Taiwan outlets directly owned and operated by McDonald’s Corp. are up for sale as part of the U.S. fast food giant’s global reorganization strategy.
“We are looking for investors as developmental licensee partners,” McDonald’s Taiwan said. “It is important potential candidates share our corporate values and vision, and are committed to growing the local business through innovation.”
According to the company, it has operated franchises in 70 markets worldwide for 30 years and views the strategy as particularly effective when it comes to responsive decision-making and business expansion.
Despite the change, “McDonald’s will not pull out of Taiwan, nor will our commitment to high standards of food safety change with the new business strategy,” the company added.
Cynthia Kiang, director-general of the Department of Commerce under the Ministry of Economic Affairs, said the decision by McDonald’s is not uncommon in the food services business.
“The company is planning to sell 3,500 stores worldwide to franchisees, and Taiwan is on the list given the country’s maturing market,” she said. “But this does not necessarily indicate a lack of confidence in Taiwan.”
Industry analysts believe that the latest move underscores the intentions of McDonald’s to further build its brand worldwide on the strength of its proven franchise system and quality employees and suppliers.
At the time of opening its first store in Taipei City 31 years ago, McDonald’s was the first U.S. fast food chain to venture into the local market. The company now accounts for nearly half of the Western-style fast-food restaurants in Taiwan.
There are 414 McDonald’s outlets in Taiwan, with less than 17 percent operated as franchisees. Local investment totals NT$2.76 billion (US$88.75 million). (SFC-JSM)
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