“It ain’t easy bringing Africa the hamburger,” writes The Wall Street Journal (Dec.10, 2013). In the past year, Johnny Rockets in Nigeria opened its first retro diner on the continent, and Burger King cut the ribbon on the first of at least 200 restaurants it plans for South Africa and nearby countries. Next year, Hardee’s plans to build eateries in Nigeria and South Africa. Some of the burger world’s biggest names are introducing the American culinary classic to Africa’s expanding consumer class.
But that quest is straining a supply chain that is short on the refrigerated trucks and warehouses needed to keep patties and vegetable toppings fresh. And in many places, Africans are consuming beef at a faster clip than cattle ranchers can deliver new cows, meaning beef prices keep climbing. That is testing the limits of what the continent’s young urbanites can afford. For hamburger chains, the biggest problem is getting meat. From Nigeria to Namibia, slaughterhouses rely on local herdsman as a source of beef.
But herdsman come and go. That prompted Burger King to invest $5 million in a local cattle ranch that is gearing up to churn out 1.2 million Whopper patties a week. In Nigeria, meat supplier Chi Ltd. is one of several agribusinesses building ranches in anticipation of the new burger chains. The problem is, Nigerian cattle tend to be pretty scrawny. And the ideal burger source, the European brown cow, succumbs to tropical disease here.
Johnny Rockets’ final product is pricey. To give an authentic taste of the U.S., they fly in onions, mushrooms and iceberg lettuce. Burgers start at $14 for the Rocket Single, a lone patty topped with a Cheddar slice.
Classroom discussion questions:
1. Compare the supply chain problems in Africa to those of entering more developed countries.
2. Besides the food supply chain, what other obstacles do restaurant chains face in Africa?