Golden Arches Development Corp. president George T. Yang said the group plans to set up 15 to 20 new stores this year to maintain double-digit growth in sales. Half of the new stores to be opened, he said, would be franchised.
Golden Arches is a 50-50 joint venture between Yang and McDonalds, the worlds largest hamburger chain. It leases and manages the properties that house the McDonalds restaurants.
Yang said funding for the groups expansion will come from internally-generated cash. McDonalds now operates 240 restaurants in the Philippines compared with Jollibees 988 stores.
He said the companys performance for the first half this year has been very strong, bolstered by increase in food purchases during political campaigns in the lead up to the May national elections.
"Our performance has been quite good. Were hopeful that the political situation will stabilize because this will be good for everybody," Yang said.
Yang said the company sees the need to close down unprofitable stores to cut on costs and enhance operating efficiency.
The Philippines is one of the rare countries whose homegrown fast food retailer has bested the McDonalds franchise holder.
The rivalry between McDonalds and Jollibee has been hot over the year, battling for consumer loyalty by outdoing each other in celebrity endorsements, value-meals, and promotional toys.
GADC has been aggressive in expanding McCafe, its coffeeshop retail business. It opened five McCafe stores last year, with each costing P3 million to P5 million.
There are 305 McCafe stores worldwide, including Australia, Hong Kong, Japan, Taipei and United States.
McCafe serves cinnamon, brownies, cheesecake, blackforest and other similar pastries readily available with coffee favorites such as cappuccino, latte, mocha or espresso.
Bullish about its investment in the Philippines and encouraged by the new retail trade law which makes it easier for foreign-owned corporations to do business in the Philippines, McDonalds Corp. has raised its investment in Golden Arches by $1.5 million (roughly P80 million).
In light of this, McGeorge and GADC merged their operations to create a unified and more efficient single business. GADC was the surviving entity.
Inspite of the merger, the entire senior management team of McDonalds operations in the Philippines remained intact.
In 1981, McDonalds opened its first store in the Philippines in Morayta in the University Belt.