Will drive-throus drive McDonald's growth?

(China Daily)
Updated: 2006-10-11 08:49

Q: Drive-throughs have been around in the United States and other markets for many years. Why are you picking this time to introduce them in such a big way in China?

A: China's growing car ownership prompted us to expand the drive-through business. Changing lifestyles and a growing acceptance of more diverse foods are creating a fertile environment for the drive-through business.

Q: What are the cost advantages or disadvantages of drive-throughs compared to your traditional restaurants?

A: The costs for drive-throughs which will feature space for 30-50 cars, indoor seating and Wi-Fi equipped restaurants are higher than for conventional restaurants. But we expect that the return on drive-throughs will more than justify this increased investment, with research suggesting there is huge demand for the service in China.

Among customers visiting our drive-throughs, 30 per cent choose to use the drive-through facilities instead of going inside the stores, compared to 65 per cent in the United States, where we have had a drive-through service since 1975.

Q: What are the future prospects for the development of drive-throughs in China?

A: We have signed a contract with Sinopec to jointly explore locations for drive-through stores. With more than 30,000 existing petrol stations in the country and an average increase of 500 stations per year, Sinopec is a perfect partner to help us expand our drive-through business in China.

Q: Will the focus on drive-throughs take business away from your traditional restaurants?

A: Drive-throughs will not benefit in any way at the expense of McDonald's traditional restaurants, with additions to the menu, including the recent arrival of the quarter-pounder, benefiting both our conventional and drive-through businesses.

Q: Many international fast food chains are competing fiercely in the China market and many more are coming. How are you coping with this increasingly intense competition?

A: The threat from competitors doesn't concern me much. I believe that McDonald's will be ok as long as it listens to its customers.

The key measurement to define our success is customer satisfaction.

Q: Are there any major obstacles to McDonald's development in China?

A: Obstacles no, opportunities yes.

McDonald's will grow with our customers, gaining more and more momentum and evolving along with our customers' changing lifestyles and expectations.


(China Daily 10/11/2006 page11)


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