McDonald’s Malaysia eyes higher customer base by year-end


McDonald’s Malaysia customer base is set to increase to 200 million by year-end with the opening of new restaurants that are part of the fast food chain expansion plan.

MD/operating partner Azmir Jaafar said McDonald’s Malaysia currently has a network of 262 restaurants and 12,000 employees serving 169 million customers.

“We would see the number increasing by year-end as we see new restaurants coming into shape,” Azmi told reporters after the launch of Fraser and Neave Beverages Marketing Sdn Bhd (F&N) and McDonald’s Malaysia joint marketing partnership yesterday.

Azmi said McDonald’s Malaysia is aggressively pursuing an expansion plan and are investing a total of RM1.4 billion over 10 years to expand its network of stores in the country.

Earlier this year, McDonald’s Malaysia was reported to have allocated RM363 million to establish 33 new restaurants while remodelling 86 existing outlets that would create 2,000 new jobs within three years.

The fast food operator also announced that a total of RM100 million will be allotted for expansion plans this year, while two outlets, which are no longer rational for the business, will be closed.

Azmir said McDonald’s Malaysia now has more than 150 drive-through restaurants, 200 “24-hour” restaurants, more than 90 restaurants with delivery services and over 100 McCafes, and will continue its growth trajectory under the new Developmental Licensee (DL) ownership.

Late last year, McDonald’s Corp, the world’s largest fast- food chain, sold its Malaysia and Singapore franchise licence to a Saudi group, Lion-horn Pte Ltd, which already holds a DL for the chain for the western and southern regions of Saudi Arabia.

“The RM1.4 billion capital investment to support the expansion will come from the business operation and the shareholders,” he said.

As for the company’s revenue growth, Azmir said McDonald’s Malaysia had achieved a year-on-year revenue growth of 16% last year and is confident of continuing the trend this year.

Meanwhile, the partnership that was earlier announced would see the fast food operator serving 100Plus at all its branches in the country.

F&N senior VP/group marketing non-alcoholic beverages Khalid Alvi said that 100Plus will be the first F&N product to be served at a quick-service restaurant network in Malaysia.

The beverage manufacturer will be serving 100Plus to a total of 261 McDonald’s restaurants nationwide through the marketing partnership by the two parties.

“The partnership has been two years in the making and follows a four-month trial at 10 McDonald’s outlets in major towns.

“The actual contribution’ from the partnership with the fast food giant will be witnessed in three years,” he added.