US burger chain Hardee’s to open 10 Nairobi outlets

American burger chain Hardee’s has announced plans to open 10 additional restaurants in Nairobi, including an outlet at the upcoming Two Rivers mall in December.

Hardee’s mid last month opened its first shop in sub-Saharan Africa at the Jomo Kenyatta International Airport.

CKE Restaurants Holdings, which owns the Hardee’s brand, says Kenya offered a perfect entry point to the region underlined by its geographical position and projected increased consumer spending on food and drinks.

“The airport was ideal to begin with as travellers identify with the brand and there is ready traffic. But it is limiting,” said Rohit Gambhir, general manager at Hardee’s Kenya.

“We now want to be in a mall and in other places where we’ll get to interact more with the locals and see what they want,” Mr Gambhir, an ex- KFC executive, told the Business Daily.

He declined to disclose the amount invested in setting up the Nairobi unit.

The Hardee’s JKIA outlet currently clocks between 200 and 250 guest checks daily, hospitality industry lingo for customer orders, some of which may be single or for groups.

The Nairobi unit has employed 45 workers, Mr Gambhir said, adding that it will hire a similar number for the Two Rivers outlet and other subsequent shops.

Hardee’s, known for its charbroiled burgers, currently has 37 restaurants in Egypt and operates a total of 3,711 stores in 39 markets globally.

California-based CKE Restaurants Holdings is the owner of Carl’s Jr brand, another burger chain, and acquired Hardee’s in 1997.

The 24-hour burger restaurant at JKIA has its menu priced in US dollars, with a daily applicable exchange rate to the local currency.

It also serves fries, soft drinks, beers, ice cream, and hot beverages such as coffee and tea.

Hardee’s is eying a location within Nairobi’s central business district for the third outlet planned to open in March next year.

Its entry to Kenya comes at a time when foreign restaurants and hotel chains have been jostling to set up shop in Nairobi, with some of the latest entrants being Burger King and Kentucky-based Pizza Hut.

READ: Nairobi's wealth attracts world's food chains

Growth in households’ disposable incomes, high economic growth, and a young population will see Kenyans splurge more on food and beverages, says a study by consulting firm McKinsey.

Suzan General Trading Ltd, which runs duty free shopping complexes and mini-hotels at airports and sea ports and is owned by Dubai-based businessman Arif Hafiz, is the franchise owner of Hardee’s in Kenya.

Mr Hafiz is currently in court battling Kenya Airports Authority over the agency’s move to re-tender for the development and maintenance of duty-free shops at JKIA, after tycoon Kamlesh Pattni gave up his tenancy at the airport and withdrew court cases he had filed against the airfields’ watchdog for demolishing his shops.

Hardee’s said supply chain hurdles remain the biggest challenge in running a global chain in Kenya, as they have to source for inputs that meet international standards in terms of quality and safety.

Mr Gambhir said Hardee’s is sourcing for vegetables locally but imports high-end Angus beef and bread from Egypt as it works with local firms Quality Meat Products and Ennsvalley Bakery to meet set standards.

“It took us more than six months to figure out the supply chain and open this outlet. We’re working with local firms to help them meet our requirements as a burger here should taste the same as in any other market,” he said.