Despite Africa having 54 economies and a population of 1 billion, McDonald's has only expanded to four markets, South Africa, Egypt, Morocco and Mauritius.
McDonald’s South Africa CEO, Greg Solomon said the fast-food retailer’s decision to expand to the next African market will be based purely on supply-chain factors. He noted there is an opportunity to deploy the existing supply chain in South Africa to access markets further north.
Solomon added it’s a matter of time before McDonald’s enters Nigeria, and the decision will be based on when the corporation has been able to establish the supporting supply chain infrastructure, such as adequate potato production.
McDonald’s is in its 20th year of being in the South African market. However, according to Solomon, innovative thinking is required in the current economic climate to ensure the business remains profitable.
In addition to its well-known products such as the Big Mac, McDonald’s adapts its menu to cater for national and even regional local tastes to attract consumers. “So what we may deploy in KwaZulu-Natal to what we may deploy in Johannesburg versus in the Western Cape will be completely different product offerings.” he said.
