McDon­ald’s to add 2,000 China eater­ies

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM -

NEW YORK — McDon­ald’s will nearly double the num­ber of restau­rants in China over the next five years, mean­ing China will even­tu­ally sur­pass Ja­pan as the ham­burger chain’s sec­ond-big­gest mar­ket out­side the U.S.

The com­pany ex­pects to have 4,500 restau­rants in China by 2022, up from 2,500. With fewer peo­ple eat­ing at U.S. lo­ca­tions, it hopes to grow sales in China by double dig­its in each of the next five years.

Slow­ing traf­fic at home has other Amer­i­can com­pa­nies turn­ing to China for growth. Star­bucks, for ex­am­ple, wants have 5,000 cof­fee shops in the coun­try by 2021, more than dou­bling its store count.

Some chains, how­ever, have run into trou­ble in China. Yum Brands, the owner of KFC and Pizza Hut, spun off its 7,500 restau­rants in China into a sep­a­rate com­pany af­ter it failed to re­vive de­clin­ing sales.

The an­nounce­ment from McDon­ald’s Corp. on Tues­day comes a week af­ter it com­pleted a pre­vi­ously an­nounced deal to sell most of its op­er­a­tions in China. The deal leaves McDon­ald’s, based near Chicago in Oak Brook, Ill., with a 20 per­cent stake in its China busi­ness.

McDon­ald’s said 45 per­cent of its 4,500 China restau­rants will be in heav­ily pop­u­lated in­dus­trial cities such as Shan­tou and Shi­ji­azhuang. And 75 per­cent of the stores will of­fer de­liv­ery.

There are about 37,000 McDon­ald’s restau­rants world­wide and more than 14,000 in the U.S.

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