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Goodbye SPAR, hello McDonald’s

SPAR South Africa CEO Max Oliva has stepped down after three decades with the JSE-listed retailer to lead fast food giant McDonald’s South African operations.


McDonald’s says that Oliva (left) will take up his new position on 1 July, replacing Greg Solomon, who was CEO of McDonald’s SA for 15 years before the company announced in this February it was mutually agreed that it was the right time for him to step down.

“Leadership changes are natural for any organisation, and while Greg has built a strong foundation, now is the time to welcome new leadership,” said Daniel Padiachy, CMO of McDonald’s South Africa.

“Greg has guided the company through both its most successful milestones and its greatest challenges. Over the past 15 years as CEO, he has spearheaded the addition of 230 new restaurants, resulting in a total portfolio of over 400 restaurants.”

McDonald’s SA now employs 15 000 people, [See great article on Solomon below]

“Oliva was selected following a rigorous executive search process aimed at identifying a leader with the vision, discipline, and commercial acumen to guide the business into its next phase of transformation. His appointment comes at a pivotal time for McDonald’s South Africa, as the brand continues to evolve in a fast-changing consumer landscape,” the company said in a statement.

SPAR said Oliva was leaving behind a “remarkable legacy”, noting that he had held several senior leadership roles across the group.

“His steady leadership helped the group navigate some of its most challenging periods, including the Covid-19 pandemic, the implementation of the SAP [IT system] and the broader adoption of new technologies across the business.”

Oliva began his career at Spar in 1995, and was appointed to various senior supply chain and logistics roles before moving to Ireland in 2015 to head up the local SPAR’s supply chains.

He returned to South Africa two years later as managing director of SPAR KwaZulu-Natal.

In August 2022, he was appointed to head SPAR Southern Africa, where he oversaw operations of more than 2 000 independent SPAR grocery and TOPS liquor stores across the region.

A few months later, a disastrous SAP implementation went live at the group’s distribution centre in KwaZulu-Natal, which crippled its supply chain. SPAR’s half-year results, released a week ago, showed that it is still recovering from the impact, and that it continues to battle market share losses in SA — especially among richer customers.

The company’s share price is currently trading at R113 from around R135 three years ago.

Oliva said in the same statement it was “not an easy decision” to leave SPAR and that the business was in “capable hands”. He holds an MBA from the University of Wales, Cardiff, and a Bachelor of Technology from the Durban University of Technology.

Angelo Swartz

Oliva’s successor at SPAR

To ensure continuity and maintain momentum, Spar Group CEO, Angelo Swartz will assume operational leadership of the Southern Africa region.

Swartz’s transition into the expanded role is underpinned by the support of a strong and experienced Group Executive Committee, who will continue to drive the broader strategic and operational initiatives across the business.

This structure, says the company, will enable Swartz to focus his attention on the Southern Africa operations and ensure continued progress on key priorities, particularly around reigniting top-line growth, unlocking operational efficiencies, and supporting our independent retailers.

Swartz, it adds, is a highly experienced executive with a longstanding career at Spar and a deep understanding of the local market and retailer network.

Source: News24, McDonald’s, SPAR

Related reading:

The man behind McDonald’s success in South Africa

Greg Solomon joined McDonald’s when it only had four locations in South Africa, and under his leadership, the brand has around 400 stores today.

Although Solomon is now one of the country’s biggest CEOs, he started his career as a civil engineer who almost didn’t apply for a job at McDonald’s.

Is McDonald’s  tempting fate by hiring Oliva?

CEO’s  past at Spar was a minefield of controversy and looming legal threats make him a liability

Max Oliva has officially taken the reins as CEO of McDonald’s SA. However, Oliva comes with baggage that could distract him from steering the fast-food giant to greater success. 

Oliva’s controversial tenure at Spar, marked by alleged governance failures and looming legal battles, raises serious questions about his ability to lead McDonald’s SA effectively. Unfazed, McDonald’s SA has confirmed in a brief email that Oliva has started work, noting his presence at the Sandton head office. 

Some in the know suggest Oliva may prefer working remotely from Durban. If true, this sets a worrying precedent. A CEO’s physical absence can erode trust, weaken corporate culture and hinder crucial face-to-face decision-making.

If Oliva is based in Durban, thereby distancing himself from staff at the headquarters, how can he inspire confidence? That said, let’s  assume he is based in Sandton and not question the fast-food retailer in that regard. 

Oliva’s past at Spar was a minefield of controversy. On his watch, alongside former chair Graham O’Connor, the retailer suffered catastrophic governance failures, most notably the disastrous SAP software rollout and the questionable R500m Encore acquisition, which shareholders allege was a related party deal. 

These missteps contributed to Spar’s plummeting share price and eroded investor trust. What should be worrying for Oliva and his new employer is that Spar’s new chair, Mike Bosman, has vowed to hold former executives accountable…..

BusinessLive: Read the full article here (paywall)