McDonald’s to Sell All Stores in Hong Kong and China

McDonald’s to Sell All Stores in Hong Kong and China
Apr 15, 2016 By eChinacities.com

McDonald’s plans to sell 2,800 restaurants in North Asia to private equity forms including Bain Capital, MBK Partners, TPG Capital Management, and Chinese state-backed conglomerate China Resources. The stores are located in Hong Kong, Mainland China, and South Korea.

The U.S. fast-food giant is planning to adopt the franchise model as a new business plan for the Asian market. The Asian market is currently the most competitive “battlefield” for global chain restaurant operators. McDonald’s hopes to eventually adapt 95% of its restaurants into franchises.

McDonald’s has hired Morgan Stanley to help with the sale of its North Asian restaurants. A formal sales process is expected to begin in the next three to four weeks. McDonald’s and its advisers are drafting a list of likely partners and will be in contact with investment firms to begin to bidding process for the chain restaurant.

Source: inews.qq.com

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Keywords: McDonald’s Asia McDonald’s China McDonald’s

8 Comments

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seansarto

Because high volume service matched with finicky patronage in McDonalds runs contrary to the business model.

Apr 21, 2016 03:53 Report Abuse

Guest14167438

Isn't this quite common. They come into a country and build their brand in that country. Once their brand is well established in said country they then franchise it off allowing locals to provide the money for their growth. Which mean less profit but far less risk.

Apr 20, 2016 15:36 Report Abuse

bill8899

Sounds like they're selling franchise rights.

Apr 19, 2016 17:33 Report Abuse

philbravery

the burgers are better at Hungry Jacks (Burger King for non Australians)

Apr 19, 2016 16:38 Report Abuse

silverbutton1

McD got news from the grapevine that WW3 is starting soon. gotta get the assets out or sold before its seized by the govt. [haha, pure speculation folks, you need not worry about whats going on behind the curtains].

Apr 18, 2016 12:12 Report Abuse

RandomGuy

So this explains that, the "HALUO, HAO AREUH YOO?" is not a failed attempt to mock Foreigners and English as a language, it's just people who were taught by 'local English teachers'. I can recall constantly being asked by 'local English teachers' to proofread their lesson plans, in some cases their English was absolutely awful and they couldn't hold any basic conversation, couldn't understand basic questions, and the accent... the accent OMG. Never mind China's English proficiency is falling behind its neighbors, anyone can pretend to be an expert at something in this country, no actual qualifications or knowledge required.

Apr 17, 2016 11:04 Report Abuse

RandomGuy

Hold on a minute, isn't McDonald's already a franchise? At least in Germany they are, from what I know any individual can join in and pay a yearly license (expensive) in order to use the brand name and logo, they must also buy their products from the official chain of supply and of course follow the image of the brand (red and yellow decoration, etc...), but then the profits made by your restaurant are all yours. I'm surprised to learn that it isn't the case in Asia.

Apr 15, 2016 19:09 Report Abuse

alpha3305

Some are franchises and some are directly owned/operated by McDonalds. For taxes reasons, franchises are more preferred in some regions of the world.

Apr 17, 2016 09:39 Report Abuse