Golden Arches Development Corp. (GADC) said over the weekend it expects to have 1,000 McDonald’s stores in the Philippines over the next two years.
GADC of the Yang family is the master franchise holder of fast-food McDonald’s in the country. It was recently granted a fresh 20-year franchise covering the period 2025 to 2045.
The company plans to open another 65 stores this year and refurbish existing stores with capital spending of P3 billion to P5 billion.
“We will continue to build new restaurants all over the Philippines. We will grow through our company owned stores as well as through franchise restaurants,” GADC president Kenneth Yang said in a recent interview.
Most of the new stores will be built outside Metro Manila, particularly in southern Luzon and Visayas. Yang said the average cost of one store is P60 million.
About 55 percent of McDonald’s stores in the Philippines are GADC-owned, while 45 percent of stores are franchised outlets.
Yang also expressed confidence about the continued growth in sales amid easing inflation and increasing purchasing power of consumers.
“In the last three years we’ve been growing at around 15 percent and we want to maintain that pace,” Yang said.
After opening the first McDonald’s store in Morayta, Manila, GADC has expanded its store network to end 2024 with 792 stores.
“We will open our 800th store soon,” Yang said.
GADC on Friday reported that it signed a multi-year franchise agreement with Chicago-based McDonald’s Corp.
Under the agreement, GADC has authority to own, develop and operate restaurants and engage in the sub-franchising of restaurants under the McDonald’s in the Philippines.
GADC chairman George Yang has held the master franchise since the opening of the first McDonald’s store in 1981.
Alliance Global Group Inc. of business tycoon Andrew Tan also owns a stake in GADC.