Chinese fast food fans can look forward to more of the food they love in the next couple of years as McDonalds have announced a new business strategy that means they will be increasing the number of outlets in China. Plans have been announced that clearly set out a new business expansion strategy in China for the fast food chain. By the end of 2013 McDonalds are planning on having around 2000 Chinese stores.
McDonalds have announced a new business plan for China that involves a massive expansion. They plan on opening over 700 stores before 2013 (that’s a lot of stores!). Currently China has around 1300 McDonald’s stores so this new expansion means that McDonalds are obviously planning on taking the Chinese part of their business very seriously indeed.
McDonalds have been operating in China for many years but have not grown their business so dramatically until now. Financial experts are pointing to the reason for this being the new business opportunities that are coming out of a China that is becoming more westernised and it seems that McDonalds (as well as many other companies) are hoping to capitalise on this.
As well having a clear strategy for expanding their Chinese business, it also seems that the new announcement by McDonalds about their surge forward in China is also a defensive move to block rival fast food companies. The fast food business is enjoying very healthy growth at the moment and it looks as though one of McDonald’s closest competitors the Yum! Chain is fast on the heels of McDonalds.
Yum! Who own the KFC chain already have over 3000 outlets in China so it seems as though McDonalds have to play a quick game of catch up if they want to make the most of the new business coming out of China.