UK- Fast food giant McDonald’s has revealed plans to open 200 new outlets in the Republic of Ireland and the United Kingdom by 2028.
According to McDonald’s, the expansion plan will require a £1 billion (US$1.3 billion) investment and create 24,000 jobs.
The expansion plan is a significant increase from the company’s £618 million (US$810.1 million) investment in new outlets and refurbishments in the last six years. The chain opened 41 outlets in the country in 2023 alone, the highest number of openings in the past decade.
The fast food giant revealed the planned expansion aligns with its strategy of enhancing its ‘high streets’ presence as it strives to respond to the challenges of city centres and towns in the UK and Ireland.
The company also revealed it intends to test new restaurant formats, upgrade existing ones and establish smaller restaurants.
McDonald’s is pushing forward with this planned expansion strategy despite facing significant challenges. The company reported a 1% decline in comparable sales in Q2 2024, the first time it has reported a sales decline since 2020.
This sales decline is mostly due to a challenging QSR market environment, induced by high inflation which has caused cost pressures in terms of higher ingredients and raw material costs. This cost pressure transferred to customers through higher prices.
Cash-strapped customers have also cut back on eating out, stifling demand.
The QSR chain responded to this challenging market environment through value deals. It recently introduced cheaper menu options like the ‘Mix ’N’ Match’ menu, offering three items for £3 (US$3.93), which has been well-received by customers seeking value.
The expansion plan is also timely as the largest QSR chain in the world is celebrating its 50th anniversary in the UK.
Alistair Macrow, McDonald’s UK and Ireland Chief Executive, said, “We have become an important part of communities across the UK, and I’m delighted that in this milestone year, we are able to demonstrate our ongoing commitment to growth. “
“We’re proud of what we have delivered in the last 50 years and are committed to investing in new opportunities and supporting growth across the UK.”
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE
