McDonald’s Corp is looking to sell its 350 branches in Taiwan to potential franchisees as part of the US fast-food chain’s global turnaround plan, according to a company statement released yesterday.
That would put an end to its 31-year tradition of company-owned stores in this nation.
A lackluster performance in Taiwan led McDonald’s to consider selling a 90 percent stake in its local operation to potential franchisees, who would be required to sign a 20-year franchise contract, a reliable source said.
Photo: Chu Pei-hsiung, Taipei Times
McDonald’s said in a statement that its decision was in line with its turnaround plan unveiled last month, which includes a restructuring of its international business.
McDonald’s said it is seeking suitable local franchisees.
“Ideal candidates would have strong operational capabilities and a full understanding of the Taiwanese market,” the statement said.
“This plan is still in the preliminary stage. We do not have further information at the moment,” McDonald’s said. “No organizational restructuring will occur during the process of the [ownership] transfer. McDonald’s is not planning to exit the Taiwanese market.”
The Chinese-language Business Weekly yesterday reported that McDonald’s told local employees during an internal meeting on June 12 about the plan. The report said McDonald’s could secure a deal by the end of this year at the earliest.
McDonald’s might sell its local operation to foreign buyers, as local food conglomerate Uni-President Enterprises Corp (統一企業) might not be on its short list, the report said.
McDonald’s outlets in Taiwan employ about 16,000 people.
The Ministry of Economic Affairs’ Investment Commission said it has not received any applications from McDonald’s to withdraw its investment from Taiwan.
If McDonald’s wishes to pull out its NT$2.756 billion (US$88.75 million) investment, it would have to submit such an application, and potential franchisees would also have to submit applications for deliberation, commission official Yang Shu-ling (楊淑玲) told a media briefing in Taipei.
The Department of Commerce said it is common for US fast-food chains to adjust the proportion of company-owned or franchisee-run stores.
“McDonald’s decision does not mean it has lost faith in Taiwan’s investment environment,” department Director-General Cynthia Kiang (江文若) said.
The company’s move shows that Taiwan is a mature market, the department said in a statement.
Additional reporting by Lauly Li
MISINFORMATION: The generated content tends to adopt China’s official stance, such as ‘Taiwan is currently governed by the Chinese central government,’ the NSB said Five China-developed artificial intelligence (AI) language models exhibit cybersecurity risks and content biases, an inspection conducted by the National Security Bureau (NSB) showed. The five AI tools are: DeepSeek, Doubao (豆包), Yiyan (文心一言), Tongyi (通義千問) and Yuanbao (騰訊元寶), the bureau said, advising people to remain vigilant to protect personal data privacy and corporate business secrets. The NSB said it, in accordance with the National Intelligence Services Act (國家情報工作法), has reviewed international cybersecurity reports and intelligence, and coordinated with the Ministry of Justice Investigation Bureau and the National Police Agency’s Criminal Investigation Bureau to conduct an inspection of China-made AI language
LIMITS: While China increases military pressure on Taiwan and expands its use of cognitive warfare, it is unwilling to target tech supply chains, the report said US and Taiwan military officials have warned that the Chinese People’s Liberation Army (PLA) could implement a blockade within “a matter of hours” and need only “minimal conversion time” prior to an attack on Taiwan, a report released on Tuesday by the US Senate’s China Economic and Security Review Commission said. “While there is no indication that China is planning an imminent attack, the United States and its allies and partners can no longer assume that a Taiwan contingency is a distant possibility for which they would have ample time to prepare,” it said. The commission made the comments in its annual
‘TROUBLEMAKER’: Most countries believe that it is China — rather than Taiwan — that is undermining regional peace and stability with its coercive tactics, the president said China should restrain itself and refrain from being a troublemaker that sabotages peace and stability in the Indo-Pacific region, President William Lai (賴清德) said yesterday. Lai made the remarks after China Coast Guard vessels sailed into disputed waters off the Senkaku Islands — known as the Diaoyutai Islands (釣魚台) in Taiwan — following a remark Japanese Prime Minister Sanae Takaichi made regarding Taiwan. Takaichi during a parliamentary session on Nov. 7 said that a “Taiwan contingency” involving a Chinese naval blockade could qualify as a “survival-threatening situation” for Japan, and trigger Tokyo’s deployment of its military for defense. Asked about the escalating tensions
DISPUTE: A Chinese official prompted a formal protest from Tokyo by saying that ‘the dirty head that sticks itself out must be cut off,’ after Takaichi’s Taiwan remarks Four armed China Coast Guard vessels yesterday morning sailed through disputed waters controlled by Japan, amid a diplomatic spat following Japanese Prime Minister Sanae Takaichi’s comments on Taiwan. The four ships sailed around the Senkaku Islands — known as the Diaoyutai Islands (釣魚台) to Taiwan, and which Taiwan and China also claim — on Saturday before entering Japanese waters yesterday and left, the Japan Coast Guard said. The China Coast Guard said in a statement that it carried out a “rights enforcement patrol” through the waters and that it was a lawful operation. As of the end of last month,
RSS