McDonald’s Corp., based in Chicago, Illinois, has entered into a multi-unit franchise arrangement with Golden Arches Development Corp. (GADC), its Chairman & Founder George T. Yang, and President & CEO Kenneth S. Yang for a new 20-year franchise period in the Philippines extending to 2045.
During the franchise renewal celebration at McDonald’s Quezon Avenue Ligaya outlet on April 4, Mr. Kenneth S. Yang of GADC reflected on the firm’s accomplishments since acquiring franchising rights in 1981, and he also discussed several of the organization’s objectives for the near future.
The American fast-food powerhouse experienced notable growth in the country last year, adding 65 new outlets, established in partnership with its sub-franchisees. Mr. Yang disclosed that McDonald’s Philippines concluded the previous year with a total of 792 locations nationwide and is ready to inaugurate its 800th outlet shortly. This ongoing expansion illustrates McDonald’s dedication to enhancing its presence across more communities in the Philippines.
“We are extremely thankful for the trust and confidence that McDonald’s Corp. has in us and in our market as one of the leading McDonald’s markets in the globe,” Mr. Yang remarked during his address.
“This accomplishment strengthens our commitment to development and the stewardship of this globally recognized brand. This new licensing term is awarded to my father (McDonald’s Philippine Founder George T. Yang) and me, enabling us to own and also sub-franchise McDonald’s outlets across the nation.”
Creating various opportunities
With the opening of each restaurant, McDonald’s creates 80 to 100 new job opportunities — primarily benefiting local communities and offering employment for various demographics. Currently, McDonald’s Philippines employs approximately 65,000 individuals nationwide, many of whom are young team members. Mr. Yang considers this as a crucial contribution to nation-building and improving local communities.
“One of the aspects we take pride in is that when we launch a restaurant, we generate 80 to nearly 100 new positions there. And we not only provide jobs but also offer them learning experiences, as well as the soft and technical skills they require for their futures,” he stated.
The organization also champions diversity and inclusion as core principles. It provides employment opportunities to individuals irrespective of gender, race, age, or background. McDonald’s Philippines collaborates with local government units to assist disabled individuals, senior citizens, and out-of-school youth, ensuring that all segments of society can access avenues for growth and development.
“We truly value diversity and inclusion at McDonald’s; and for us, it is irrelevant — gender, race, age, or background. That’s why we foster diverse opportunities within McDonald’s. So, when [those opportunities arise], we’re there for them,” Mr. Yang added.
Maintaining quality
Over the years, McDonald’s Philippines has gained a reputation for its high standards and delicious food and beverages, paired with friendly and prompt service in a contemporary and hygienic environment. In 1986, George T. Yang, founder and chairman of GADC, introduced Chicken McDo and McSpaghetti to McDonald’s primarily Western menu to better cater to the unique taste preferences of the Filipino market.
Since that time, the company has enhanced popular offerings such as its Big Mac, cheeseburgers, and other sandwiches; the larger, juicier, and crispier Chicken McDo; and the globally acclaimed French Fries. GADC has also incorporated now-local favorites into their menus, including the Coke Float, desserts like the McFlurry and Sundaes, as well as the richer and creamier McCafé Iced Coffee.
McDonald’s Philippines has also focused on enhancing its customers’ omnichannel experience by providing multiple convenient means to enjoy their meals. Alongside in-store dining and front counter service, the fast-food chain operates 500 to 600 drive-thrus nationwide. Customers can also utilize McDelivery and digital services via the McDonald’s App, ensuring patrons receive the enjoyable moments they seek.
Illuminating hopeful possibilities
Beyond business growth, McDonald’s Philippines has prioritized giving back to local communities where they operate. Since 1996, they have run a local branch of Ronald McDonald House Charities (RMHC). One of the chapter’s essential programs is the Ronald McDonald Bahay Bulilit, a daycare initiative for underserved communities.
Currently, there are 47 Bahay Bulilit centers in operation, each assisting around 100 children and their families. The company also manages the Read to Learn program, which provides educational kits to public schools. To date, it has collaborated with 11,000 schools, benefiting over 13 million students throughout the Philippines.
“Well, I believe that due to our conviction, it’s our philosophy of giving back to the communities that we engage. We’re not just here to make a profit; we’re here to contribute to nation-building and also to help our employees evolve and enhance their skills. So that’s really our goal — illuminating the arches for brighter possibilities,” Mr. Yang stated.
Sustainability is also assuming a progressively significant role in McDonald’s operations. Through its Green & Good initiative, the company constructs outlets using environmentally friendly building materials and energy-efficient practices. Additionally, the company has implemented numerous changes to their packaging to promote sustainability, minimize waste, and encourage an active lifestyle in some of their establishments.
“We even have this new initiative: When you visit our restaurants, sometimes we need to renovate them and modernize them. So, we take the old furnishings… we refurbish them, and convert them into school essentials,” Mr. Yang added.
The coming 20 years
With its robust foundation in growth, inclusivity, innovation, and social responsibility, McDonald’s Philippines has become increasingly promising, more engaged, and more purposeful in its mission to serve the Filipino people beyond meals. As it embarks on a renewed 20-year franchise agreement, McDonald’s Philippines looks forward with renewed enthusiasm to broaden its impact and provide even more meaningful experiences to Filipinos.
“So as we welcome another 20 years of McDonald’s, we are dedicated to delivering more enjoyable moments for our customers, our staff, and the communities across the nation. At McDonald’s Philippines, beyond a sign or a logo, the luminous “M” represents that the best is yet to unfold. It’s a symbol of excellence Filipinos deserve, and that we are here to provide,” Mr. Yang concluded.
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