Wendy's

November 2024

Wendy’s Expansion Strategy – South Africa

As part of a strategic consultancy group project, I contributed to a comprehensive market entry analysis for Wendy’s potential expansion into South Africa. Our objective was to assess whether the South African market offered a viable and sustainable growth opportunity for the U.S.-based fast-food chain.

We applied a range of strategic frameworks including PESTEL, Porter’s Five Forces, CAGE Distance Framework, SWOT Analysis, McKinsey 7S, and the Strategy Diamond to evaluate Wendy’s internal capabilities and external market conditions. Our research covered macroeconomic trends, legal and regulatory factors, competitive pressures, and consumer preferences across key urban centres.

My contribution focused on consumer behaviour research, demographic analysis, and market sizing within the QSR (quick-service restaurant) industry in South Africa. I also helped assess operational challenges and entry modes such as franchising, joint ventures, and acquisition opportunities.

Ultimately, the report recommended delaying expansion into South Africa due to infrastructure constraints, intense local competition, and a misalignment with Wendy’s premium brand positioning. We advised that Wendy’s prioritise expansion in European markets with more favourable conditions and higher brand affinity.