January 18, 2011 12:14
The fast-food chain McDonald's will shift to a more aggressive expansion strategy by increasing the number of franchisee contractors in Korea. In a press conference in Seoul, McDonald's Korea managing director Sean Newton announced on Monday that with W500 billion of investment in the next five years, McDonald's hopes to boost the number of outlets here to 500 (US$1=W1,119).
It currently has 233 directly operated stores in Korea but only 10 franchise contractors. The plan is to push up the number of franchise outlets to 200, Newton said.
Over 80 percent of the new stores will be "drive-thru" outlets. "By 2015, approximately 40 percent of our restaurants will be run by franchisees business partners," he said, meaning setting up outlets at gas stations in collaboration with Korean oil refineries or in rest areas along the highways.
The chain achieved two-digit growth for five consecutive years in Korea, Newton said, and given that there are some 1,000 McDonald's outlets each in Britain and France, which have a similar population size to Korea, there is sufficient room for more growth here.
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