By CultureBanx Team
- Burger King is planning to venture deeper into Africa
- The global fast food market grew 4.9% to $708B in 2017
Africa’s largest economy Nigeria is on Burger King’s global expansion radar. Restaurant Brands International (QSR -4.31%), which is the fast food chains parent company has been steadily looking outside of the U.S. for new growth areas. Is West Africa the right place for Burger King?
Why This Matters: There’s a good reason for the American company to venture deeper into international territory. The global fast food market grew 4.9% to $708 billion in 2017, according to Euromonitor. That is more than in the U.S. which was only up 3.8% to $247 billion.
The Whopper maker is one of many global companies drawn to Africa’s demographics, because the United Nations predicts that the world’s 10 fastest growing cities between 2018 and 2035 will be on the continent.
The global fast food market grew 4.9% to $708 billion in 2017
Pricing has already proven to be a bit tricky for Burger King in other countries on the continent. For example, on the companies Ghana Facebook page they advertise a burger, fries and coke for 15 Ghanaian cedis or $3.03. This price seems pretty steep when you consider the daily minimum wage in Ghana is about $1.80.
Burger King accounted for about two-thirds of RBI’s $8 billion of sales during the most recent quarter. Just 7,300 of the total 17,000 restaurants are in the U.S. with the remaining locations being international.
Situational Awareness: In Nigeria the company will face steep competition from fast food chains like Mr Biggs. This company already has 25% of the domestic market.
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