McDonald's Philippines

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McDonald's Philippines
TypeSubsidiary
IndustryRestaurants
GenreFast food chain
FoundedSeptember 27, 1981; 40 years ago (1981-09-27)
Sampaloc, Manila
FounderGeorge T. Yang
Headquarters
17/F Citibank Center Building, 8741 Paseo de Roxas, Salcedo Village, Makati, Metro Manila
,
Philippines
Number of locations
655[1] (2020)
Area served
Philippines
Key people
George T. Yang (Founder and Chairman)
Kenneth S. Yang (President and CEO)
Margot B. Torres (Managing Director)
Christine D. Lao (Marketing Director)
Products
OwnerGolden Arches Development Corporation
Number of employees
65,000[1] (2020)
ParentMcDonald's Corporation
Alliance Global Group
Websitewww.mcdonalds.com.ph

McDonald's Philippines, known locally as McDo,[2] is the master franchise of the multinational fast food chain McDonald's in the Philippines. The master franchise is held by the Golden Arches Development Corporation, a subsidiary of Alliance Global Group.[3]

History[]

A McDonald's outlet in Bulacan.

Negotiations[]

McDonald's was introduced in the Philippines by Chinese-Filipino businessman George Yang, who resided in the United States in the 1970s, though never patronized a McDonald's outlet during his stay. Aware of the fast food chain's success in North America and its increasing presence in other parts of the world, Yang researched fast-food business operations; in 1974, he contacted McDonald's headquarters in Illinois regarding a proposal for rights to open outlets in the Philippines. Yang's proposals were initially ignored, though he continued to remind the company regarding his business interest. In 1976, representatives of McDonald's International sent a delegation to the Philippines to conduct a feasibility study on establishing presence in the Philippine market.[4]

McDonald's International was also considering partnering with other local firms in establishing presence in the Philippines' other than Yang. Yang sold himself as a "long term partner" and volunteered to work in British Hong Kong where he networked with the business associate of the holder of the master franchise in the city and worked with uniformed crew at an outlet in Kowloon. In 1980, McDonald's decided to award the master franchise to Yang and, shortly thereafter, set up the first Filipino McDonald's outlet along Morayta Street, within the University Belt area in Sampaloc, Manila the following year.[4]

Entry and expansion[]

McDonald's entered the Philippine market in 1981 with McDonald's International partnering with McGeorge Food Industries of Filipino of Yang due to prohibition of majority foreign ownership in the country. This gave Yang's firm exclusive rights to manage operations of McDonald's in the Philippines. By the 1990s, there were already 375 McDonald's outlets in the Philippines, with around 150 operated as local franchises.[2]

In the mid-1980s, multinational fast food chains based abroad with presence in the Philippines began to introduce food items meant for the local market. During this time, McDonald's Philippines began to introduce meals served with steam rice, spaghetti and chicken.[4]

In 1991–1992, McDonald's expanded its reach to Visayas and Mindanao with the opening of non-Luzon outlets in Bacolod City, Cebu City and Cagayan de Oro City, respectively. In 1996, George Yang launched the Ronald McDonald House Charities in the country.

In 2005, the company concluded its deal with the American management as the Philippine division of McDonald's became a 100% Filipino-owned company when Golden Arches Corporation teamed up with Alliance Global Group Inc., a company owned by businessman Andrew Tan, to buy the remaining stake owned by McDonald's Corporation in its local division.[5][6]

In 2020, McDonald's Philippines closed down 30 stores after lease expirations and some concerns with financial sustainability, but opened 16 new stores despite the pandemic. Currently, McDonald's has 655 stores in the country, a decrease from 669 branches at the beginning of 2020 and it has not reached its pre-pandemic growth pace, which was aimed at operating more than 700 stores by the end of 2021.[1]

Products[]

Main article: International availability of McDonald's products § Philippines
Chicken Fillet Ala King served with fries, cola and steamed rice.

McDonald's Philippines maintains a menu catered towards the Filipino market. Among these items are:

  • The McSpaghetti, a sweet tomato pasta with Frankfurter bits introduced in 1986.
  • The Chicken McDo, a meal of fried chicken, steamed rice and gravy was introduced in 1987, and the Burger McDo which was introduced in 1993 which has a more subtle flavor meant to cater to the Filipino palate, which is averse to sharp and tangy flavors.[4]

In 2018–2019, they offered two limited edition burgers from McDonald's Japan, the Ebi Shrimp burger and the Teriyaki Samurai burger, under the collective named "Flavors of Japan" in the country. It also includes the Nori Shake Shake Fries and a Strawberry Sakura McFloat to their menu.[7]

Competitors[]

Jollibee of the Jollibee Foods Corporation, is often referred as the McDonald's Philippines primary competitor.[3][8] The Philippine fast food industry is led by Jollibee with McDonald's placing second with The Economist in 2002 noting the Philippines as one of the few markets where McDonald's isn't the leading fast food chain.[9]

Other policies[]

In 2013, McDonald's Philippines stated that it was not considering acquiring other brands or entering the Philippine Stock Exchange.[10]

References[]

  1. ^ a b c "McDonald's closes 30 local stores". Business World. February 9, 2021. Retrieved March 5, 2021.
  2. ^ a b Matejowsky, Ty (December 20, 2017). "Of Burges and Bees : Golden Arches Filipino". Fast Food Globalization in the Provincial Philippines. Lexington Books. pp. 34–35. ISBN 978-0739139905. Retrieved November 5, 2018.
  3. ^ a b Camus, Miguel (January 16, 2018). "McDonald's to further expand footprint in PH". Philippine Daily Inquirer. Retrieved November 5, 2018.
  4. ^ a b c d Matejowsky, Ty (20 December 2017). "Of Burges and Bees : McGeorge Yang". Fast Food Globalization in the Provincial Philippines. Lexington Books. pp. 35–41. ISBN 978-0739139905. Retrieved November 5, 2018.
  5. ^ "As told by George T. Yang: lessons from a business tycoon". Business World. December 10, 2018. Retrieved March 3, 2021.
  6. ^ Flores, Alena Mae (March 27, 2016). "McDonald's to open 500th store this year". Manila Standard. Retrieved March 3, 2021.
  7. ^ "McDonald's adds a taste of Japan to the menu". Business World. February 28, 2019. Retrieved March 6, 2021.
  8. ^ Sweeny, Paul; McFarlin, Dean (September 19, 2014). International Management: Strategic Opportunities and Cultural Challenges (illustrated ed.). Routledge. pp. 333–334. ISBN 9781135955625. Retrieved November 5, 2018.
  9. ^ Matejowsky, Ty (December 20, 2017). "Of Burges and Bees : McDonald's and Jollibee". Fast Food Globalization in the Provincial Philippines. Lexington Books. pp. 32–34. ISBN 978-0739139905. Retrieved November 5, 2018.
  10. ^ Martin, Katleen (July 12, 2013). "Why McDonald's PH isn't keen on an IPO". ABS-CBN News. Retrieved November 5, 2018.

External links[]

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