Burger King comes to SA
Burger King, the global fast-food chain, is bringing its famous burgers to South Africa. Burger King Worldwide today announced that it has entered into a new joint venture agreement for South Africa with JSE-listed Grand Parade Investments (GPI) focused on aggressively expanding the Burger King brand presence in this high-growth emerging market.
Under the new agreement, BKW and GPI, a black-owned leader in the South African tourism, leisure and gaming industry, are committed to opening a significant number of Burger King restaurants over the next few years. The joint venture is subject to regulatory approval in South Africa and is expected to close before the end of the year.
The joint venture will introduce the Burger King brand’s world famous flame-grilled beef burgers and chicken products to millions of new consumers in South Africa. The opening of the first restaurant in the innovative new global design is planned for Cape Town in 2013.
Additional Burger King restaurants are expected to open across the country to enable the Burger King business to become a major presence and employer in the country.
The joint venture will uniquely position the Burger King brand for rapid expansion in South Africa by combining GPI’s significant financial resources with BKW’s industry-leading operational know-how. Under the terms of the partnership, GPI has signed a long-term master franchise and development agreement with BKW and has obtained the exclusive rights to expand the Burger King brand in South Africa.
“We are thrilled to announce the continued expansion of the Burger King brand with this joint venture,” said José Cil, president, EMEA, BKW.
“We have closely studied the region with GPI and believe that now is the time to develop the brand in South Africa. Today’s announcement is a great example of our company’s strategy to accelerate international expansion by creating master franchise agreements with strong local partners in high-growth emerging markets.”
“Hassen Adams and the management team at GPI have an excellent operational and sales record demonstrating strong growth and solid sales performance in its leisure portfolio over the last couple of years,” Cil said. “We look forward to significantly expanding the scope of its portfolio with its first QSR investment.”
“GPI is perfectly positioned and poised to enter the QSR market with a significant number of restaurants planned over the next few years,” said Hassen Adams, chairman of Grand Parade Investments. “Our experience and our successful track record in our outlet driven business will add substantial value to the newly acquired Burger King master franchise rights.”
Adams added, “GPI has always been associated with world-class partners and the addition of Burger King, a world-class brand, certainly represents another landmark achievement for us. The introduction of Burger King to South Africa will bring much-needed new jobs and careers for our people. We are looking forward to a healthy relationship with Burger King Worldwide.”
In 2012, BKW successfully introduced similar joint ventures in Russia and China and in 2011, in Brazil – all focused on increasing market share in the fastest-growing economies worldwide.
Founded in 1954, Burger King is the second-largest hamburger chain in the world.
The original “Home of the Whopper”, it operates in more than 12 600 locations worldwide, serving an estimated 11-million customers daily in 83 countries.
More about GPI:
GPI owns an effective 25.1% economic interest in SunWest which owns and operates the GrandWest Casino and the Table Bay Hotel, and also owns a 24.75% stake in the CTICC.
- GrandWest provides its guests with the latest state-of-the-art gaming and non-gaming entertainment facilities.
- The Table Bay Hotel provides its guests with a luxury hotel experience in one of the most beautiful settings in the world.
- The CTICC has proven to be of enormous economic value and is rated as one of the top convention centres in the world.
GPI owns an effective economic stake of 25.1% in Worcester Casino which owns and operates the Golden Valley Casino and the Golden Valley Lodge in Worcester.
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