New McDonald’s China offers vision of innovation
Deliveries and a digitalised, personalised dining experience are part of the “Vision 2022” strategy to be rolled out by the new owners of McDonald’s China and Hong Kong.
McDonald’s Corporation yesterday confirmed its strategic partnership with Citic, Citic Capital Partners and The Carlyle Group following China’s regulatory approval half a year after the deal was announced.
It is the largest McDonald’s franchisee outside of the US, covering existing businesses in Mainland China (about 2500 restaurants) and Hong Kong (about 240). Its development initiatives for China aim to drive double-digit sales growth in each of the next five years by almost doubling the number of restaurants to 4500 by the end of 2022.
There will also be delivery hubs for more than three-quarters of the restaurants, plus more than 90 per cent will offer the “Experience of the Future” concept, taking digitalised and personalised dining to more customers.
The opening pace of mainland restaurants is expected to progressively ramp up from about 250 this year to 500 a year by 2022. Vision 2022 includes plans to significantly grow the restaurant portfolio mix in tier-three to -four cities to about 45 per cent.
Innovation hubs in Hong Kong and Shanghai will introduce new menus and advanced digital retail experience.
“China will soon become our largest market outside of the US, and we are excited to join forces with Citic and Carlyle for better localised decision-making to meet changing customer demands in this dynamic market,” says McDonald’s Corporation president/CEO Steve Easterbrook. “China and Hong Kong are leading the global system in capturing new consumer trends such as delivery and digitalisation, and its driving strong performance and growth momentum.”
He says the corporation will continue to play an active part in the China growth journey through its remaining interest and participation on the China board.
“We believe this is a winning formula that fuses McDonald’s global standards and branding with Citic and Carlyle’s extensive resources and market expertise,” says new McDonald’s China board chairman Zhang Yichen.
McDonald’s has more than 37,000 locations in more than 100 countries. About 90 per cent of the restaurants worldwide are franchises.