McDonald's, a household name in fast food, has become a global powerhouse thanks to its incredible service and mouthwatering offerings. But what about its presence in South Africa? Who's behind the success of this golden arch icon in the Rainbow Nation? Let me take you on a little journey to uncover the story.
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It's hard to believe that the American fast-food giant started as a humble barbecue stand. The first McDonald's opened its doors in South Africa back in November 1995, bringing its iconic burgers and fries to the local scene. Let’s dive deeper into its history and the people who’ve shaped its success in the Rainbow Nation.
Who owns McDonald's in South Africa?
McDonald's operates nearly 400 restaurants across nine of South Africa's provinces, according to their official website. Initially, local entrepreneurs were the ones who owned and ran individual restaurants under the franchise before Cyril Ramaphosa came into the picture.
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In 2011, McDonald's South Africa CEO Greg Solomon welcomed Ramaphosa's investment in the franchise. He expressed excitement about the partnership, saying:
This transaction is a transaction of growth. It’s all about acceleration. What more could you ask for in a partnership? You’ve got one of the world’s best brands and one of South Africa’s most inspiring leaders coming together to give this business a truly ‘glocal’ flavor. Our goal is to double the business in the next four to five years.
So, who owns McDonald's in South Africa now? The fast-food giant has seen two major ownership phases—first with Cyril Ramaphosa and then with MSA Holdings. It’s fascinating to see how the company’s ownership and performance have evolved over the years. Let’s break it down.
Cyril Ramaphosa (2011-2016)
In March 2011, Cyril Ramaphosa secured a 20-year exclusive right to operate McDonald's restaurants in South Africa. At that point, there were about 145 branches spread across the country. Ramaphosa, a renowned politician and businessman, promised to focus on customer satisfaction while also expanding and maximizing business opportunities through the franchise.
However, by 2016, Ramaphosa decided to part ways with McDonald's. According to News 24, he sold the franchise to avoid any potential conflicts of interest as he focused more on his role as Deputy President.
MSA Holdings (2016-date)
As of 2024, McDonald's in South Africa is owned by the United Arab Emirates (UAE)-based company, MSA Holdings. They acquired the franchise on September 20, 2016, for an undisclosed amount and have been running operations in the Rainbow Nation ever since.
Who is MSA Holdings owner?
MSA Holdings was founded by John Crosson and is headquartered in Buffalo, New York, United States. The financial giant was acquired by MB Financial Bank on December 31, 2015.
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Milestone under MSA Holdings
Under MSA Holdings, McDonald's has significantly expanded its footprint in South Africa. The company now competes fiercely with other fast-food giants like KFC and Chicken Licken. McDonald's employs over 12,000 people and serves more than 8 million customers in the country. Impressively, over 80% of all the food served in their restaurants is supplied and produced locally, ensuring quality and supporting South African businesses.
McDonald's franchise cost in South Africa
If you're thinking about owning a McDonald's in South Africa, you'll need some serious cash. According to SME South Africa, the cost to own and run the famous fast-food restaurant ranges between $230,000 and $345,000.
McDonald's background
McDonald's got its start in 1940 in San Bernardino, California, when brothers Maurice (Mac) and Richard McDonald opened a drive-through barbecue restaurant. Their menu featured burgers and milkshakes. It wasn't until 1954 that they partnered with Ray Kroc, a milkshake machine salesman, to expand their operations. Kroc bought the company outright in 1961, transforming it into the multi-billion-dollar empire we know today.
When asked about selling the franchise, Richard McDonald expressed no regrets, saying:
Taxes were killing us. We weren't kids anymore. We had three homes and a garage full of Cadillacs, and we didn't owe a dime to anyone. ... I have no regrets. Yachts on the Riviera were not my style at all.
What did Ray Kroc pay for McDonald's?
Ray Kroc paid Maurice and Richard $2.7 million to acquire McDonald's in 1961. Since then, the company has grown exponentially, establishing over 36,000 restaurants in more than 100 countries worldwide.
Who is the CEO of all McDonald's?
Christopher John Kempczinski has been serving as the CEO of McDonald's since his appointment in November 2019.
Who is the actual owner of McDonald's?
McDonald's is owned by a variety of shareholders around the world. The Vanguard Group, Inc. holds the largest stake with 8.81%, as reported by Business Model Analyst. Here's a breakdown of the six key shareholders and their estimated shares:
| Company | Shares |
| The Vanguard Group, Inc. | 8.81% |
