McDonald’s is eyeing financial opportunity in China as economic troubles in the country spur an appetite for cheap dining options.
The company has plans to open about 1,000 new McDonald’s in China by the end of 2024, according to reports. The rapid expansion effort is part of its goal to have 10,000 total outlets in the country by 2028.
The company’s 1,000-store objective this year would keep pace with the record-breaking growth McDonald’s saw throughout China in 2023, Bloomberg reported.
The expansion will focus on lower-tier cities in the country, accounting for almost two-thirds of new McDonald’s openings across all of its international markets, according to the outlet.
The push comes amid a growing economic crisis in China that has seen demand surge for affordable dining options — and competition is booming.
McDonald’s’ most direct competitor, Yum China Holdings, the company that owns Pizza Hut and KFC in the country, is also seeking to expand, Bloomberg reported; the company already has 14,000 locations in China and seeks to increase those numbers to 20,000 over the next two years, per Bloomberg.
Even as many major brands are considering a shift away from manufacturing in China, the country’s market of 1.4 billion people is too tempting to pass up for McDonald’s and other fast-food chains.
Starbucks also recently invested $220 million in manufacturing and distribution throughout eastern China.
