The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Netflix apologizes for filming 'Single's Inferno 3' in marine sanctuary

  • 3

    In-N-Out Burger pop-up store attracts record crowd

  • 5

    Calls grow for female flight attendants to ditch skirts for pants

  • 7

    Hamburger franchises having trouble in M&A market

  • 9

    Man gets five-year jail term for K-pop concert ticket fraud

  • 11

    Suspect in grisly Busan murder sent to prosecutors for further probe

  • 13

    Small business owners urge stricter rules on migrant workers switching jobs

  • 15

    Nexon case reignites controversy over high level of inheritance tax

  • 17

    Pandas at Everland become tourist magnet

  • 19

    S. Korea succeeds in L-SAM missile interception test for 3rd time

  • 2

    BTS' RM named honorary ambassador of war-remains excavation agency

  • 4

    'BLACKPINK the Game' showcases group's unique charm

  • 6

    EXO's Baekhyun, Xiumin and Chen in dispute with SM over contract issue

  • 8

    Transgender cyclist looks to spark debate in historic appearance

  • 10

    Pyongyang seeks to portray rocket as science effort by admitting failure: experts

  • 12

    Hallyu inspires Thailand to mull ways to export its culture

  • 14

    Police send girlfriend murder suspect to prosecution

  • 16

    From hardcore action to heart-throbbing romance, series to hit in June

  • 18

    Stray Kids drops 3rd LP with 'unique, enjoyable' lead track

  • 20

    JYP to expand partnership with US music label

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Sat, June 3, 2023 | 16:45
Business
McDonald's Korea plans flip to franchise business
Posted : 2016-04-15 15:49
Updated : 2016-04-15 19:01
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
By Choi Sung-jin

McDonald's is planning to close its directly-managed stores in Korea, Japan and Taiwan and turn them into franchise outlets, industry sources said.

The world's largest chain of fast food hamburger restaurants plans to sell McDonald's Korea, in consultation with Morgan Stanley, they said. It was the second schedule of business realignment, following one on March 31, when the company was known to be seeking strategic partners to operate jointly its corporate entities in Japan and Taiwan.

McDonald's has been directly managing most of its stores in Asia so far. If and when it selects franchise partners, however, the U.S. fast food giant is highly likely to sell most of its stakes or turn them into joint ventures, just receiving commissions as royalties from affiliated stores, they said.

Industry analysts said that recently sluggish sales in the three East Asian countries might have forced the company to consider an "exit strategy" in the form of closing directly-managed stores.

McDonald's has been reeling from a sales setback in this part of the world over the past decade, with its regional turnover falling 10 percent from 2014 to $6.17 billion last year. Not only has its sales dropped but the company was embroiled in various "unfavorable incidents" in the past few years. In China, a problem arose over chicken in 2014 while the discovery of some debris in hamburgers has reduced sales in Japan by more than 10 percent in the past couple of years.

In Korea, it has come into conflict with unionized part-timers over the minimum wage and poor work environment. A case in point is the unionists' demand for abolishing the "45-second-hamburger" rule, which forces workers to make a hamburger in 45 seconds.

The fast food hamburger restaurant business has lost much of its growth impetus because of the emergence of various local brands and homemade burgers, the analysts said.

A company official said McDonald's is not withdrawing from the Korean market but is shifting to a franchise business because its Korean business has entered a stabilizing stage.

"Korean consumers may be unfamiliar with our shift to the franchise business system because McDonald's has been directly managing almost all its stores here," a company executive said. "Actually, however, we have been engaged in diverse types of franchise businesses in the United States and elsewhere."

The company is just readjusting its operation to analyze the Asian market and enhance its growth potential, he said. "This is far from retrenchment or withdrawal, because we still think Asia is the market with greatest growth potential," he said.

McDonald's is reportedly planning to open to 500 stores in China this year.

Emailchoisj@ktimes.com Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1Roland Garros 2023 Roland Garros 2023
2Airlines fiercely compete to acquire additional aircraft Airlines fiercely compete to acquire additional aircraft
3Seoul imposes sanctions on North Korean hacking group for role in space launch Seoul imposes sanctions on North Korean hacking group for role in space launch
4More banks offer daily interest payments on deposits More banks offer daily interest payments on deposits
5KAERI distances itself from Oxford professor's claim on Fukushima water KAERI distances itself from Oxford professor's claim on Fukushima water
6POSCO, GM expand joint EV battery materials investment in North America POSCO, GM expand joint EV battery materials investment in North America
7HMM tasked with preventing sale of Hyundai LNG to foreign firm HMM tasked with preventing sale of Hyundai LNG to foreign firm
8LG Chem joins Korean firms strengthening ties with Japan LG Chem joins Korean firms strengthening ties with Japan
9Hyundai Elevator launches AI, IoT-powered maintenance service Hyundai Elevator launches AI, IoT-powered maintenance service
10Indo-Pacific region highlighted as important for Korean economy's future Indo-Pacific region highlighted as important for Korean economy's future
Top 5 Entertainment News
1'HyeMiLeeYeChaePa' producer Lee Tae-kyung hopeful of second season 'HyeMiLeeYeChaePa' producer Lee Tae-kyung hopeful of second season
2How artist Michael Rakowitz resurrects lost past of Iraq through food packaging How artist Michael Rakowitz resurrects lost past of Iraq through food packaging
3[INTERVIEW] 'One Day Off' star Lee Na-young, director on creating subtle, feel-good series INTERVIEW'One Day Off' star Lee Na-young, director on creating subtle, feel-good series
4From hardcore action to heart-throbbing romance, series to hit in June From hardcore action to heart-throbbing romance, series to hit in June
5[INTERVIEW] Lee Jun-hyuk unrecognizable in 'The Roundup: No Way Out' INTERVIEWLee Jun-hyuk unrecognizable in 'The Roundup: No Way Out'
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group