McDonald's plans China expansion

Updated: 2012-02-28 21:27

By LI WOKE (CHINA DAILY)

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SHANGHAI — McDonald's Corp, the world’s biggest restaurant chain, said on Tuesday that half of this year’s new outlets will be drive-through.

The company plans to open a record 225 to 250 outlets this year, after making a commitment to increase investment by 50 percent last year, said McDonald’s China Chief Executive Officer Kenneth Chan, without disclosing the financial details of the investment.

"In 2012, I will add more than 100 dessert kiosks, and operate 600 McDelivery hubs with online ordering. Around 40 percent of the new stores openings will be drive-through," said Chan.

"Drive-through is one of the fastest-growing businesses." After entering China by opening its first restaurant in Shenzhen in 1990, the fast-food giant has seen rapid development in the country. In 2011, McDonald’s opened a record 200 new outlets in the country.

It now has more than 1,400 restaurants in 26 provinces, autonomous regions and municipalities on the Chinese mainland and aims to expand that network to more than 2,000 outlets by 2013.

McDonald's lags behind its rival Yum Brands Inc in opening outlets in China. Yum has opened about 4,500 restaurants under brands including KFC, Pizza Hut, East Dawning and the recently acquired Little Sheep.

McDonald's fast expansion relies heavily on franchises. Besides the traditional licensing, last year, McDonald's China announced that it had issued its first developmental license in Yunnan province to a mainland business in a move to further expand its presence in the world's second-largest economy.