...and the milestone is grrrreeeaaassssy!
Also: A new milestone in the evolving definition of the word
'restaurateuring'
"We'll bring our knowledge of restaurateuring," McDonald's vice
president Gary Rosen said."
.
The alliance is aimed at capitalizing on two Chinese consumer trends
embraced by an emerging middle class: the popularity of Western
fast-food and a new car culture.
.
Note: There are only 2 brands of gasoline in China.
McDonald's and Sinopec will open drive-through outlets in China
Posted 6/20/2006 1:18 PM ET
BEIJING (AP) — McDonald's (MCD) and China Petroleum and Chemical Corp.
announced an alliance Tuesday to build drive-through McDonald's outlets,
hoping to profit from soaring Chinese car ownership.
Under the agreement, McDonald's and its Chinese partner, known as
Sinopec, will turn some of the 30,000 gasoline service stations Sinopec
operates nationwide into drive-throughs, the companies said.
Sinopec "will bring their knowledge of real estate. We'll bring our
knowledge of restaurateuring," McDonald's vice president Gary Rosen said.
The companies declined to estimate the value of the deal, and Jeffrey
Schwartz, chief executive of McDonald's China, said there was no
numerical target for the number of outlets to be built.
The alliance is aimed at capitalizing on two Chinese consumer trends
embraced by an emerging middle class: the popularity of Western
fast-food and a new car culture.
China is now the fastest growing market for McDonald's and market leader
Yum Brands' (YUM) KFC and Pizza Hut. At the same time, auto sales grew
30% last year, to 5.7 million vehicles, slightly lower than in Japan.
In a sign of expectations for growth in China, Rosen said in the United
States, McDonald's biggest market, more than 60% of the company's
business is at drive-throughs.
"The business potential is enormous," Rosen said.
McDonald's, which already has 760 restaurants in China, has said it
foresees turning half the more than 240 outlets it plans to open by 2008
into drive-throughs. It opened its first drive-through in China in the
southern manufacturing center of Dongguan in December and followed with
two more, in Foshan and Shanghai, in January.
For Sinopec, which is adding 500 service stations a year to its network,
the alliance with McDonald's is a chance to differentiate its brand, the
company said. Sinopec faces competition from China's other behemoth oil
products company, China National Petroleum Corp.
McDonald's Chinese store numbers still lag far behind the 1,900 that KFC
had last year. KFC has racked up average growth of 20% over the past
five years.
Contributing: Reuters
Copyright 2006 The Associated Press. All rights reserved. This material
may not be published, broadcast, rewritten or redistributed.
Find this article at:
http://www.usatoday.com/money/industries/food/2006-06-20-mcdonalds-china_x.htm?csp=34
