McDonald’s SA Dedicated to Growth Despite Intense Competition


McDonald’s South Africa stated that the company is definitely on track to double revenue in the next four years and is going ahead with plans to open about 25 restaurants a year despite intensifying competition and tough trading conditions.

According to McDonald’s MD, Greg Solomon, the fast food market is seeing intensifying competition as customers are “down trading” due to rising costs. While McDonald’s is feeling the strain slightly, they are also gaining new customers who are turning away from competitors with more expensive offerings.

McDonald’s SA now has 163 restaurants around the country but is hoping to speed up growth next year as there is space to grow in parts of the North West, KwaZulu-Natal and the North Western Cape. Eventually the company also hopes to expand into Africa; however Mr Solomon said that “South Africa remained a priority.”

A growing concern for the company is the expansion of other international franchises into the country. Yum, which owns KFC in SA, is planning to bring in the Pizza Hut franchise, while Burger King is also eying South Africa as fertile ground for expansion.

If McDonald’s are concerned about the growth of other companies though, they certainly aren’t showing it as Mr Solomon calmly stated, “Threats are always there, but it also says someone else sees opportunity in this market.”

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