McDonalds ain’t messing around with its China strategy. Having already spread out its home delivery service last year, and then lowered prices for its popular items on the China menu two months ago, it’s now announced plans for a major hiring spree.
The Big Mac maker will be recruiting over 10,000 people, hiking the salaries of its existing staff, and setting up training and development programs in this country over the next year. Kenneth Chan, the new CEO, said McDonalds China needed to open more outlets to keep pace with its rising business growth.
All that expansion in the middle of an economic recession? Sounds crazy to us, especially considering that, unlike in the United States or Europe, McDonalds isn’t actually considered the “cheaper” option over here. But Chan thinks he’s got a winning formula.
As he told the China Daily:
“Actually, I am not concerned about China, as I am confident about the long-term potential of the market,” Chan said. “This year will mark the beginning of the company’s most rapid expansion in China.”
All of this effort may be to compete with KFC, still the dominant fast food outlet in the country. KFC, which entered China a good three years before its rival, has beat McDonalds’ business by a ratio of more than 2.5:1, according to some estimates.