McDonald’s Corp., headquartered in Chicago, Illinois, has entered into a multi-unit franchise agreement with Golden Arches Development Corp. (GADC), its Chairman & Founder George T. Yang, and President & CEO Kenneth S. Yang for a new 20-year franchise term in the Philippines until 2045.
During the franchise renewal event at McDonald’s Quezon Avenue Ligaya branch on April 4, Mr. Kenneth S. Yang of GADC reminisced about the company’s achievements since being granted franchising rights in 1981, and he also shared some of the company’s aims in the foreseeable future.
The American fast-food giant achieved significant growth in the country last year adding 65 new restaurants, built in collaboration with its sub-franchisees. Mr. Yang revealed that McDonald’s Philippines ended last year with a total of 792 stores nationwide and is poised to open its 800th store soon. This continued expansion reflects McDonald’s commitment to making its presence felt across more communities in the Philippines.
“We are very grateful for the trust and confidence that McDonald’s Corp. has in us and our market as one of the top McDonald’s markets in the world,” Mr. Yang said during his speech.
“This milestone solidifies our commitment to growth and the stewardship of this world-famous brand. This new term license is granted to my father (McDonald’s Philippine Founder George T. Yang) and me, allowing us to own and also sub-franchise McDonald’s restaurants all throughout the country.”
Opening diverse opportunities
With every store that opens, McDonald’s generates 80 to 100 new jobs — primarily benefiting local communities and providing employment opportunities for different groups of people. Today, McDonald’s Philippines employs around 65,000 individuals nationwide, many of whom are young crew members. Mr. Yang views this as a vital contribution to nation-building and uplifting local communities.
“One of the things we pride ourselves on is that when we open a restaurant, we add 80 to almost 100 new jobs there. And we not only provide jobs, but we also provide them learning experiences, and the soft skills and technical skills they need for their future,” he said.
The company also upholds diversity and inclusion as fundamental values. It offers employment opportunities to individuals regardless of gender, race, age, or background. McDonald’s Philippines works with local government units to support persons with disabilities, senior citizens, and out-of-school youth, ensuring that all sectors of society have access to opportunities for growth and development.
“We really value diversity and inclusion in McDonald’s; and for us, it doesn’t matter — gender, race, age, or background. That’s why we have diverse opportunities in McDonald’s. So, when [those opportunities come], we’re there for them,” Mr. Yang added.
Upholding quality
Over the years, McDonald’s Philippines has been renowned for its quality and great tasting food and beverages, and warm and fast service in a modern and clean environment. In 1986, George T. Yang, founder and chairman of GADC, added Chicken McDo and McSpaghetti to McDonald’s largely Western menu to better suit the distinct taste preferences of the Filipino market.
Since then, the company has improved popular items such as its Big Mac, cheeseburgers, and other sandwiches; the bigger, juicier, and crispier Chicken McDo; and the world-famous French Fries. The GADC also added what are now Filipino favorites in their menus, including the Coke Float, desserts like the McFlurry and Sundaes, as well as the bolder and creamier McCafé Iced Coffee.
McDonald’s Philippines has also worked on elevating its customers’ omnichannel experience, offering multiple convenient ways to enjoy their meals. In addition to in-store dining and front counter service, the fast-food company operates 500 to 600 drive-thrus across the Philippines. Patrons can also access McDelivery and digital services via the McDonald’s App, ensuring customers are given the feel-good moments that they desire.
Illuminating brighter possibilities
Beyond business expansion, McDonald’s Philippines has prioritized giving back to local communities where they are present. Since 1996, it has operated a local chapter of Ronald McDonald House Charities (RMHC). One of the chapter’s key programs is the Ronald McDonald Bahay Bulilit, a daycare initiative for underserved communities.
Currently, there are 47 Bahay Bulilit centers in operation, each supporting around 100 children and their families. The company also runs the Read to Learn program, which provides learning kits to public schools. To date, it has partnered with 11,000 schools, benefitting over 13 million students all over the Philippines.
“Well, I think because of our belief, it’s our philosophy of giving back to the communities that we serve. We’re not just here to profit; we’re here to participate in nation-building and also to help our employees to grow and upskill. So that’s really our purpose — illuminating the arches for brighter possibilities,” Mr. Yang said.
Sustainability is also playing an increasingly important role in McDonald’s operations. Through its Green & Good initiative, the company constructs stores using green building materials and energy-efficient solutions. Additionally, the company has made a lot of changes to their packaging to ensure sustainability, reduce waste, and encourage an active lifestyle in some of their restaurants.
“We even have this new program: When you see our restaurants, sometimes we have to renovate them and make them modern. So, we take the old furniture… we change them, and make them school staples,” Mr. Yang added.
The next 20 years
Through its strong foundation in growth, inclusivity, innovation, and social responsibility, McDonald’s Philippines has become much more promising, much more involved, and much more purposeful in its mission to serve the Filipino people beyond meals. As it enters a renewed 20-year franchise term, McDonald’s Philippines looks ahead with renewed passion to expand its impact and deliver even more meaningful experiences to Filipinos.
“So as we usher in another 20 years of McDonald’s, we are committed to delivering more feel-good moments for our customers, our people and the communities all over the country. At McDonald’s Philippines, more than a sign or a logo, the glowing “M” symbolizes that the best is yet to come. It’s a mark of excellence Filipinos deserve, and that we are here to serve,” Mr. Yang concluded.
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