McDonald’s franchisee to expand McCafe

Golden Arches Development Co. (GADC), the Philippine franchise holder of the US-based McDonald’s Corp, is going full blast this year with the expansion of McCafe, its coffeeshop retail business.

The company plans to set up five McCafe stores this year, each costing P3 million to P5 million, as part of efforts to boost income. These stores are in addition to the first McCafe at the third level of the Glorietta Center in Makati, which was established more than a decade ago.

"We plan to continue to rapidly expand McCafe retail operations and selectively pursue opportunities to leverage the McDonald’s brand through the introduction of new products and the development of new distribution channels," GADC executive vice-president Kenneth S. Yang said.

There are now 305 McCafe stores worldwide, located mainly in Australia, Hongkong, Japan, Taipei and United States.

The new McCafe stores are expected to open in Eastwood City in Libis, Quezon City, and Greenbelt in Makati.

"McCafe is McDonald’s fresh approach to growth and innovation. We are reaching out to new consumers that would frequent to McCafe as much as for their ambience as for their food," Yang said.

McCafe will serve cinnamons, brownies, cheesecakes, black forest and other similar pastries readily available with coffee favorites such as cappuccino, latte, mocha or espresso.

"Our markets are focused on those things that make McCafe more of a destination and the preferred eating-out choice, inspiring great coffee moments whether for oneself or with company, by upgrading our decors and making our menu more relevant," Yang said.

Encouraged by the new retail trade law which makes it easier for foreign-owned corporations to do business in the Philippines, the Delaware-based McDonalds Corp. has raised its investment in GADC by $1.5 million (roughly P80 million).

GADC is a joint venture between McDonalds, the world’s largest hamburger chain and McGeorge Food Industries Inc. of businessman George Yang. It leases and manages the properties that house the McDonalds restaurants. McGeorge and GADC eventually merged their operations to create a unified and more efficient single business with GADC as the surviving entity.

In 1981, McDonald’s opened its first store in the Philippines in the University belt in Morayta.