McDonald’s sets P500-M expansion this year

US fastfood giant McDonald’s Corp. has set aside P500 million this year for the establishment of 20 new stores in and outside Metro Manila as well as the refurbishment of existing facilities.

McDonald’s Phils. managing director Kenneth Yang said the company hopes to penetrate Visayas and Mindanao as part of efforts to tap a wider clientele. He said the company will open by the end of this month its first store in Zamboanga.

"We are definitely expanding our network. We want to be accessible to our customers," he said.

Yang said the new stores would consist of company-owned and franchised outlets. Each store is estimated to cost P25 million and will be funded by internally-generated cash.

Last year, McDonald’s had a total of 242 stores compared with main rival Jollibee Corp.’s 988 stores.

Yang said the company performed well last year, bolstered by the increase in food purchases during political campaigns. "We had a great year last year. We posted double-digit growth and hope we would continue that trend," he said.

The Philippines is one of the rare countries worldwide whose homegrown fastfood retailer has bested the McDonald’s franchise holder. The rivalry between McDonald’s and Jollibee has been heated over the years, battling for consumer loyalty by outdoing each other in celebrity endorsements, value-meals, and promotional toys.

Yang said McDonald’s would also continue to expand McCafe, its coffeeshop retail business. There are over 300 McCafe stores worldwide, including Australia, Hong Kong, Japan, Taipei and the United States.

McCafe serves cinnamon, brownies, cheesecake, blackforest and other similar pastries readily available with coffee favorites such as cappuccino, latte, mocha or espresso.

In an unprecedented customer service initiative, McDonald’s has teamed up with Banco De Oro, the banking concern of retail tycoon Henry Sy, to provide banking convenience to the public while enjoying their favorite meals at McDonald’s.

Under the agreement signed yesterday, BDO will install ATMs in selected McDonald’s outlets with the first two already set up in Greenbelt and Katipunan. Another ATM will be installed in Eastwood, Libis soon.

"We welcome this opportunity to partner with Banco de Oro to provide not only fastfood but also fast cash right to where our customers are at any given time," Yang said.

McDonald’s remained as the world’s top quick service restaurant with more than 33,000 branches in more than 120 countries.