McDonald's SA eyes 8 million customers in December

Analysts predict that South African consumers will shy away from splurging on big-ticket items this Christmas, opting instead for bargain-buys and spending on durable goods like clothing and food.

Consumer sentiment has been dampened by trepidation over the effect Europe's debt crisis will have on the local economy. Local debt levels are also at historic highs.

According to McDonald's SA's MD, Greg Solomon, times are tough.

"The economic challenges are there - you can definitely feel it in the market," he told I-Net Bridge/BusinessLIVE on Tuesday.

The restaurant chain, known for its Big Macs and McMuffins touts the festive season as a "massive" trading period.

"December revenues can be just over 50% over those of a normal month. We really gear up for the season. It's all hands on deck - out of the boardrooms and into the restaurants," Solomon said.

In June, McDonald's SA shifted from a franchise structure to Cyril Ramaphosa, backed by Shanduka Group, becoming the master franchisee.

Under this structure, Shanduka has a master franchise licence for 20 years to run and operate the entire business - which consists of a 60/40 split between franchises and wholly owned businesses.

The company has ambitious plans to double its footprint over the next five years, as it takes its famous burgers and shakes to urban areas and smaller towns.

McDonald's SA will open between 20 and 30 new outlets in 2012.