Retail in Asia


McDonald’s Malaysia to double store presence

McDonalds Malaysia Store Opening - Retail in Asia

McDonald’s Malaysia will expand its store stable over the next nine years, taking its current store total to 450 by 2025.

The fast-food operator will invest 1.4 billion ringgit (US$317 million) to facilitate an almost doubling of store numbers in Malaysia.

According to a press release, some 363 million ringgit will be used to open 33 new restaurants and refurbish 86 existing outlets by 2019, in an “aggressive three-year accelerated growth plan.”

In addition, more than sixty per cent of outlets will have a drive-thru service, increasing consumer “convenience, anytime anywhere,” Azmir Jaafar, McDonald’s Malaysia managing director, told reporters.

McDonald’s Malaysia also plans to open more McCafes, and launch mobile app-enabled delivery and 24-hour stores — slated for urban areas and on busy roadsides.

The retail shakeup comes just 100 days after Lionhorn, part of Saudi Arabia’s Reza Investment Company, acquired the American restaurant’s franchise license to operate 400 McDonald’s outlets in Malaysia and Singapore.

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At the time, McDonald’s hailed the venture as positive with more flexibility for accessing capital, and more streamline decision making for business growth.

As part of McDonald’s turnaround plan announced in May 2015, it was committed to refranchising 4,000 restaurants by end-2018 with the long-term goal of becoming 95% franchised. McDonald’s has now refranchised about 1,300 restaurants.

U.S.-based McDonald’s shift to Developmental Licensee ownership in Malaysia has further allowed local market stores to create products for local consumption.

Product customisation, coupled with McDonald’s burger icons, resulted in double-digit growth for McDonald’s Malaysia last year. Same-store sales surged 16% year on year in 2016, driven the Big Mac and the “Great Value” hamburger products.

Looking forward, the fast-food operator projects double-digit growth for 2017 in Malaysia. It currently boasts a network of 262 restaurants and 12,000 employees and served 13.5 million customers monthly.