McDonald’s SA CEO steps down

Against a background of what sources said was a poor company performance and declining market share, McDonald’s SA CEO Greg Solomon has stepped down after 29 years with the company, including 15 at the helm of the food franchise.

Despite its strong brand, being a top 10 eatery and attracting a sizable customer base in South Africa, McDonald’s has been losing market share to competitors.

Market research foundation Eighty20, points to KFC maintaining its position as the country’s preferred quick meal chain.

McDonald’s SA CEO steps down

According to Eighty20, other brands which have grown to threaten McDonald’s market share include Chicken Licken, Burger King and Steers.

Commenting on Solomon’s departure, McDonald’s SA chief marketing officer Daniel Padiachy, described the resignation as being “mutually agreed that now is the right time for him to step down”.

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Padiachy said leadership changes were “natural for any organisation”.

“While Greg has built a strong foundation that has been established, now is the time to welcome new leadership,” Padiachy said.

“Greg has guided the company through both its most successful milestones and its greatest challenges.

Leadership changes ‘natural for any organisation’

“Over the past 15 years as CEO, he has spearheaded the addition of 230 new restaurants, resulting in a total portfolio of over 400.”

He said Solomon would remain involved on the board, “ensuring continuity, helping facilitate a seamless transition for the incoming CEO”.

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Among factors which led to the McDonald’s brand coming under pressure, sources blamed Solomon’s lack of foresight, which led to:

• A 2% market share decline from September 2023 to September 2024;
• A considerable decline in sales over the past three years;
• Sluggish growth;
• A significant market share loss to KFC, Burger King and Steers;
• A decline in market share trading in the last three years;
• Ballooning operating expenses and capital expenditure costs; and
• Cashflow earnings before interest, depreciation, taxes and amortisation decline.

“McDonald’s has been hit by profit decline due to a continued decrease in sales figures,” a source said.

Profit decline

“While the company has been seen as segment leading popular brand, Solomon’s lack of vision and innovation has seen him coming under pressure and being forced to step down.

“Solomon’s management of McDonalds, with a vast customer base and spend, has also left a company far from profit-making and financial stability.”