Burger King


About Burger King

2019 marks 6 years since BURGER KING® opened its doors in South Africa on 9 May 2013.

During those first heady days, the focus was all about delivering the Gold Standard WHOPPER®, but the major gap was the restaurant returns at around -9.92% in 2014. Fast forward to 2019, and most of our new restaurants deliver returns up to, and in excess of 30% even when we open in a customer constrained economy like today. If we build it in the right location, they come. We got this right from an extensive investment in In-House GIS, supported by market geo-demographic data to cross-validate our assumptions.

The improvement in returns have included a localised beef plant since May 2014 and 99% of our supply chain being localised. There have been invaluable partnerships along the way, but the largest factors have been entering the price-sensitive value market and unlocking the operational leverage from achieving scale at about 60 restaurants.

Despite the sugar, tax biting off 1% in gross margin, or the VAT increases another 0.3%, or the minimum wage pushing labour up 17%, our outlook on the growth potential of this business in South Africa remains highly optimistic, verging on the ecstatic. In the first quarter of 2019 our sales are on-track for unprecedented like-for-like growth, and even more importantly, gross profit growth outstripping this by double.

We have the opportunity to grow another 80 restaurants that achieve sales over R12m per annum. And this only in catchments where the average household incomes are on average R20k per month. Due to operational leverage, each new site flows through to the bottom line, moving the needle in diluting the G&A, and this should deliver profitability in the next 12 months.

We are excited about the future and our customers continue to support us as we grow the restaurant footprint to serve more locals with our flame-grilled beef and crispy chicken burgers.

Each day the restaurant chain strives to serve guests with great tasting food, fast. The team is continuously looking for new ways to excite the market with ‘local is lekker’ options like the much-loved Boerewors Burger, Malva Pudding and the ‘Ouma approved’ Milktart Milkshake. We will continue to build WHOPPER® love with new innovations like our newly launched BK® App.

Contact Details

Head Office: 33-on-Heerengracht, Cape Town, 8001

Website: www.burgerking.co.za