McDonald’s Plans to Open Over 1,500 Restaurants in China, Hong Kong and Korea Over Next Five Years
01 Apr 2016 --- McDonald’s is planning to open more than 1,500 restaurants in China, Hong Kong and Korea over the next five years and is looking to work with partners to grow its business in Asia, the US fast food giant has announced.
The plan forms part of a strategy shift, which also includes giving more power to local McDonald’s restaurant managers in Asia, spearheaded by chief executive Steve Easterbrook, who has earmarked an improved performance in Asia as crucial.
Easterbrook said: “Asia represents a significant area of opportunity for McDonald’s to blend our global quality standards with local insights and expertise from partners who share our vision and values.”
“This will allow McDonalds’s to accelerate our growth and scale faster across diverse markets placing us closer to our costumer and the communities we serve. We’re in the midst of transforming our business and taking a strategic and thoughtful approach to enhance our ability to grow around the world.”
“These actions build on our turnaround efforts and will advance local ownership, enable faster decision-making and achieve restaurant growth.”
Currently, McDonald’s has over 2,800 restaurants in China, South Korean and Hong Kong, which it has deemed “high-growth” markets.
Other high-growth markets include Russia.
It plans to open 1,000 restaurants in China, which would mean that China would be McDonald’s biggest market outside the US.
McDonald’s has been facing heightened competition from local rivals in China, who have been pinching market share from it.
It also plans to open 250 restaurants in both Hong Kong and Korea.
The majority of McDonald’s restaurants in Asia are owned by the fast food company.
But it now plans for 95 percent of these restaurants to be franchised, as it believes local ownership will be more in-tune with changing consumer trends.
McDonald’s has previously announced that it is looking for strategic partners in Taiwan and Japan.
