Uni-President, I-mei may run McDonald’s
McDonald’s confirms switch of strategy, to stay in Taiwan
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.
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.