McDonald's takes bigger bite in China
(China Daily)
Updated: 2005-03-28 08:56

McDonald's, the world's largest fast food provider, aims to open more than 100 new outlets in the Chinese mainland this year.

Tim Lai, senior vice-president of McDonald's (China) Co Ltd, told China Daily last week that the company's performance in China is running parallel with expectations and is developing steadily.

"We will go anywhere, the key cities, the second-tier cities or middle and western regions, so long as demand exists," said Lai.

"But the most important prerequisite for our expansion is convenient logistics, which can guarantee that our food and raw materials are transported as fresh and safe as we require."

McDonald's is also planning to further expand its franchise business in the country.

Its first franchise outlet was opened in Tianjin last year, and has since posted good figures.

"A batch of franchise restaurants are expected to be launched in coming months," said Lai, but declined to disclose their locations.

The vice-president pointed out that McDonald's China is a localized company in terms of sourcing and product development.

Ninety-five per cent of the raw materials used by McDonald's is purchased from local farms and Chinese-styled food catering to local tastes has been promoted in recent years.

On March 8, McDonald's debuted its new campaign - "It's what I eat and what I do. I'm lovin' it" - in New York. The slogan landed in China last Wednesday.

According to Lai, McDonald's will create new packaging with tips for healthy eating and also enlist Olympic athletes such as Yao Ming and Guo Jingjing to promote nutrition, exercise and an active lifestyle.

"McDonald's will diversify the menu to offer more choices to consumers and call for a balanced life," said Lai.

Insiders say McDonald's is working hard to improve its image, and shake off the perception that it only offers poor quality food.

The company is facing a lawsuit brought by New York teenagers who claim it hid the health risks of items including Chicken McNuggets and that the chain's food made them obese.

Lai reiterated that McDonald's has long been dedicated to offering each customer safe and fresh food.

"Quality and heath are at the forefront of our minds," he said.

The company has more than 31,500 locations in 119 countries and regions and receives over 50 million customers every day.

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