Business News 13.9.2016 12:57 pm

Burger King shakes off declines at store level

Fast-food chain Burger King plans to buy Canadian chain Tim Hortons in an acquisition that will make it the world's third largest in the fast-food sector, the companies say

Fast-food chain Burger King plans to buy Canadian chain Tim Hortons in an acquisition that will make it the world's third largest in the fast-food sector, the companies say

Average monthly store revenues fell from R1 million last year to R800 000 in the year to the end of June.

The Burger King chain has continued to expand across South Africa and increase overall revenue over the past year although average monthly store revenues have declined by 20%, franchise owner Grand Parade Investments (GPI) said on Tuesday.

GPI said average monthly store revenues had fallen from R1 million last year to R800 000 in the year to the end of June, largely as a result of the consumer coming under pressure because of the weak economy and rising prices.

The company noted drought conditions throughout Southern Africa over the past year, which had resulted in significant increases in food prices. On a brighter note, however, GPI said continued localisation on their inputs had helped to improve Burger King’s gross margins.

Burger King’s total annual revenue for the year to the end of June had come in at R485.2 million, representing an increase of 56% on R307.8 million the year before.

GPI, the company that brought the Burger King franchise to South Africa in 2013, said the chain had added 24 new restaurants to the network in the year under review, taking the total number to 62.

– African News Agency (ANA)

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