The rise of South Africa's quick service restaurant industry

Blessing Maumbe

Journal of Agribusiness in Developing and Emerging Economies, 2012, vol. 2, issue 2, 147-166

Abstract: Purpose - The purpose of this paper is to describe the rise of South Africa's quick service restaurant (QSR) industry by examining the structural changes and competitive strategies driving the industry. Design/methodology/approach - The paper uses Michael Porter's Five Forces and secondary data to describe the structural reorganization of South Africa's QSR industry and market positioning strategies being used to respond to the growing industry competition and global challenges. Findings - The paper finds that South Africa's QSR industry has risen tremendously and has expanded globally. The evolving fast food market comprises South African franchises and multi‐national franchise corporations co‐existing with modern supermarkets, contract food caterers, and informal traders. The industry uses a mix of market coordination, operational and competitive strategies to counter the intense global competition. Further research is needed to examine the potential of information communication technologies in QSR industry market coordination and consumer willingness to pay for increased convenience, healthy products, sustainability, and food traceability. Practical implications - South Africa leads the continent in mobile phone penetration and there is scope for QSR managers to integrate mobile commerce when dealing with QSR industry customers and other stakeholders. South Africa's fast food franchises should craft strategies that adapt menus to local cultures and ethnic foods in other countries. With increasing attention on food safety and traceability, South Africa's QSR firms could provide leadership in marketing high quality food and gain competitive advantages through positive industry image. Originality/value - The paper addresses the highly topical issue of rising competition in the fast food industry and successful strategies being utilized by South African firms to penetrate both regional and global markets.

Keywords: South Africa; Industry; Market; Competitive; Strategies; Fast foods (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jadeep:v:2:y:2012:i:2:p:147-166

DOI: 10.1108/20440831211272607

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