Shanghai (AFP) Dec 16, 2010
American fast food giant McDonald's Corp. is planning its biggest expansion yet in China by opening up to 200 new restaurants across the country next year.
McDonald's said it planned to increase its capital spending on the mainland by 40 percent in 2011, but declined to give the value of the planned investment, Dow Jones Newswires reported.
"We're committed to China, changing the face of the brand to become a place where young consumers want to come and stay," Kenneth Chan, McDonald's chief executive in China, told reporters in Beijing on Wednesday.
Chan said the company also plans to remodel 80 percent of its existing restaurants, changing the red and yellow decor to a more relaxed, European-style bistro design.
McDonald's faces increased competition in China, where it trails KFC, owned by Yum! Brands Inc., which has 3,200 locations compared to about 1,100 McDonald's outlets.
"It took us 19 years to get to 1,000 stores," Chan said. "Now it's time to pick up the pace."
Half of the new restaurants will be drive-through outlets primarily in China's biggest cities such as Shanghai and Beijing, but Chan said the company will also move deeper into smaller cities.
KFC has benefited from its locations in China's lesser-developed cities, where rents are lower and there is less competition, analysts say.
McDonald's, which operates in 150 Chinese cities, lacks distribution networks that would allow the company to expand, Keith Siegner, a restaurant analyst for Credit Suisse, told the Wall Street Journal.
"There's a tremendous opportunity for McDonald's if they broaden out," Siegner said, adding that the company has sufficient capital to invest.
Share This Article With Planet Earth
Farming Today - Suppliers and Technology
Land disputes are worst problem in rural China: report
Beijing (AFP) Dec 16, 2010
Land disputes are the most volatile social problem in rural China as forced official property seizures trigger growing unrest, state media reported Thursday, citing a top think tank. The problem of land seizures has stirred an uproar in recent years as economic stimulus measures and an urban development push have fuelled a property boom and a resulting rash of mass evictions in the rush to c ... read more
Facebook face recognition finds friends in photos|
Plant Consumption Rising Significantly As Population And Economies Grow
NASA Satellite Data Addresses Needs Of California Growers
Satellites Give An Eagle Eye On Thunderstorms
Universal Address And GPS Enhanced Google Maps For iPhones
New GeoGroups App Reinvents Geo-Social Experience
NAVTEQ Expands Global R And D Capabilities
Officials Complete GPS Software Upgrade Ahead Of Schedule
Beetle-ridden forests lose climate help
Ancient Forest Emerges Mummified From The Arctic
A Study Analyzes The Movement Of Tree Sap
'Mile-a-minute' weed threatens Nepal's jungles
Champion Hydrogen-Producing Microbe
"Green genes" In Yeast May Boost Biofuel Production By Increasing Stress Tolerance
Seaweed As Biofuel? Metabolic Engineering Makes It A Viable Option
Doubling Import Tax On Ethanol Will Escalate Brazil-US Trade Conflict
Xcel Energy And SunEdison Break Ground On Solar Deployment In New Mexico
SunReports Approved By California Solar Initiative's Thermal Program
Kalahari Greentech Tests Gas Turbine
Solopower Offers World's Most Powerful Certified Flexible CIGS Module
Nordex USA Wins 41MW Order For Iowa Wind Farm
Wind Turbines On Farmland May Benefit Crops
Massive offshore wind proposed for R.I.
Repair And Inspection Services For The Expanding Wind Power Industry
China mine blast death toll up to 26: state media
Seven found dead in China mine flood: state media
China mine flood traps at least seven: state media
29 still trapped in New Zealand coal mine
China must reveal fate of Mongol activist: Amnesty
Chinese public increasingly unhappy with life: survey
Japanese feelings for China at record low: poll
China shelter 'sold 70 mentally disabled people into slavery'
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement|