McDonald's to nearly double presence in China by opening 2000 new restaurants

  • McDonald's to nearly double presence in China by opening 2000 new restaurants

McDonald's to nearly double presence in China by opening 2000 new restaurants

The opening pace of new McDonald's restaurants in mainland China is expected to progressively ramp up from around 250 per year in 2017 to 500 per year in 2022, from 2,500 to 4,500 restaurants in total, including delivery services offered from over 75 per cent of those.

The burger chain giant said it was aiming to open more of its restaurants in cities in China that are lower-tier, boost its capacity for delivery and introduce a personalized and digitalized dining experiences to more customers in China. The company expects that 45 percent of its China restaurants to be located in those cities by the end of 2020.

The new partnership, jointly established by CITIC Ltd, CITIC Capital, Carlyle Capital and McDonald's, paid $2.08 billion for the US-based fast food chain's business in the Chinese mainland and Hong Kong.

McDonald's CEO Steve Easterbrook said that China will soon be the largest market beside the US and the company is excited to be joining forces with Carlyle and CITIC for better decision making at the local level to meet the constantly changing demands of customers.

KFC's wide presence in China appears to have bolstered the confidence of McDonald's investors in the new expansion plan, industry insiders said. "McDonald's Corporation will continue to play an active part in the China growth journey through our remaining interest and participation on the China Board".

The sale to the new McDonald's China franchisee includes McDonald's existing businesses in Mainland China (approximately 2,500 restaurants) and Hong Kong (approximately 240 restaurants). "So, [delivery is] a very strong contributor to the business in Asia".

McDonald's will increase its locations in China close to twofold within five years, Reuters reports.

"...they absolutely shared our appetite to transform the McDonald's experience and the brands". "I'll give you just one anecdotal piece of evidence of that. So, you can see how the Chinese consumer actually embraces the technology and experience".