McDonald's China eyes further expansion into lower-tier cities

McDonald's China said it will maintain its new store opening strategy in China as well as the acceleration of its digitalization trend. 
Ti Gong

McDonald's China said it will maintain its new store opening strategy in China as well as the pushing forward of its digitalization trend. 

Last year, the chain signed partnership deals with four major Chinese property developers including Evergrande Group, Country Garden, to gain access to more locations and expand their presence in new markets.

Over the past 12 months, McDonald's has opened more than 300 new stores in China — that expansion pace is expected to continue in the future. 

Now more than 75 percent of McDonald's outlets in the country are equipped with self ordering kiosks and digital payment capabilities. 

McDonald’s said last August that it has completed the sale of a majority stake to form a new company that will run all outlets on China's mainland and in Hong Kong.

By 2020, approximately 45 percent of all 4,500 restaurants across China will be located in third and fourth tier cities, including 300 lower tier cities. 

It will be focusing on standard menu items including hamburgers, snacks and beverages, while working on new items to cater to local consumers' specific tastes. 

In terms of new stores, it will be focusing on supply chain management and the addition of more family dining elements for stores in lower tier cities.

McDonald's also announced that it will celebrate the 50th anniversary of the Big Mac around the world, and will launch five kinds of coins known as McCoins, which can be used to redeem one free Big Mac at any outlet.

More than 6.2 million McCoins will be distributed in more than 50 countries — McDonald's China will begin delivering more than one million of the coins to Chinese consumers on August 6. 

CITIC and CITIC Capital now hold a controlling stake of 52 percent in McDonald’s China.


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