Uni-Pres­i­dent, I-mei may run McDon­ald’s

McDon­ald’s con­firms switch of strat­egy, to stay in Tai­wan

The China Post - - FRONT PAGE - BY CHI- HAO JAMES LO

The Tai­wan sub­sidiary of the U.S.-owned McDon­ald’s Cor­po­ra­tion yesterday con­firmed that the com­pany is cur­rently seek­ing to change its man­age­ment and op­er­a­tional strat­egy in the coun­try, but will not be with­draw­ing from the Tai­wan mar­ket.

Early yesterday, sev­eral lo­cal re­ports claimed McDon­ald’s is seek­ing to com­pletely with­draw from the fast food mar­ket in Tai­wan, with oth­ers claim­ing that the com­pany will dis­solve its Tai­wan sub­sidiary to con­vert its en­tire op­er­a­tion from a di­rectly op­er­ated chain into fran­chis­ing.

Re­port­edly, news of a com­pany trans­for­ma­tion first be­gan to cir­cu­late when Ken­neth Chan (

), McDon­ald’s Asia Di­vi­sional Pres­i­dent for China, Tai­wan, Hong Kong and Ma­cau, first ar­rived in Tai­wan early this month.

Ru­mors cir­cu­lated that Chan en­gaged in var­i­ous meet­ings that would de­cide the fate of the com­pany’s Tai­wan oper­a­tions.

In re­sponse to the news, McDon­ald’s rep­re­sen­ta­tives yesterday at­tempted to clar­ify the com­pany’s cur­rent sta­tus.

The com­pany said that on June 12, an English let­ter writ­ten by Chan was pub­lished on McDon­ald’s em­ploy­ees’ com­mu­ni­ca­tions fo­rum “Town Hall,” to no­tify work­ers that the cor­po­ra­tion would be re­mov­ing its man­ag­ing sub­sidiary from Tai­wan, and will in­stead seek to im­ple­ment the “de­vel­op­men­tal li­censee” mar­ket strat­egy.

New Strat­egy is Mu­tu­ally Ben­e­fi­cial: McDon­ald’s

Ac­cord­ing to an of­fi­cial McDon­ald’s press re­lease pub­lished yesterday, the de­ci­sion was made in re­sponse to the com­pany’s in­ter­na­tional re­vi­tal­iza­tion plan.

The com­pany said that it is con­stantly seek­ing to im­prove it­self, and has opted to adopt the new strat­egy fol­low­ing ev­i­dence that it would be most ben­e­fi­cial to both lo­cal cus­tomers and the in­ter­na­tional chain alike.

McDon­ald’s also said the de­vel­op­men­tal li­censee strat­egy is a plan that the com­pany is very fa­mil­iar with, as it has been used in around 70 other mar­kets for the last 30 years.

The com­pany said that it is cur­rently seek­ing prospec­tive in­vest­ment part­ners to take up the of­fer and be­come li­censees.

Such in­vestors must dis­play ex­cel­lent man­age­ment skills and knowl­edge of both the Tai­wanese mar­ket and McDon­ald’s own brand.

Fol­low­ing the plan, lo­cal man­age­ment of the com­pany would ba­si­cally fall to a Tai­wanese firm. The cur­rent es­ti­mated value of the en­tire trans­ac­tion has been cal­cu­lated to ex­ceed NT$10 bil­lion.

Fi­nally, the com­pany said that it will not with­draw from Tai­wan, and that no or­ga­ni­za­tional con­sol­i­da­tion would tran­spire dur­ing the process of man­age­ment trans­fer.

Lo­cal Food Con­glom­er­ates Eyed for Man­ag­ing In­vest­ment

In re­lated news, Uni-Pres­i­dent En­ter­prises Co. ( ) and I-mei Foods Co. ( ), have both been named as pos­si­ble fu­ture man­agers of Tai­wan’s McDon­ald’s chain.

Fol­low­ing news of McDon­ald’s sale of own­er­ship, the gen­eral public took to the In­ter­net to voice dis­may and sug­ges­tions.

Some ne­ti­zens voiced their con­cerns at the prospect of a Chi­nese com­pany at­tain­ing the man­age­ment rights to McDon­ald’s lo­cal oper­a­tions, which they said would likely lead to po­ten­tial food con­tam­i­na­tion crises.

Due to con­cerns over food safety, ne­ti­zens im­plored I-mei, who came out on top dur­ing the na­tion’s food con­tam­i­na­tion scan­dal last year, to pur­chase the man­age­ment rights to McDon­ald’s for its busi­ness in­tegrity.

In re­sponse, I-mei re­port­edly stated that the idea is not im­pos­si­ble.

Uni- Pres­i­dent En­ter­prises, also ru­mored as a lo­cal com­pany that could take over McDon­ald’s Tai­wan man­age­ment, had its spokesman Tu Chung-cheng (

) pub­licly state that the com­pany has not heard of such a ru­mor.

CNA

A McDon­ald’s store in Taipei is open for busi­ness in this photo taken yesterday. The Tai­wan sub­sidiary of the McDon­ald’s Cor­po­ra­tion yesterday con­firmed that the com­pany is cur­rently seek­ing to change its man­ag­ing and op­er­a­tional strat­egy in the coun­try, but will not be with­draw­ing from the Tai­wan mar­ket.

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