McDonald's to expand investment

By Park Ji-won

McDonald’s Korea Managing Director Joe Erlinger speaks during a news conference at the Center Mark Hotel in Insadong, northern Seoul, Wednesday. Courtesy of McDonald’s Korea

McDonald’s Korea said it will invest a total of 100 billion won in Korea this year to expand its market share and support suppliers and partners.

At a news conference at the Center Mark Hotel in Insadong, northern Seoul, Joe Erlinger, the managing director of the U.S. food giant, said that the firm will continue to expand investment in Korea to support so-called shared growth initiated by the Korean government.

“McDonald’s has been operating the business based on the philosophy ‘win-win partnership’ and ‘mutual growth’ entitled “Three-Legged Stool” that enable McDonald’s, suppliers, and franchisees to grow all together as partners,” Erlinger said.

He stressed that McDonald’s pursuit of mutual growth is the key factor behind its success in the global market.

The company plans to invest 100 billion won every year until 2015, aiming to hire more than 25,000 employees.

Joe said the firm has been successful in shared growth, emphasizing that the company procures 80 percent of its food ingredients from the local market.

Erlinger said that the firm plans to expand its outlets to up to 500 from the present 302 by 2015 by putting more effort on shared growth. The firm opened 50 restaurants last year, and is planning to open 60 restaurants this year.

On the issue of the regulations on franchise restaurants that prohibit setting up new restaurants except in multiple purpose buildings, the managing director said the company will follow any law that the local government makes.

He also said it will actively promote its food ingredients on the Korea market to raise customer awareness of the brand product. The firm recently launched a new campaign called “Surprised Moms,” to advertise their product quality.

“Officially launching a quality campaign aims to introduce McDonald’s continuous efforts to adhere to QSC&V (Quality, Service, Cleanliness and Value) concept,” he said.

Melanie Joh, vice president in marketing said, “We have been preparing this promotion for more than one year to change Korean customer awareness of our ingredients.”

“It is the ‘Mom’ who says ‘Don’t eat fast food’, so the firm thought it is important to change the notion from mother to capture its market share,” she added.

The hamburger franchise restaurant, having 25 years of its history in Korea, has never been focused on promoting its ingredients. It also plans to hold a session aimed at promoting its food making system, called “National Open Kitchen Day” that opens the kitchen to customers.