The rise of South Africa's quick service restaurant industry
Journal of Agribusiness in Developing and Emerging Economies
ISSN: 2044-0839
Article publication date: 26 October 2012
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
Citation
Maumbe, B. (2012), "The rise of South Africa's quick service restaurant industry", Journal of Agribusiness in Developing and Emerging Economies, Vol. 2 No. 2, pp. 147-166. https://doi.org/10.1108/20440831211272607
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited