By Moses Kaketo
When Pizza Hut launched the first restaurant in May 2016 at the Village Mall in Bugolobi, in the first two hours, the outlet received more than 90 customers.
That was phenomenal. Ugandans continued to flock to the outlet thanks to the quality of service and the Pizza served.
This encouraged management to open more outlets in Entebbe and Kisementi, Kamwokya. Reports indicate the Fast food’s giant plans to open more outlets this year as demand continues to surge.
Market intelligence reports indicate Pizza Hut Bugolobi outlet is presently the best in East and Central Africa in terms of sales and revenue.
The multinational Food chain operates in over 100 countries globally, including Kenya and Tanzania in Africa.
Reports further reveal, Pizza Hut’s sister company- Kentucky Fried Chicken (KFC) Bukoto outlet [a drive through] is also leads in East and Central Africa serving more than 1,000 customers a month.
Analysts attribute the rising demand for Fast Food in Uganda to the growing middle class, more single corporate Ugandans, a growing number of foreigners living and working in Uganda. Above all, the more Uganda’s who have travelled abroad and tasted quality fast-food out there.
Two years later, KFC Uganda has more than six branches and growing. The latest additional is KFC Kireka. Never mind that Nando’s owned by seasoned businessman Amos Mzeyi had to jump out of the flying pan-it was too hot for them.
That’s not the news.
Highly placed sources told Newz Post that global Fast-food firm Domino Pizza has wrapped up plans to enter the Ugandan market. Sources within the industry say, Domino Pizza was impressed by Pizza Hut and KFC success story.
Domino Pizza is anticipated to launch in Uganda not later than June 2017.
Domino Pizza is already present in five African countries including Egypt, Kenya, Morocco, Nigeria and South Africa. Uganda will be the 6th country.
Last year, Domino’s Pizza Enterprises Limited upgraded its Full Year 2017 (FY17) profit forecast and growth outlook, underpinned by increasing same store sales results and improving margins.
The Company upgraded EBITDA growth to be in the region of +30% (up from +25%) compared to the previous underlying result. It also reconfirmed underlying NPAT growth at +30%, following same store sales results at or above expected levels in all seven regions.
Domino Pizza success is a result of focus on quality and technology. The company is using technology to order delivery and carry-out orders.
‘‘Our goal is to be at the forefront of this trend through innovations such as our Zero Click app, On-Time Cooking and DRU. This includes our popular Offers App, which we have updated to make it easier to use and to allow food visuals and video to help showcase our products.’’ Says company CEO and Managing Director Don Meij
The coming of Domino Pizza to Uganda is expected to attract other global fast-food players who are already present in neighboring Kenya including: Chicken Inn and Hardee among others.
According to latest McKinsey & Co study, the global Fast Food’s players are turning to emerging markets including Africa are attracted by rising disposable household incomes, fast economic growth and a young population.
“Uganda’s growing middle class has provided an opportunity for investment in the restaurant industry. We have invested heavily in the business with an aim to be here for generations. ” said Ted Pantone, Managing Director Pizza Hut Uganda at the launch of Pizza Hut Out in Bugolobi.
As competition increases in the fast food industry, the winner is the customer.
However, the question we should ask ourselves is whether Ugandans are directly benefiting from the coming these global brands.
Reports indicate these firms import nearly everything they use, including cooking oil, chicken, sweet potatoes, etc. Besides, they are slowly and gradually pushing out the local fast-food players. Is this good for the economy in the long-term?
More about the author. Moses Kaketo