Published: Fri, August 11, 2017
Medical | By Garry George

China will get 2000 more McDonald's restaurants in the next few years

China will get 2000 more McDonald's restaurants in the next few years

The new partnership becomes the largest McDonald's franchisee outside the US. "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 company plans to grow its number of outlets in China, which boasts the world's largest population, from 2,500 to 4,500 by 2022.

McDonald's sales took a hit in recent years as tensions over the South China Sea dented USA companies' earnings in China.

The deal won approval from regulatory authorities last week, delivering a 52% stake of McDonald's China and Hong Kong business to CITIC and a 28% stake to Carlyle.

Earlier in 2017, the fast food giant based in the USA agreed it would sell the majority of its business across China as well as Hong Kong to CITIC and Carlyle for the price of $2.1 billion. I have great confidence in our new partnership to unlock the full growth potential of China.

McDonald's told AP that about 45 percent of the new Chinese locations will be in smaller cities, and 75 percent of new sites will offer delivery service. "So, [delivery is] a very strong contributor to the business in Asia". In addition, it would launch a "digitalized and personalized" dining experience.

McDonald's will increase its locations in China close to twofold within five years, Reuters reports. In the conference call with analysts, Easterbrook said adoption of Experience of the Future was a factor in the selection of the franchisee partner.

With innovation hubs located in Hong Kong and Shanghai, McDonald's will strengthen its brand leadership by enhancing the customer experience using menu innovation and advanced digital retail experience.

McDonald's is betting that Chinese consumers are hungry for more.

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