McDonald's restaurant in Pinetown, Durban. Picture: Bongani Mbatha/Independent Newspapers
The CEO of McDonald’s South Africa, Greg Solomon, has mutually parted ways with the fast food giant after 15 years at the helm and as it seeks new leadership amid stiff local competition.
The leadership change also comes as the global fast-food giant faces its first sales decline in three years.
Daniel Padiachy, the chief marketing officer of McDonald’s South Africa, said in a statement on Friday, “After 29 wonderful years with McDonald's South Africa, including 15 years as CEO of McDonald’s South Africa, Greg Solomon and the company have mutually agreed that now is the right time for him to step down.”
The statement said leadership changes are natural for any organisation and while Solomon has built a strong foundation that has been established, “now is the time to welcome new leadership”.
Padiachy said, “Greg has guided the company through both its most successful milestones and its greatest challenges. Over the past 15 years as CEO, he has spearheaded the addition of 230 new restaurants resulting in a total portfolio of over 400 restaurants. Under his leadership, the brand has grown significantly, becoming stronger, more resilient, and deeply rooted in our community.”
Solomon will still remain involved on the brand as a Board member, ensuring continuity, sharing his invaluable knowledge, and fulfilling his responsibilities as a company director, he said.
“His presence during the next six months as the CEO of McDonald’s South Africa will help facilitate a seamless transition for the incoming CEO, our employees, franchisees, our crew, and customers,” Padiachy further said.
While there has been unconfirmed reports that Solomon has been asked to step down amid a loss of market share, McDonald’s South Africa did not respond to the allegation.
Instead they sent the impressive track record and milestones of Solomon, which shows:
Facts about McDonald’s South Africa under Solomon’s leadership:
1. McDonald’s South Africa has been awarded “Top Employer status in South Africa for the last two consecutive years by the Global Top Employer Institute.
2. In 2024, McDonald’s South Africa was awarded No 2 spot in the “Best Place to Work – Large Business Category” by the Sunday Times.
3. Across its base of 15 000 employees, 99% are black South Africans.
4. McDonald’s South Africa has been awarded the Coolest Brand by The Sunday Times GenNxt awards for the last 11 consecutive years.
5. McDonald’s South Africa was awarded 2nd place for the Coolest Coffee Shop at the Sunday Times GenNxt awards in 2024.
6. McDonald’s South Africa has added 230 new restaurants and grown to a current portfolio of 402 restaurants.
Milestones under Solomon’s leadership:
– 2010 – Introduced sustainable packaging in South Africa, reinforcing
McDonald’s commitment to environmental responsibility.
– 2012 – Brought Ronald McDonald House Charities (RMHC) to South Africa,
providing support to children who cannot afford specialised medical care and
hospitalisation.
– 2013 – Pioneered the first light steel restaurant build, enhancing efficiency
and sustainability in construction.
– 2014 – Achieved a milestone of serving over 8 million customers per month
across South Africa.
– 2015 – Implemented environmentally friendly lighting, reducing the
company’s carbon footprint.
– 2016 – Introduced McDelivery, making McDonald's a frontrunner in delivery
services well before it became a necessity during the COVID-19 pandemic.
– 2018 – Launched the local McDonald’s App, enhancing customer convenience
and digital engagement.
– 2019 – Established Hamburger University, McDonald’s very own training
institution, developing future leaders in the industry.
– 2024 – Formed a CATHSSETA partnership to address youth unemployment
through skills development and job opportunities.
– 2024 – Reached a workforce of 15 000+ employees, reinforcing McDonald's
role as a key employer in South Africa.
McDonald’s global and local challenges
McDonald’s on Monday reported that its sales fell globally for first time in more than three years.
Reuters reported that McDonald's surprise drop in sales worldwide on Monday was its first decline in 13 quarters as deal-seeking consumers shied away from higher priced menu items, including Big Macs.
Global comparable sales fell 1% in the second quarter, compared with expectations of a 0.5% increase. Overall revenue rose 1%.
Companies like McDonald's and Starbucks have also suffered from consumer boycotts linked to the Gaza war, which hit their sales in the Middle East markets, Reuters also reported.
Meanwhile, McDonald’s in South Africa faces a particularly tough challenge for market share as research shows consumers favour chicken fast food outlets unlike its global peers.
Business Tech reported recently that while McDonald’s continues to sport market dominance globally, South Africa’s largest fast food franchises tell a different story with Yum! Brands’ KFC holding one-quarter of the fast food market by sales in the country with McDonald’s lower in the rankings.
BUSINESS REPORT