McDonald’s China partners with property developer
McDonald’s China has formed a partnership with property developer Evergrande Group with the aim of speeding up expansion throughout the mainland.
This has been announced just a fortnight after the US fast-food giant sold a controlling stake in its Chinese and Hong Kong divisions to China’s state-owned Citic Group. The newly formed McDonald’s China unveiled a plan to add 2000 more restaurants to its 2500 outlets on the mainland China over the next five years.
Citic chairman Chang Zhenming says the strategic co-operation with Evergrande will help McDonald’s restaurants quickly expand its footprint, especially in third- and fourth-tier cities.
Evergrande will give McDonald’s “priority” in site selection for its residential property developments nationwide, Citic says.
The restaurant chain is now aiming to have 45 per cent of its China stores in third- and fourth-tier cities, with more than 75 per cent of them offering delivery.
Evergrande Group has about 700 property projects in 240 mainly lower-tier mainland cities.