Up to 25 new Burger Kings to open yearly
GPI CEO Alan Keet says Burger King has exceeded his wildest expectations.
JOHANNESBURG - Grand Parade Investments (GPI) says its wildest expectations for Burger King have been surpassed.
Chief Executive Officer (CEO) Alan Keet on Tuesday revealed the company aimed to establish up to 25 new outlets per year.
Currently, there are six Burger King stores in Cape Town and four in Gauteng.
Keet says GPI has already exceeded its development requirements by opening 10 outlets in a short period of time and that it will continue to do so.
Speaking on The Money Show late on Tuesday, Keet said by the end of its planned development period for the next five years, there are going to be up to 130 Burger Kings in the country.
The CEO says GPI's deal with Sasol remains the only franchisee agreement so far.
He says after 2014, the company could look for more franchisees.
"In terms of our agreement with Burger King, we have to own the majority of stores."
Keet says a typical store costs around R4,5 million.
With massive queues forming at the new stores in Cape Town and Gauteng, many potential customers have given up on getting a burger from the company any time soon.
People queue outside South Africa's first Burger King outlet in Cape Town, 9 May 2013. Picture: Rafiq Wagiet/EWN.
But Keet says this isn't as concerning as it might seem, based on the results in Cape Town.
"If anything, it just created more of a hype. Those that did go away initially certainly came back."
Keet says GPI's Burger King operation is running around 60 percent ahead of targets.