Zhang Jiayin, CEO of McDonald's China: The Chinese market provides McDonald's with a unique development opportunity

【Multinational Enterprises in China】

Editor's note:

　　Walk into a multinational enterprise in China, and listen to the CEO of the foreign enterprise talk about "opportunities for Chinese-style modernization" and explain "the way of economic globalization".

　　China News Service , November 3rd,

　　China-Singapore Finance Wu Jiaju

　　"In the past ten years, in the face of the complex and ever-changing global situation, China's economy has maintained rapid growth and has played an increasingly important role in the growth of the world economy." Zhang Jiayin, CEO of McDonald's China, recently accepted an exclusive interview with Zhongxin Finance and Economics If so.

　　Zhang Jiayin said that in the past ten years, China has made great efforts to stimulate the vitality of market players and continuously improve the construction of the market system, which has provided a continuously optimized business environment for the steady development of McDonald's China.

It is expected that by the end of 2022, McDonald's China will open more than 5,000 restaurants, more than doubling the number of restaurants in five years.

The interview transcript is as follows:

Zhongxin Finance: Since opening its first restaurant in China in Shenzhen in 1990, McDonald's has been deeply involved in the Chinese market for more than 30 years.

In the past ten years, the Chinese market has undergone tremendous changes. As one of the witnesses, how does McDonald's view the development and changes of the Chinese market in the past ten years?

Zhang Jiayin:

When McDonald's first entered China in 1990, it was hard to find a McDonald's restaurant in Beijing, Shanghai, Shenzhen and other cities. Today, McDonald's has nearly 5,000 restaurants all over the country.

　　The rapid development of McDonald's has benefited from the rapid growth of China in the past 30 years.

In the past 30 years, China's economy has developed rapidly, residents' income has continued to grow, and consumer demand has become more diversified.

In the past 10 years, China has been striving to stimulate the vitality of market entities and continuously improve the construction of the market system, which has provided a continuously optimized business environment for McDonald's steady development in China.

The Chinese government is committed to creating a market-oriented, legalized, and internationalized first-class business environment, which has created objective conditions for McDonald's to cooperate with CITIC and Carlyle in 2017 to jointly develop business in mainland China and Hong Kong, China, and help McDonald's China to further develop Deepen localization and accelerate growth in China.

　　McDonald's has witnessed the wave of China's economic development, and has taken root in China to resonate with China's social and economic development through innovation and growth.

Zhongxin Finance and Economics: Since entering the Chinese market, what localization strategies has McDonald's adopted?

Zhang Jiayin:

In the past 30 years, McDonald's has witnessed one brilliant achievement after another in China, and the huge consumption potential of the Chinese market has also provided McDonald's with a unique development opportunity.

Our localization strategy focuses on opening new stores to expand the market, developing non-dine-in business, accelerating new product development, and driving digital empowerment to continuously accelerate our development in China.

　　Since 2017, McDonald's has strategically cooperated with CITIC and Carlyle to jointly develop business in mainland China and Hong Kong, China, marking McDonald's China entering the "Golden Arch" era, rooting in China, making full use of local resources, speeding up decision-making, and capturing rapid development. The opportunities in the Chinese market have further accelerated the localization process of McDonald's in China.

　　Today, McDonald's China has nearly 5,000 restaurants and more than 180,000 employees. It has become the second largest market for McDonald's in the world and the fastest growing market. It has achieved a high degree of digitalization and empowered business growth.

Zhongxin Finance: In the face of new concepts and trends in consumption, what changes has McDonald's China made in product development and service innovation?

Zhang Jiayin:

McDonald's China has always paid close attention to the rapidly changing consumer demands in the Chinese market.

With iconic classic products, digital-driven convenience and highly customized membership services as key growth drivers, we will continue to promote high-quality and rapid growth in the "Golden Arches Era".

　　As a western-style fast food brand, McDonald's China actively collects consumer feedback and continuously enriches its menu. It has successfully launched Mai Spicy Chicken Thigh Burger, Pan-seared Chicken Thigh Burger, Mai Spicy Chicken Wing, Mai Mai Crispy Chicken and Kazi Crispy Chicken Thigh Burger for Chinese consumers. product.

Among them, McMai Crispy Chicken and Kazi Crispy Chicken Burger are the latest achievements of McDonald's China after entering the "Golden Arches Era".

In 2021, McDonald's China will open a new headquarters building with an innovative menu laboratory and restaurant digital kitchen. Innovation runs through research and development, and more than 160 new products will be launched in 2021.

　　In recent years, with the rapid development of mobile internet and digitalization, Chinese consumers have increasingly demanded the convenience of food.

McDonald's China is meeting new consumer demands by accelerating store openings, continuing to innovate and harnessing digital change.

