THINK ABOUT THE (BURGER) KING’S ARRIVAL?
The excitement surrounding Burger King’s (BK) landing in Cape Town sparked frenzy, with queues spilling out the doors at its f lagship store for weeks after opening. It then comes as no surprise that the company’s Cape Town store had sales of R4.9m in its first seven weeks! But it won’t be long before Jo’burg and the rest of South Africa get a chance to taste the legendary Big Whopper. Due to the well-received response from the market and numerous franchisee notices of interest, hundreds of CVs and other potential deal f low indicators that management has received, the roll-out could be a lot more aggressive than anticipated.
But how does the local competition feel about its entry? Spur anticipated the entry of Burger King in the local market and thinks that there is a possibility of more international quick services restaurant (QSR) brands entering the local market on the pizza side and perhaps the casual
“THE MORE ACTIVITY IN THE FOOD SERVICE CATEGORY, THE MORE IT WILL dining side. But the brand appears to be unperturbed by this as the high standards of the South African industry have seen other international bra nds c r a s h a nd burn as they enter the market.
Kevin Hedderwick, CEO of Famous Brands, says that food service franchising is on a par and, in some cases, better than what we see internationally and welcomes the competition. “We need not have an inferiority complex about the quality of the food service franchising business in SA. What we see is the arrival of a number of international brands and that is good for the industry. The more activity in the food service category, the more it will grow.”
As the group’s Steers QSR f lame-grilled burger offering holds a major portion of the local market, the business is exposed to market growth and thus expansion in the category would most likely work in its favour.
But Burger King’s brea k f a s t of f e r i ng is “highly competitive,” says Carlo Gonzaga, CEO of Taste Holdings, “and may disrupt the fairly new Steers and McDonald’s breakfast offerings. Likewise, Burger King’s chicken offering is also highly competitive and will directly compete with KFC.” Sasol and BK SA have embarked on a joint initiative that will see the two brands leverage off one another’s strengths and capabilities to enhance the consumer experience in the fuel retail environment. The deal allows for BK SA to open stores within Sasol’s national fuel retail network and will include company-owned outlets. It will also award franchising opportunities to