McDonald’s in an announcement revealed that it has plans to open 1,500 new restaurants in China, South Korea and Hong Kong as the markets seem promising. It also revealed that it is also searching for partners to help them in expanding their business.
The management has decided to give local managers more decision making power while conducting business with Asian customers.
McDonald’s CEO, Steve Easterbrook has taken up the responsibility of overhauling the business after it failed to keep up with the customers’ changing tastes. He reveals that the number of global diners visiting the McDonald’s fell sharply last year.
He further added that Asia held a significant area of opportunity where McDonald's could successfully blend their global standards with local insights and expertise from partners who share their vision and values. These would enable faster decision making and help achieving restaurant growth.
McDonald's currently has 2,800 restaurants in China, South Korea and Hong Kong where most of the outlets are owned by the company and not franchisees. The company defines them as high growth markets which has stronger potential for expansion and franchising.
McDonald's previously announced plans for identifying strategic partners in two other significant countries are Taiwan and Japan. They see huge potential to grow and expand in these countries.
In a strategic move in the Asian countries, McDonald's plans to turn over more company-owned outlets to local owners and has long terms goals of making 95% owned by franchisees.
McDonald's reported earlier that worldwide sales rose 5% at the established locations in the last quarter of 2015. In the high-growth markets unit, sales increased 3 % whereas in the U.S. sales rose 5.7 %. Britain and Canada witnessed a rise of 4.2 %.
Latest posts by CREHQ (see all)
- The Best Canadian Markets for Commercial Real Estate - April 11, 2018
- Map of 2018 Big-Box Store Closings - April 6, 2018
- Massive New $350 Million Park Set For Tulsa - September 20, 2017