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McDonald's opening local 'Eatery' with Chinese elements
FAST-FOOD chain McDonald's is taking a further step to localize its service, unveiling its first "Eatery" restaurant in Shanghai with traditional Chinese interior decorating elements.
In April, the first "Eatery" store in China was opened in Guangzhou. The move will soon extend into other first-tier cities, as the company hopes to lure more consumers through localized decoration and furnishing style and target not only teenagers but also young couples and families.
McDonalds Shanghai general manager Wu Hui said at a media briefing over the weekend that the city will soon have the first batch of franchised McDonalds restaurants as the US company seeks to speed up expansion in one of the world's fastest-growing economies.
By the end of last year, McDonald's had 46 local franchisers, mostly in second-tier cities. About 12 percent of its eateries in China's mainland are operated by franchisers, a very low level compared with 80 percent worldwide.
McDonalds's aims to increase franchises to 20 to 25 percent of its restaurants throughout China by 2015.
"Adding the number of franchised restaurants in China can speed up our new restaurant openings and also reflects our long-term strategy, that is to ensure faster and better expansion in China," Wu said.
McDonalds last year opened 275 new restaurants nationwide and plans to add 300 more this year.
In the fourth quarter of last year, McDonald's comparable sales in the Asia Pacific, Middle East and Africa declined 2.4 percent, due to flat performance in China and Australia. The company had said it's focused on accelerating growth across all sectors, including new restaurant openings and by making more locally relevant menu items.
McDonalds restaurants in China reached 2,000 in April this year, making it the third-largest market worldwide. Still, rival KFC more than doubles that number with more than 4,600 eateries in China.
Both fast-food chains has been offering localized products and service to expand their market share.
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