050140 McDonald's Views China As Fast Growing AreaJanuary 21, 2005
Hong Kong - McDonald's Corp. said on Friday it views China as its fastest developing area after the United States over the next couple of years, thanks to a booming economy and growing consumption patterns. The world's largest fast food chain, which serves burgers, spicy chicken wings and is testing rice triangle wraps in some mainland outlets, said it aims to have 1,000 stores throughout China by 2008, up from 640 currently. "China had a very good year in 2004. Early on we concentrated on large cities. Today, it's just throughout the country," said Marvin Whaley, president of McDonald's in Asia, Middle East and Africa. China is among the world's fastest growing economies, with massive urbanisation and growing incomes spawning increasingly westernised consumption habits in a country where rice has been the main diet for centuries. Competition is rife among Western fast food chains, with Yum Brands Inc. , the parent of Kentucky Fried Chicken and Pizza Hut, testing a Chinese fast-food concept for China. Yum, which has more than 1,200 KFC outlets in China where chicken is more popular than beef, is also testing a casual dining version of its Taco Bell chain in China. Whaley said McDonald's planned to open 200 stores per year for the next two years. The restaurant chain, best known for American style burgers and french fries, runs 30,000 restaurants throughout the world. Whaley said McDonald's would start "to look" at the use of a franchise operating model in China. Right now only one McDonald's restaurant is run by franchise in China, with others run under a joint venture business model. He did not provide sales figures.
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