McDo looks forward to 64

Golden Arches Development Corp. (GADC), which has held the franchise to operate the McDonald’s brand in the Philippines for the past 44 years, is now looking to expand and grow the American restaurant in the country for another 20 years, with GADC president and CEO Kenneth Yang (who is turning 60) taking a more public role even as his father, GADC chairman and founder George Yang enjoys a more relaxed role at 86 years “young.”

George, Kenneth reveals, continues to coach him and still goes to the office everyday, “something that will never change” if his father can help it. Kenneth and his team regularly consult and update George, who shares his wisdom and past experiences. This helps Kenneth and the rest of the management team deal with any situation that they encounter.

George, in fact, last Friday appeared ready to dance up a storm in his blue suede shoes and snazzy suit, with the trademark red and yellow McDonald’s shirt, as GADC formally announced the renewal of its franchise agreement with Chicago-based McDonald’s Corp.

However, George showed that he is ready to relinquish the limelight to Kenneth who took center stage – alongside host and former McDonald’s crew member Rico Hizon – in announcing, during a simulcast livestream and press conference, the 20-year franchise renewal to media guests in Quezon City, Cebu and Davao.

It was refreshing and indeed a proud moment for George to sit quietly and allow Kenneth to take a more public role after Kenneth has most capably steered the company behind the scenes since 2005 while leaving most of the public events and hosting, and promotion to his father who is also well-known for his singing prowess, and even has a couple of CD records that he has given to family and friends.

While I thought George was ready to dance with his blue suede shoes that Friday, I learned that it is Kenneth who actually likes to dance with his wife, leaving the entertainment and singing to his father.

Under the multi-unit franchise agreement, GADC would continue with the license to own, develop and operate restaurants and engage in the sub-franchising of restaurants under the McDonald’s brand until 2045. Part of the 20 year franchise renewal, Kenneth revealed to reporters, would be to open more branches nationwide after putting up 65 new branches last year and bringing the total to 792 branches as of 2024.

Of the 792 existing branches, Kenneth said that about 55 percent are company-owned, while about 45 percent are franchise-owned by other parties. GADC is planning to continue expanding and will hopefully hit the 1,000th store benchmark “soon.”

“Malapit na yan, iimbitahin ko kayo (That will be soon, I will invite you then), “he bantered with reporters, admitting that it could be achieved in as quick as two years.

However, the expansion would no longer be in the National Capital Region or NCR, but would be scattered all over the country in major cities in Luzon, Visayas and Mindanao where there is growth and expansion. “That is where we will go,” Kenneth said.

GADC spends around P60 million to P70 million to open new restaurants. However, he explained, the company also spends to renovate or update existing branches. Thus, the company’s capital expenditures reached around P5 billion to P6 billion last year.

In the next 20 years, Kenneth is optimistic that the McDonald’s store network will grow much faster than the almost 800 branches that it has put up so far.

Even as GADC continues to plan for further expansion, it is mindful of the need to keep its operations sustainable and also contribute to the local community, according to Kenneth.

In renovating or upgrading its older branches, Kenneth points out that they adhere to sustainable practices and therefore recycle and repurpose some of their tables and chairs into classroom chairs and tables that they donate to schools and charitable organizations.

McDonald’s, Kenneth added, also actively works with the local government units and barangays where their restaurants are located to extend training and employment to out-of-school kids and even to senior citizens on a part-time basis.

Succession training, on the other hand, Kenneth said is still a work in progress as he wants his children to gain outside training and experience in other businesses first before bringing them into the family business. He admits that as he nears 60, he is thinking that he will have to bring in his children soon to the family business.

Kenneth, however, started quite young in his own succession training at 16 years of age in 1981, with his father bringing him along to train in McDonald’s Hong Kong franchise branch to prove their determination to secure the McDonald’s franchise for the Philippines. He, along with Rico Hizon, were actually part of the first crew of McDonald’s Morayta, the first branch of the restaurant in the Philippines.

Kenneth reveals that he did all of the training from cleaning the floors and toilets, cooking the burgers and fries and serving customers. Kenneth and Rico both revealed that their experience as the first crew of McDonald’s Morayta helped them overcome their introverted personality.

Kenneth admits that he is very much a family man like his father, enjoying the company of his wife and children and traveling abroad. He also clearly likes to keep fit and visits the gym three times a week, pumping iron for his well-toned and muscular biceps at nearly 60, with a lean and trim physique. He also plays golf once a week at Manila Golf.