Fast-food franchise McDonald’s South Africa is looking to export its locally manufactured products to the Middle East on a trial basis in an endeavour to be a contingency market for the Middle East, CEO Greg Solomon told Engineering News Online in an exclusive interview.

“Our interest in the Middle East is based on South Africa being a halaal-certified market and for our suppliers get to a level where the Middle East can use them as a contingency,” he advised.

The company currently boasted more than 80% local procurement. “McDonald’s is a global brand, but McDonald’s South Africa is very much a locally owned and -managed company,” Solomon stressed.

The company had worked diligently with its supply chain team, specifically in terms of food supply, to become globally recognised.

When asked whether he believed McDonald’s South Africa was capable of meeting increased demand for its products should it arise from the trial, Solomon said there was significant capacity to grow through the company’s suppliers as well as its franchise network and organisation.

He described the interdependent relationship between McDonald’s South Africa, its franchisees and service providers as a three-legged stool – “with one leg down, the stool is going to fall over”.

The expandability and the growth of McDonald’s South Africa was not just about the company’s strategy, it had to do with its franchisees’ and service providers’ strategies.

“We work directly with main suppliers, on their capability and capacity.”

As a result, Solomon said McDonald’s South Africa was creating local businesses through the establishment of a “first-class” supply chain that was capable of supplying other McDonald’s countries with products.

He said the company, which worked closely with its main suppliers, had significant capacity to grow in terms of meeting the potential demand for products from these countries.

“I know the economic times are trying now and results may not be where they are wanted, but brave businesses have ten-year strategies, despite short-term challenges.

“At this point in time we are building capacity for the future, but mainly for the future of this country. We believe we are most accountable for envisioned business growth by 2020 and currently have 216 restaurants, serving just under eight-million customers a month,” Solomon commented.

This year, McDonald’s South Africa intended to build between 20 and 30 new restaurants, with a strong focus on procuring local skills to build those restaurants, and it expected to grow its staff complement by 1 000 people year-on-year over the next five years.