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Staff Writer

How many burgers McDonald's needs to sell to cover its monthly rent at Green Point in Cape Town



The McDonald's in Green Point, Cape Town has recently renewed its lease, committing to a monthly rental of R420,000. This iconic 24-hour drive-thru, situated conveniently near the DHL Stadium, remains a staple for locals and visitors alike.


Mac meals, each priced at R87. This translates to about 1,207 meals per week or roughly 161 meals per day. Breaking it down further, McDonald's needs to sell around 6.67 Big Mac meals per hour to meet their rental expenses.


The lease agreement for the city-owned property, located at Erf 2188 on Fritz Sonnenberg Road, was recently put up for auction - in June.


The auction saw a competitive bidding war between fast-food giants McDonald's and KFC, both eager to secure the prime spot near the DHL Stadium, which hosts large scale sporting events with a capacity of 55,000 people.


McDonald's emerged victorious in this competitive auction, agreeing to the new rental amount of R420,000 per month to maintain their presence at the site.


LEASE AUCTION

  • Fast Food Restaurant Site

  • 5 Year Lease + 5 Year Renewal Option

  • Portion of Erf 2188Extent of lease area: 3131sqm

  • Zoning: General Business 1 (GB1)

  • Intended use: Fast Food Restaurant


The property has a storied history, reports the Atlantic Sun, originally leased to Flying High Restaurants (Pty) Ltd, operators of the Seagulls Restaurant, in July 1987 for a 25-year term with an option for a further four years and eleven months.



Following the liquidation of Flying High Restaurants in 2000, the lease was transferred to Newinvest 12 (Pty) Ltd.


This leaseholder exercised their renewal option, extending the lease until June 2017, and subsequently secured an additional extension until May 2020.


Currently, Newinvest 12 (Pty) Ltd sublets the premises to McDonald's, ensuring the fast-food giant can continue to serve the Green Point community around the clock.

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