Burger King cuts deal with Sasol
The fast-food chain will open restaurants at a "substantial" number of Sasol forecourts.
JOHANNESBURG - Burger King South Africa has signed an exclusive agreement with Sasol to open restaurants at an undisclosed number of it's petrol station forecourts, beginning at the end of 2013.
The deal will include company-owned outlets as well as awarding franchising opportunities to current and potential Sasol franchisees.
CEO of Burger King South Africa Jaye Sinclair refused to reveal how many restaurants were in the works but said "it's a fairly substantial amount."
The American fast-food giant opened its first South African outlet in May this year to an overwhelming response from consumers.
The first two stores, both in Cape Town, saw customers queuing for hours to get their hands on the company's signature burger, the Whopper.
Sinclair said the test phase for forecourt stores may begin as early as December this year, adding, "We are ready."
He argued that the brand was experiencing high demand and was confident this would continue.
"We've only got two stores open at the moment and we're generating one and a half tonnes of Whopper meat every week, so the consumer definitely wants the product."
Sinclair explained the decision to join with Sasol came because the outlook for both companies was complementary.
"We've had a really good look at Sasol and we feel that their growth strategy is very beneficial for us and we also think that the brand synergies work well."
On the synergy between the brands, Sinclair cited Sasol's brand identity as a reason for the choice.
"We think that Sasol is a premium brand and at the same time it's a great South African story."
However, Sinclair noted, South Africa isn't the first country to see Burger King and a petrol retailer making such a deal.
"Burger King has already established some exclusive deals with fuel retailers in Spain, Germany and the Nordic region. It really is to try and create synergies with the brands and customer loyalty associated with those brands."
To listen to the full interview, click here.