McDonald’s Expands More New Restaurants in Asia
By Staff Writer
Apr 01, 2016 10:40 AM EDT
Apr 01, 2016 10:40 AM EDT
McDonald's announces on Thursday its plans of expanding its restaurant chain to Asia by adding more than 1,000 stores in China over the next five years making it the company's second largest market after the U.S. The American favorite fast food chain will build 250 outlets in Hong Kong and South Korea over the same period and seeks franchise partners in all three markets.
The company wagers on the population growth and urbanization rates will keep on propelling sales despite China's economic slowdown, according to Chief Executive Steve Easterbrook during an interview. He added that while bigger discretionary items are taking a hit amid the slowdown, little expenditures like fast food meals will remain strong, as reported by The Wall Street Journal.
Because Chinese consumers are becoming more health-conscious, McDonald's is serving healthy menu items such as apple slices, veggie cups and multi-grain muffins. The company guaranteed customers of its quality and has been winning customers.
"This will allow McDonald's to accelerate our growth and scale faster across diverse markets placing us closer to our customers 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."
Under the leadership of the new CEO who took the position in March 2015, Steve Easterbrook, McDonald's is doing a complete change and is trying to be optimistic.
He said last November that the company was committed to building a "global, well-diversified geographic footprint," after the firm conceded in a conference call last summer that results had stayed "disappointing" and was looking forward to improve customer satisfaction with new ways, CNBC reports.
The company also seeks strategic partners in Japan and Taiwan to build the company's competitiveness in these markets and cater to more local traditions.
McDonald's which has converted 470 company-owned restaurants to franchise last year and plans to franchise additional 95% of its outlets around the world in the long-term, says The New York Times.
McDonald's is expanding its fast food empire to Asia preferably in China, Hong Kong and South Korea, adding more than 1,000 stores in China alone. The company is confident that amid the economic slowdown, the food business will remain strong.
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