Stricker
PGP Banner

Chasing elusive growth in China, McDonalds cedes power to franchisees

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
  • Share on Google Plus
  • Share on Reddit
January 11, 2017   Copyright:

The world’s largest fast food chain loosened its grip on the Chinese market in a $2 billion deal to sell absolute control over its restaurants. The move, announced Jan. 9, will effectively unleash its 2,640 Chinese and Hong Kong locations into a franchise model, giving more autonomy to local franchisees to run individual restaurants while reducing risk for the larger corporation. In relinquishing control, the fast food behemoth is hoping menu innovation, technological upgrades, and delivery will drive growth and justify the opening of 1,500 new locations by 2022. The deal, good for two decades, gives the franchise rights to state-owned conglomerate, Citic, and the Carlyle Group, a private equity firm. Citic will have a 52% controlling stake, Carlyle will take 28%, and McDonald’s will maintain a 20%  ...

Join our Discussion Forums

New Members

  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon
  • icon

Featured Contributors

HR and Recruiting
5 Practical HR Tips for a Successful Business

November 2, 2016 / Community Contributor

Community Conversations

JobSpotlight

Sous Chef

Type: Cook
Location: New York

Busser

Type: Busser
Location: Texas

North Star Tavern

Type: Cook
Location: New York

Dining Business & Operations Manager

Type: Manager
Location: District of Columbia

General Manager - Dining Services

Type: Manager
Location: Virginia

Featured Products

prod-image

Brew City Black & Tan Onion Rings

The ultimate snack for craft beer fans. Thick cut Brew City Black and Tan onion...