McDonald’s is by far the most popular foreign burger brand in South Africa. The company’s first store in the country launched in 1995, and it now has over 200 locations. Approximately half of these restaurants are franchised.
According to the McDonald’s website, they serve nearly 8 million customers per month and produced R4.34 billion in income from its 245 franchisees in 2017. This equates to R17.7 million in sales per branch, much higher than any other burger-focused franchise in the country.
Owning a piece of the global burger powerhouse does not come cheap or easily.
If you meet the qualifications for a new franchisee, you’ll have to spend between R4 million and R6 million. Franchisees must have 35% of this in cash, unencumbered and unborrowed.
McDonald’s also wants franchisees to be “geographically flexible,” which means they cannot promise applicants would be able to open a shop in a favoured area. Nonetheless, they offer to collaborate with the franchisee to identify sites that are most likely to thrive.
What is the cost of establishing a McDonald’s franchise in South Africa?
This implies that, depending on the type of restaurant and other circumstances, McDonald’s South Africa expects the cost of a franchise to range between R4 million and R6 million. Applicants must also have at least 35% of the acquisition price of a restaurant in unencumbered, non-borrowed cash.
How much do South African McDonald’s franchise owners make?
Some McDonald’s franchise owners may undoubtedly earn more than others, but the majority of franchise owners earn an estimated R150,000 each year.
