Yesterday the CEO of fast food chain McDonald's, Steve Easterbrook said that the company plans in the next five years to open 1.5 thousand new restaurants in China, Hong Kong and South Korea. If these plans are implemented, the number of McDonald's establishments in these countries will grow by 54% - from the current 2.8 thousand to 4.3 thousand. Now the share of McDonald's establishments in these countries is 7.8% of the entire network.
One of the goals of McDonald's - to make the Chinese market is the second largest, it is now ranked third after the US and Japan. Earlier, the corporation has already reported that during 2016 it plans to open 250 new restaurants in China. Now China is working 2.2 thousand McDonald's restaurants. According to the plan the number is expected to grow by 1.3 thousand. According to Mr. Easterbrook, McDonald's relies on the fact that the growth of China's population and the level of urbanization will increase the sales, despite the slowdown in the Chinese economy. McDonald's, along with the bank Morgan Stanley is looking for local partners who could take part in the expansion of the network. McDonald's is going to open these institutions under a franchise agreement, the corporation hopes to translate this scheme all of its Chinese restaurants.
One of the main competitors McDonald's in the Chinese market is the company Yum Brands, which owns such fast food restaurants like KFC, Pizza Hut and Taco Bell. Starbucks plans to open 500 new restaurants in China in next five years. In 2014, McDonald's along with KFC was at the center of the scandal - the Chinese authorities have launched an investigation in connection with the advent of the information that a network of fast food can be used expired meat. It turned out that one of the suppliers of the companies - Shanghai Husi Food - changed the expiration dates on the packaging of the goods. After the scandal McDonald's sales in China decreased. Serious competition to Western fast food networks are local players. According to the McKinsey consulting company, in a survey of 10 thousand Chinese consumers found that only 51% of them used the Western fast food in 2015, in 2012 this figure was higher - 67%. According to forecasts of the research to Euromonitor, sales of fast food in China to exceed $1 trillion in 2018, they exceeded $800 billion in 2015.
More relevant news you can find here www.cityfalcon.com/watchlists?assets=MCD
One of the goals of McDonald's - to make the Chinese market is the second largest, it is now ranked third after the US and Japan. Earlier, the corporation has already reported that during 2016 it plans to open 250 new restaurants in China. Now China is working 2.2 thousand McDonald's restaurants. According to the plan the number is expected to grow by 1.3 thousand. According to Mr. Easterbrook, McDonald's relies on the fact that the growth of China's population and the level of urbanization will increase the sales, despite the slowdown in the Chinese economy. McDonald's, along with the bank Morgan Stanley is looking for local partners who could take part in the expansion of the network. McDonald's is going to open these institutions under a franchise agreement, the corporation hopes to translate this scheme all of its Chinese restaurants.
One of the main competitors McDonald's in the Chinese market is the company Yum Brands, which owns such fast food restaurants like KFC, Pizza Hut and Taco Bell. Starbucks plans to open 500 new restaurants in China in next five years. In 2014, McDonald's along with KFC was at the center of the scandal - the Chinese authorities have launched an investigation in connection with the advent of the information that a network of fast food can be used expired meat. It turned out that one of the suppliers of the companies - Shanghai Husi Food - changed the expiration dates on the packaging of the goods. After the scandal McDonald's sales in China decreased. Serious competition to Western fast food networks are local players. According to the McKinsey consulting company, in a survey of 10 thousand Chinese consumers found that only 51% of them used the Western fast food in 2015, in 2012 this figure was higher - 67%. According to forecasts of the research to Euromonitor, sales of fast food in China to exceed $1 trillion in 2018, they exceeded $800 billion in 2015.
More relevant news you can find here www.cityfalcon.com/watchlists?assets=MCD
