As the country welcomes the sudden arrival of Domino’s, the ‘leading international pizza delivery brand’, Tamsin Green sets out to discover just how well other international fast food chains are fairing in South Africa.

Domino’s Pizza

It wasn’t long after Taste Holdings (a locally based group) announced their exclusive 30-year master licence with Domino’s Pizza that the first brightly lit stores popped up in Cape Town, Johannesburg and Durban. The morning of 31 October saw the official launch of four Domino’s branches: Flamingo Square in Table View, Glengarry Shopping Centre in Vredekloof, Rivonia Junction in Rivonia, and Atholl Heights, Westville.

We are expected to see two more open this year, with plans to expand throughout the country in early 2015. Taste Holdings have yet to comment on the locations of these outlets. Domino’s will also become the leading pizza franchise of Taste Holdings, as the group’s other pizza brands, Scooter’s Pizza and St Elmo’s, will ultimately convert to Domino’s braches. “We have no doubt that the brand’s introduction will also afford even greater business opportunities for both existing and potential business owners who are looking to make a mark in the fast food franchising market,” says Carlo Gonzago, CEO of Taste Holdings.

With over 10800 stores around the world and global retail sales of $8 billion in 2013, Domino’s is an intimidating contender indeed. Last year, Forbes reported that Domino’s was the pizza-sales leader in 70 countries, and a close second in 29 others.

Domino’s Pizza is licensed to Taste Holdings

Burger King

On 9 May 2013, Cape Town watched as a line of people snaked through Heerengracht Street on the Foreshore. The epic queue wasn’t for concert tickets or a rare celebrity appearance, but for the official launch of South Africa’s first Burger King store. (Read our comparison of burgers from Burger King, Steers and McDonald’s.) It’s 18 months later and the burger chain has 25 restaurants spread across Cape Town, Gauteng and Durban. Friday 7 November will see that total increase to 29, with four new outlets set to open by the end of the week in Key West Shopping Mall in Krugersdorp, Westville Mall in Westville, Promenade in Mitchell’s Plain and Wonderpark in Akasia. The most successful Burger King franchise thus far is on Rivonia Road, Sandton, and their best-selling menu item has proven to be the famous Whopper burger.

Burger King South Africa is licensed to Grand Parade Investments and Burger King® Worldwide

McDonald’s

The McDonald’s Corporation, the world’s largest chain of hamburger fast food restaurants, first opened its doors to hungry South Africans in November 1995 in the suburb of Blackheath, Johannesburg. The brand, which is set to celebrate its 20th year in South Africa next year, has 209 restaurants spread across all nine provinces and there are plans to open more by the end of 2014. The corporation is currently looking to expand their reach in diverse markets and recently opened a restaurant in Bela Bela, Limpopo, and Mafikeng in the North West province. It should come as no surprise that their bestselling menu item is the Big Mac.

McDonald’s South Africa is owned by Shanduka (70%) and Cyril Ramaphosa (30%)

KFC

KFC has been part of the South African fast food culture for over 40 years and the very first store, which opened in 1971 in Orange Grove, Johannesburg, continues to buzz with customers today. The brand has been voted South Africa’s most loved fast food brand for the last 16 years running in the Sunday Times Top Brands Awards, thanks in part to a large national footprint and the popularity of their bestselling value-for-money meal, the Streetwise Two. Today, there are over 750 KFC restaurants strewn across the country, with 76 owned by KFC and the remaining outlets owned and run by local franchisees. The managing director of KFC Africa, Doug Smart, reveals that KFC has over 25 000 employees working in their restaurants in South Africa alone. “Our primary expansion model is built through our franchisee system and allows us to bring our global experience and marry it with people on the ground with insightful local understanding,” he says, adding that their growth is driven mainly by franchisees in existing markets. While KFC restaurants are popular in big cities – their most successful store is in Bloemfontein – they perform extremely well in smaller towns such as Carletonville in western Gauteng, where they are regarded as the leading fast food restaurant in the area. KFC also does well in towns on popular travel routes, such as Naboomspruit in Limpopo, in particular.

KFC is licensed to the African branch of Yum Restaurants International (YRI Africa)

Locally based companies like Famous Brands (who own local favourites like Steers, Debonairs Pizza and Wimpy) seem to have overcome slow consumer spending habits with a reported 18% rise in first-half profit for 2014, but international fast food chains are hot on their heels as they continue to expand their South African footprint. By the looks of things, the Domino’s effect will almost certainly impact local pizza delivery chains, but only time will tell who will win what the media has dubbed ‘the pizza wars’.