Ramaphosa to run McDonalds SA

SHANDUKA chairperson Cyril Ramaphosa has been unveiled as the development licensee for McDonald's Corporation in South Africa

The new appointment makes Ramaphosa responsible for the operation of McDonald's restaurants in South Africa.

More than 50 of McDonald's 117 markets operate under the DL model, which has existed for more than 20 years. Unlike a conventional McDonald's franchisee, DL owns all the assets in the market, which includes owning and leasing the real estate (restaurants and office buildings).

Speaking during the announcement at McDonald's restaurant in Woodmead, Ramaphosa said it was a privilege and an honour to be associated with a global brand such as McDonald's.

"It's a recognition of what we have done as a group, as a company and our business. Apart from being a global brand, it (McDonald's) is a well-run and profitable business which also touches the lives of many people in our country.

"More importantly, through this developmental licence, McDonald's is really localising the ownership of its business. It is not exiting from South Africa but giving due recognition to the capability and the capacity of local business people such as myself and Shanduka to run and operate their brand," Ramaphosa said.

There are 145 McDonald's restaurants in SA, employing 7 500 people.

McDonald's has been in South Africa for 15 years, and 60percent of its restaurants are owned and operated by franchisees.

Ramaphosa said the negotiation process was lengthy, complex "but fruitful".

Dave Murphy, divisional president of McDonald's Asia-Pacific, Middle East and Africa, said with the DL, Ramaphosa was the controlling shareholder.

"There is no one in South Africa more qualified to get the DL than Cyril ... his experience, track record, values, and community involvement speak volumes," Murphy said.