McDonald’s to put up 50 more stores this year
Golden Arches Development Corp., the company behind McDonald’s Philippines, plans to open at least 50 stores this year, higher than the 45 stores it opened in 2022, its founder and chairman George Yang told The STAR.
In the future, the target is to bring the McDonald’s store network in the Philippines to 1,000 from around 700 at present.
“We opened a lot of stores and we are still opening. This year, we will open at least 50 stores, or one store a week,” Yang said.
He said sales have recovered from the pandemic and are again very strong due to pent-up demand.
“You are locked down for two years. People have some money to spend, they want to go out,” he said.
The company’s drive-thru and delivery outlets also continued their strong performance, both experiencing double-digit growth in sales and guest counts.
However, Yang is well aware of the challenges, such as inflation, which is still at a high of 8.6 percent in February even though it eased from 8.7 percent in January.
“It’s a big challenge because inflation (leads to) higher prices. So that’s a big challenge. We had to adjust our prices. Everybody can feel it. Purchasing power is affected. So that is the big challenge. It will affect customers” he said.
Yang said the company has been adjusting by doing a combination of measures including reducing its margins and adjusting its prices.
The company also does strategic pricing to balance profitability and customer demand. It also has mix-and-match offers and it has activated its McDonald’s app which offers customers discounts.
McDonald’s kept its focus on improving the quality and safety of its food and service across all customer channels. It was underscored by initiatives that the company implemented in support of its employees, owner-operators and partners.
Yang brought the master franchise of McDonald’s in the Philippines through Golden Arches some 40 years ago, for which he eventually partnered with tycoon Andrew Tan.