McDonald's Philippines

McDonald's Philippines, known locally as McDo,[1] is the master franchise of the multinational fast food chain McDonald's in the Philippines. The master franchise is held by the Golden Arches Development Corporation, a subsidiary of Alliance Global Group.[2]

McDonald's Philippines
IndustryRestaurants
GenreFast food chain
FoundedSeptember 27, 1981 (1981-09-27) in Morayta, Sampaloc, Manila
FounderGeorge Yang
Headquarters
Makati, Metro Manila
,
Philippines
Area served
Philippines
OwnerGolden Arches Development Corporation
ParentMcDonald's Corporation
Alliance Global Group
Websitewww.mcdonalds.com.ph

History
A McDonald's outlet in Malate, Manila.

Negotiations

McDonald's was introduced in the Philippines by Chinese-Filipino businessman George Yang, who resided in the United States in the 1970s, though never patronized a McDonald's outlet during his stay. Aware of the fast food chain's success in North America and its increasing presence in other parts of the world, Yang researched fast-food business operations; in 1974, he contacted McDonald's headquarters in Illinois regarding a proposal for rights to open outlets in the Philippines. Yang's proposals were initially ignored, though he continued to remind the company regarding his business interest. In 1976, representatives of McDonald's International sent a delegation to the Philippines to conduct a feasibility study on establishing presence in the Philippine market.[3]

McDonald's International was also considering partnering with other local firms in establishing presence in the Philippines' other than Yang. Yang sold himself as a "long term partner" and volunteered to work in the then-British colony of Hong Kong where he networked with the business associate of the holder of the master franchise in the city and worked with uniformed crew at an outlet in Kowloon. In 1980, McDonald's decided to award the master franchise to Yang and, shortly thereafter, set up the first Filipino McDonald's outlet within the University Belt area in Manila the following year.[3]

Entry and expansion

McDonald's entered the Philippine market in 1981 with McDonald's International partnering with McGeorge Food Industries of Filipino of Yang due to prohibition of majority foreign ownership in the country. This gave Yang's firm exclusive rights to manage operations of McDonald's in the Philippines. By the 1990s, there were already 375 McDonald's outlets in the Philippines, with around 150 operated as local franchises.[1]

In the mid-1980s, multinational fast food chains based abroad with presence in the Philippines began to introduce food items meant for the local market. During this time, McDonald's Philippines began to introduce meals served with steam rice, spaghetti and chicken.[3]

Products
Main article: International availability of McDonald's products § Philippines
Chicken Fillet Ala King served with fries, cola and steamed rice.

McDonald's Philippines maintains a menu catered towards the Filipino market. Among these items are: the McSpaghetti, a sweet tomato pasta with Frankfurter bits introduced in 1986; the Chicken McDo, a meal of fried chicken, steamed rice and gravy was introduced in 1987, and the Burger McDo which was introduced in 1993 which has a more subtle flavor which is meant to cater to the Filipino palate which is averse to sharp and tangy flavors.[3]

Competitors

Jollibee of the Jollibee Foods Corporation, is often referred as the McDonald's Philippines primary competitor.[2][4] The Philippine fast food industry is led by Jollibee with McDonald's placing second with The Economist in 2002 noting the Philippines as one of the few markets where McDonald's isn't the leading fast food chain.[5]

Other policies

In 2013, McDonald's Philippines stated that it was not considering acquiring other brands or entering the Philippine Stock Exchange.[6]

References
  1. Matejowsky, Ty (20 December 2017). "Of Burges and Bees : Golden Arches Filipino". Fast Food Globalization in the Provincial Philippines. Lexington Books. pp. 34–35. ISBN 0739139908. Retrieved 5 November 2018.
  2. Camus, Miguel (16 January 2018). "McDonald's to further expand footprint in PH". Philippine Daily Inquirer. Retrieved 5 November 2018.
  3. Matejowsky, Ty (20 December 2017). "Of Burges and Bees : McGeorge Yang". Fast Food Globalization in the Provincial Philippines. Lexington Books. pp. 35–41. ISBN 0739139908. Retrieved 5 November 2018.
  4. Sweeny, Paul; McFarlin, Dean (19 September 2014). International Management: Strategic Opportunities and Cultural Challenges (illustrated ed.). Routledge. pp. 333–334. ISBN 9781135955625. Retrieved 5 November 2018.
  5. Matejowsky, Ty (20 December 2017). "Of Burges and Bees : McDonald's and Jollibee". Fast Food Globalization in the Provincial Philippines. Lexington Books. pp. 32–34. ISBN 0739139908. Retrieved 5 November 2018.
  6. Martin, Katleen (12 July 2013). "Why McDonald's PH isn't keen on an IPO". ABS-CBN News. Retrieved 5 November 2018.
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