STILL upbeat on the domestic consumer market due to the country’s burgeoning economic growth, McDonald’s Philippines bared on Wednesday its investment of around P3.5 billion for its expansion plan this year.
“We’re quite optimistic [about our business]. The Philippine [economy] is growing quite faster so we want to keep pace with that growth and grow [our network] all over the country,” McDonald’s President and CEO Kenneth S. Yang told reporters in a press briefing held at the new McCafe located at the Ground Floor, Maybank Performing Arts Theater, 26th Street, Bonifacio Global City, Taguig.
Yang said 2016 was a milestone year for McDonald’s, as the total number of its stores reached over 500. More than 80 percent are located in Luzon and Metro Manila.
“We ended the year with 520 McDo restaurants all over the Philippines,” he said. “Our immediate target is 45 [new branches] this year.”
The quick-service restaurant chain is allotting P2 billion for the outlets scheduled to open in 2017.
While there are a lot of opportunities all over the country, McDonald’s is keen on expanding further outside of Luzon.
“We probably need to grow more in the Visayas and Mindanao areas,” Yang said. “In Davao we have around 16 restaurants. But we can definitely build more in Davao and in the surrounding areas.”
McDonald EVP and Deputy Managing Director Margot B. Torres said they just recently opened a new outlet in Mayon Street, Quezon City.
Soon to open is a branch in Dumaguete City by the end of this month, and in Antique within the first quarter of this year.
“We have a hole in the pipeline. But there are a lot of factors we consider on how we are going to schedule it—the opening [of our new stores]. We look forward to the 45 new McDo restaurants [by end of 2016],” she said.
To meet the requirements of its growing outlets nationwide, McDonald’s is spending P1.5 billion to build and commission a new meat plant in Calamba, Laguna, for 2017. The company’s existing meat facility is located in Cainta, Rizal.
In the succeeding years, Yang said the company will continue to accelerate its expansion program, given the bright prospects ahead of the country’s economy.
“For the years after that, we may actually increase [our target number of outlets to open annually]. First, we have to see what happens to the economy. But I think the economy is doing well. The population is there. We’re in a nice demographic area for young people. So [we’re] very bullish about the Philippines,“ he said.