How mc.donalds run their business in chinaPresentation Transcript
How Mc.Donalds run their business in China? s1180100 Hiroki Sato
How Mc.DonaldsMc.Donalds is a fast food chain to expandon a global scale. And it has been amainstay burgers. Number of stores that ithas the shop 32737. It is the second largestin the world in the restaurant industryclassification in order of the number ofstores.
Mc.Donaldss history in ChinaWhen McDonald’s first opened in China in1990, these streets were clogged withbicycles. But prosperity has brought anexplosion in car ownership. However manyheadaches that may mean for Chinesedrivers, McDonald’s saw an opportunity?called drive-thru. The company opened thefirst drive-thru outlet in November, 2005 andSchwartz says it’s been “very, verysuccessful.”
McDonalds current in China(1)McDonalds now owns more than 1,400restaurants in China, which is thecompanys third-largest market.In 2011, the company set a new recordby opening 200 stores.It plans to open between 225 and 250 outlets in 2012.
McDonalds current in China(2)McDonalds (MCD -0.26%) has issued$900 million in debt at a record low coupon as it prepares to increase spending onnew restaurants and to refurbish existingrestaurants worldwide, with a greaterfocus in China.
McDonalds current in China(3)McDonalds currently trails Yum Brands(YUM +0.02%) in number of restaurantsin China and therefore plans to beef upits presence in the country. The bondissuance exemplifies the level of faith ofinvestors in the company and its strongfundamentals.
McDonalds in China as seen from the worldSome of the menu ideas developed inChina have been exported to other marketsaround the world. Take corn cup as anexample, it was invented by the McDonaldsChina research and development center andproved to be very popular due to its healthycontent and flavor and it has beenintroduced to other Asian marketplaces.
McDonalds as seen from the ChineseThats because Chinese consumers trustAmerican brands more than their own, saysShaun Rein, founder of China MarketResearch, who studies Chinese consumerbehavior. Rein says that in China,McDonalds is seen as providing safe andwholesome food.
Mc.Donalds plansThe company expects to incur anexpenditure of $2.9 billion in 2012, upalmost 10% from 2011, as it plans to addanother 1,300 restaurants worldwide andreimage its existing restaurants.