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McDonald's ramps up China franchising, marketing

February 29, 2012

McDonald's plans to expand its presence in China through franchising, while highlighting its food quality through a new marketing campaign.

According to Reuters, the chain currently has only 36 franchised locations in the country, with the rest of its more than 1,400 units being company-operated. McDonald's first opened in China about 20 years ago.

Kenneth Chan, McDonald's China CEO, said in a press conference earlier this week that franchised locations in the country total a low percentage, but that it will change over a short period of time.

"At the end of the day, McDonald's is a franchise company," he said.

In 2011, McDonald's opened a record 200 new restaurants in China, and has plans to increase its investment there by 50 percent this year.

Chan said the company also will focus on customer loyalty/service and quality.

To accompany the latter initiative, the chain will introduce a new marketing campaign in the summer that highlights food safety and quality concerns, according to the Wall Street Journal.

The TV commercials, showing farmers picking vegetables and touting the company's 100-percent fresh beef products, will debut during the London Olympics.

The efforts are an attempt to capture some of the market share from Yum! Brands, which has a China footprint of 4,500 restaurants.

Deep fried McRib hits Austrian market

Meanwhile, in Austria, McDonald's has deep fried the popular McRib and renamed it to the McRibster. According to the Dallas Observer, the offering includes bacon, pepper Jack cheese, lettuce, onion and honey-mustard sauce.

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