GPI and BURGER KING® Worldwide will form BURGER KING® South Africa (Pty) Ltd (“BKSA”) which will hold the long-term Master Franchise agreement for BURGER KING® in South Africa and will have exclusive rights to develop and expand the BURGER KING® brand in South Africa’s quick service restaurant (“QSR”) market.
The first BURGER KING® restaurant will be open in Cape Town during the first half of 2013 and will be followed by a national roll-out that will enable the BURGER KING® business to become a major presence and employer in South Africa. 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.
BURGER KING® is globally acclaimed for its customised, affordable and high quality flame-grilled 100% beef burgers and chicken products. BURGER KING® customers will also be introduced to a new QSR concept with the BURGER KING® ‘have it your way’ offering which allows customers to customise their burger to their own preference.
Mayor of Cape Town, Patricia de Lille said: “The City of Cape Town works hard to create a prosperous city that enjoys economic growth and development and job creation. Foreign direct investment that boosts our City, and our country, is warmly welcomed. We are honoured to welcome global giant BURGER KING® to Cape Town and South Africa. The City of Cape Town congratulates Grand Parade Investments on their joint venture agreement with BURGER KING® and its efforts in bringing this high quality global brand to South Africa.”
José Cil, President, EMEA, BURGER KING® said the company has together with GPI closely studied the southern African region and “now is the time to develop the brand in South Africa.”
“We strongly believe the joint venture is uniquely positioned to succeed in South Africa’s lucrative QSR market.”
BURGER KING® is expected to be well-received by South Africans who enjoy high quality, flame-grilled and not fried, 100% beef and chicken burgers. The price will also appeal to South Africans who have previously found healthier QSR brands unaffordable.
“We are really looking forward to a healthy relationship with BURGER KING®,” said Hassen Adams, Executive Chairman of GPI.
“The introduction of BURGER KING® to South Africa will bring much-needed new jobs and careers for our people and help in reducing the high unemployment rate,” said Adams.
GPI was selected as the joint venture partner for BURGER KING® for a combination of key factors including its financial resources, industry-leading operational know-how in the hospitality sector and expertise in running outlet driven businesses. In order to grow aggressively in the South African Market, BURGER KING® Worldwide felt that a strong operator like GPI was the key to success.
Since its foundation in 1997, GPI has reported strong growth and solid revenue performance across its portfolio of investments.
Hassen Adams, Executive Chairman of GPI said: “Grand Parade Investments has always been associated with world-class partners, for example we successfully partnered with Sun International to secure the casino licence in Cape Town and with the Tatts Group to develop and grow our slots business in the Western Cape and KwaZulu Natal. BURGER KING®, being a world-class brand, adds another landmark achievement to our strategic intentions to grow the company and to develop the South African market. Grand Parade Investments is continually evaluating opportunities that will help to support the company’s strategic objectives”.
“GPI’s joint venture with BURGER KING® is a strategic move to enter the QSR market. Our extensive experience in the management of our outlet driven business will add substantial value to the newly acquired BURGER KING® Master Franchise”.
The transaction is subject to customary regulatory approvals.
ABOUT GRAND PARADE INVESTMENTS
Grand Parade Investments Ltd. (GPI) was formed in 1997 to conduct business as an investment holding company with interests in the gaming and leisure industry. In June 2010 it acquired 100% ownership of its Limited Payout Slot Machine (LPM) operations and in so doing became an investor and operator. The company comprises a substantial shareholder base representing a broad spectrum of the population of the Western Cape and is an extremely proud, and truly Broad-based, Black Economic Empowerment enterprise. The company has been trading effectively on the JSE since 2008 and has consistently grown its portfolio to the benefit of all of its shareholders on an annual basis. In addition to its 25.1% shareholding in the Table Bay Hotel, as well as both the GrandWest and Golden Valley Casinos, it also presently operates over 1,800 LPMs at over 400 different locations across Gauteng, KwaZulu-Natal and the Western Cape.
ABOUT BURGER KING® WORLDWIDE HOLDINGS, INC.
Founded in 1954, BURGER KING® is the second largest fast food hamburger chain in the world. The original HOME OF THE WHOPPER®, the BURGER KING® system operates in over 12,500 locations serving more than 11 million guests daily in 82 countries and territories worldwide. Approximately 90 percent of BURGER KING® restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. BURGER KING® Worldwide Holdings, Inc. is privately-held by 3G Capital, a multi-billion dollar, global investment firm focused on long-term value creation. For more information on 3G Capital, please go to http://3g-capital.com. To learn more about BURGER KING® Worldwide Holdings, Inc., please visit the company’s website at www.bk.com or follow us on Facebook and Twitter.
For further information contact:
Grand Parade Investments
Tel: +27 21 421 7771