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Johannesburg – International fast food group McDonald's will appointment a local operator for its South African operations by the end of 2010.
The group has also outlined a roll-out plan to add 100 new restaurants to its network of 135 restaurants over the next five years, beginning with 13 this year and 25 next year – a move that will up the stakes in an already highly competitive market.
Last year McDonald's announced it was seeking a local licensee to take over its SA operations, as it believes a domestic company would be able to grow the brand faster.
"We have final candidates, but I can't mention who they are. What's more important for us is to get the right candidate," said Tim Fenton, the group's president for Asia, Pacific, Middle East and Africa.
Fenton said about 20 serious applicants were being considered. That number has been whittled down to "a handful of very talented and qualifying candidates", with the decision expected to be made before the end of the year.
"We're looking for a local licensee who can take McDonald's South Africa to where we want it to be," Fenton told Fin24.com. Part of the near-term vision is the opening of a further 100 new restaurants over the next five years.
Fenton said the planned rapid expansion was a vote of confidence in the country, as the group's local operations have been reporting double-digit growth over the past five years.
In August 2009, McDonald's introduced the 24/7 concept in its SA restaurants against fears of heightened criminal activity and abuse. At present nearly 70% of local outlets are open around the clock, with minimal criminal activity having been reported so far.
McDonalds, which has been an official sponsor of the FIFA World Cup since 1994, said the event would leave a lasting impact on its operations.
"We look at it more as a connection with our customer base who love football. It's hard to quantify that in the near term," said Fenton.
McDonald's has tied many of its activities around the World Cup, including the development of themed menus.
- Fin24.com
