transaction, Greg Solomon, the CEO of McDonald's South Africa, sat down with CNBC Africa for an exclusive interview. Solomon clarified that while the deal has not been finalized, it has progressed significantly. The competition commission recently approved the transaction, marking a crucial milestone. He mentioned that it would take a couple more months for all legal, financial, and operational aspects to be concluded. The competition commission's key consideration was ensuring that the incoming Middle Eastern company, which boasts 20 years of experience in running McDonald's outlets globally, would be a valuable addition to the South African market. With over 160 restaurants and 5,000 employees, the new owners are poised to bring expertise and passion to the local McDonald's business. When questioned about the rationale behind the sale by Ramaphosa's group, Solomon explained that the move aligns with the Deputy President's plan to divest from assets upon entering politics in 2012. Despite the impending change in ownership, Solomon expressed optimism about the handover to a capable organization. Shifting focus to the South African consumer, Solomon commended their discernment and role in driving McDonald's South Africa's menu evolution. Over the years, the company has tailored its offerings to suit local tastes, with 70% of the menu distinct from its US counterpart. The South African consumer base, characterized by a growing middle class, has played a pivotal role in shaping McDonald's business strategy. Addressing expansion plans, Solomon mentioned that McDonald's currently operates in Egypt, Morocco, and South Africa. While there are aspirations for growth across Africa, the immediate focus remains on consolidating and expanding operations within South Africa, leveraging existing opportunities and market potential. In response to market competition, Solomon emphasized the need for continuous innovation and adaptation. The introduction of services such as the McDonald's app, delivery services, and Mac Cafe underscores the brand's commitment to staying relevant and meeting consumer preferences. As the interview concluded, Solomon reflected on the dynamic landscape of the South African market, characterized by the influx of international brands and evolving consumer demands. He highlighted the importance of consistent execution and service delivery to stay ahead in a competitive environment. The impending transition in ownership marks a new chapter for the South African McDonald's franchise, promising fresh perspectives and continued growth in the region.