McDonald's plans to accelerate China business

 
May 17, 2013

Despite the supply chain drama that has befallen Yum! Brands in China this year, McDonald's has plans for an aggressive expansion in the market.

Bloomberg reports that the Golden Arches expects to hire about 75,000 new employees in China this year to support its store expansion. The chain currently employs more than 90,000 people there.

The hiring will support the company's plans to increase its system to 2,000 restaurants on the mainland, from about 1,700 currently. Last year, McDonald's opened 256 restaurants in China.

New positions will focus heavily on McCafe outlets, which will increase by nearly 50 percent this year.

China's quick-service industry is expected to expand 14 percent to 115.1 billion yuan ($18.7 billion) this year from 2012, according to researcher Euromonitor International.

U.S. continues to tweak menu

Meanwhile, after dropping its Angus burgers earlier this month, McDonald's U.S. continues to tweak its menu.

Bloomberg also reports the chain is considering dropping Caesar salads, the McSkillet Burrito, the Southern Style Biscuit and steak bagels.

Some McDonald's franchisees believe the large menu has compromised customer service and operational execution.

Read more about franchising and growth or operations management.


Topics: Food & Beverage , Franchising & Growth , International , Operations Management


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