　　After entering the "Golden Arch Era" in 2017, the development of McDonald's China has continued to accelerate.

It is expected that by the end of 2022, McDonald's China will open more than 5,000 restaurants, more than doubling the number of restaurants in five years, expanding the scope of delicious food and services for consumers.

In addition, we continue to innovate our offline channel business platform to better meet the consumption habits of various consumers, such as the "M to Go" smart ordering cabinet that can easily pick up and take away meals, and the ability to directly order food in a car , drive-thru, etc.

　　At the same time as the rapid offline expansion, McDonald's China is also accelerating the deployment of online business.

We provide online food ordering platforms, payments and services on multiple platforms, as well as online stores on multiple e-commerce and social commerce platforms.

Whether it’s pickup, delivery, live-streaming coupons, subscription cards, credit card points, or coupon redemption, customers can choose the channel and method they prefer to place their order.

　　In addition, consumers' demand for catering delivery has become increasingly strong during the epidemic.

In this context, more than 90% of McDonald's China's nearly 5,000 restaurants provide the "McDonald's Delivery" delivery service that promises to arrive within 30 minutes.

Today, McDelivery has become an important engine for McDonald's China's overall sales and maintains strong growth.

Zhongxin Finance: In September this year, McDonald's China released its first "zero carbon restaurant" in China.

What are the future layouts of McDonald's China in the "dual carbon" field?

Zhang Jiayin:

In the past ten years, we have seen that while accelerating economic development, China has continuously accelerated the promotion of green development, and regards respect for nature, conformity to nature, and protection of nature as the inherent requirements of modernization.

China accelerates the green transformation of its development mode, implements a comprehensive conservation strategy, develops green and low-carbon industries, advocates green consumption, and promotes the formation of green and low-carbon production methods and lifestyles, which coincides with McDonald's China's green development concept.

　　The restaurant is the core of McDonald's business. McDonald's China has always been committed to building green restaurants, promoting the continuous optimization of equipment and operation adjustments in restaurants to achieve energy conservation and emission reduction.

For the newly opened restaurants, McDonald's strictly implements safety, environmental protection and sustainability from site selection, design and construction, and has obtained the international authoritative LEED certification.

Up to now, McDonald's China has 1,600 LEED certified green restaurants.

It is expected that by the end of 2022, McDonald's China will open more than 1,800 LEED certified green restaurants.

　　In addition, McDonald's is also actively working on innovative breakthroughs in green restaurants.

On September 20, McDonald's Beijing Shougang Park restaurant officially opened. The restaurant was designed and constructed with reference to the international authoritative pioneer in energy and environmental design (LEED) rating zero-carbon emission standards and zero-energy consumption standards. The restaurant built more than 2,000 square meters of solar energy in the site. The photovoltaic power generation system has an average annual power generation capacity of 330,000 kWh, which meets the daily operation power needs of the restaurant.

　　The restaurant is also the most important window for McDonald's to interact and communicate with consumers. McDonald's China, through online and offline consumer science and interaction, runs green experience into every link of the customer journey, and encourages a green and carbon-reducing lifestyle.

　　In McDonald's restaurants, customers can experience various results of McDonald's "green recycling" core platform "reinventing good things".

The products of this project, such as ocean plastic recycling chairs, "Mumbling Elephant", baby chairs and green dinner plates, have also been unveiled in McDonald's China Green Restaurant.

McDonald's Green Restaurant also provides consumers with "green packaging" such as 100% sustainable forest certified base paper (FSC) packaging bags, straw-free drink cups and degradable plastic drink bags, using greener packaging on the premise of ensuring consumers' dining experience packaging, reducing packaging materials and plastics, and using sustainable certified base paper.

Zhongxin Finance: At present, the global economic situation is complex and changeable.

Will this have an impact on McDonald's business in China?

How will McDonald's develop its business layout in the Chinese market in the future?

Zhang Jiayin:

We have seen that in the past ten years, in the face of the complex and ever-changing global situation, China's economy has maintained rapid growth and is playing an increasingly important role in the growth of the world economy.

　　McDonald's will continue to take root in the Chinese market. On the basis of insight into the tastes and lifestyles of local customers, McDonald's will accelerate the innovation and research and development of new products, and continue to introduce new products to bring customers fresh and delicious products.

At the same time, McDonald's China will continue to open new restaurants, navigate digital transformation and accelerate business platform innovation to cover more markets and meet the ever-changing consumer needs of customers.

　　At the same time, we also pay attention to China's green future. Together with authoritative and professional partners, we link upstream and downstream suppliers to drive sustainable business growth with a green development engine and reduce the impact on the environment. Continuous exploration and development in supply chain and green recycling to create a greener future for the next generation.

(Finish)