Burger King, the global fast-food chain and the second-largest hamburger chain in the world, is bringing its famous burgers to South Africa.
The company announced on Thursday that in line with its aim to expand its brand presence in high-growth emerging markets, it had entered a joint venture with South African gaming and leisure group, Grand Parade Investments (GPI).
GPI and Burger King Worldwide will form Burger King South Africa, which will hold the long-term master franchise agreement. It will have rights to develop the brand in the local quick-service restaurant market.
The first restaurant will open in Cape Town during the first half of next year, and a national roll-out will follow.
José Cil, president for Europe, the Middle East and Africa at Burger King, said the company had, with the help of GPI, studied the Southern African region and decided that now was the time to develop the brand locally.
GPI executive chairman Hassen Adams said: “Grand Parade Investments is continually evaluating opportunities that will help support the company’s strategic objectives. Our extensive experience in the management of our outlet-driven business will add substantial value to the newly acquired Burger King master franchise.”
Although the transaction is subject to regulatory approvals, Cape Town mayor Patricia de Lille said: “Foreign direct investment that boosts our city, and our country, is warmly welcomed.”
“The aggressive growth plans are expected to contribute significantly to the South African economy and create a significant number of jobs for South Africans over the next five years and beyond,” the companies said in a statement.
Burger King currently operates in more than 12,600 locations worldwide, serving an estimated 11-million customers daily in 83 countries.