It’s hard to believe that it’s been almost five years since snaking queues heralded the opening of SA’s first Burger King store by Grand Parade Investments (GPI). With R680m having already been spent on building the fast-food chain, profitability could be imminent. The magic breakeven figure is about 80 stores. There are now 71, with 10 having been opened in GPI’s six months to December. "We will be at 82-83 stores by the end of June," says GPI executive chairman Hassen Adams. "By the end of 2018 there should be about 100." The stores, all corporate owned, come with price tags of about R6m for a drive-through and R5m for a conventional store. GPI values Burger King at R827.6m. Burger King came close to breakeven in GPI’s latest interim period, delivering a headline loss of R5.7m, down R2.6m (32%) from the same period in 2016. Sales performance was solid, lifting 15% to R317.6m, with like-for-like store sales up 4.5%. Adams is enthusiastic about Burger King’s prospects. "With 100 sto...
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