McDonald's SA CEO on doing business under lock-down & the future of fast food industry

Greg Solomon, the CEO of McDonald's South Africa, recently discussed the impact of COVID-19 on the fast-food industry and the operations of McDonald's during a CNBC Africa interview. Since the implementation of level three lockdown restrictions, McDonald's South Africa has been able to operate its drive-through and delivery services. Solomon mentioned that during level four lockdown, delivery services were initiated, and in level three, drive-through services were introduced. The company is hopeful for the reopening of seating areas in the near future. Currently, drive-through services play a significant role in McDonald's revenue, accounting for over 70% of their total sales. Even though 90% of McDonald's restaurants are open nationwide, they are not yet operating at full capacity due to the limitations on service options. Solomon expressed satisfaction with the sales performance through drive-through and mentioned the goal of reaching 80% of normal revenue by the end of the month. He emphasized the importance of drive-through as a secure form of contactless food delivery. Despite the success in drive-through sales, Solomon acknowledged the challenges faced during the lockdown period. He stated that it will take at least 12 to 18 months for the business to recover and regain the liquidity levels enjoyed before the pandemic. As the fast-food industry navigates the impacts of COVID-19, McDonald's South Africa is prepared to adapt to the changing consumer behaviors and safety regulations. Solomon highlighted the cultural significance of dining out and socializing for customers, expressing confidence that these activities will eventually return. However, in the current circumstances, customers are limited to drive-through or delivery options. As the company looks forward to reopening seating areas, they are committed to implementing social distancing measures, hand sanitization protocols, and ensuring a safe interaction between customers and staff. The impact of the pandemic on sales and business operations has been substantial, and McDonald's South Africa is focused on overcoming the challenges and rebuilding the business to pre-pandemic levels. Despite the hurdles faced during the lockdown, the company remains optimistic about the future of the fast-food industry and is dedicated to providing quality service to customers across the country.