McDonald’s Focuses On Asia

McDonald’s Corp. is laying out big plans for China and Korea. In China, McDonald’s plans to raise capital spending by 40% above 2010 levels. The Oak Brook, Ill., company will build as many as 200 new stores across the country—more than in any previous year, and swap out the old red and yellow decor for a European-style bistro design. By ’13, it plans to remodel 80% of its existing outlets in China.

Half the chain’s new Chinese restaurants will be drive-through outlets. In addition, McDonald’s will increase delivery services to 550 locations from 400 and accelerate the opening of McCafés and 24-hour restaurants.

In Korea, the chain will invest $436 million to more than double its presence from 243 to 500 units during the next five years. McDonald’s Korea has grown quickly by introducing 24-hour stores, home delivery and customized breakfast menus. The chain will rely on a franchisee-driven strategy for expansion. 

The five-year Korea plan includes re-imaging existing restaurants with contemporary designs by ’13 and installing drive-through windows at nearly all new stores. Companywide remodeling efforts have helped boost sales in renovated stores by 7% compared to non-renovated stores.