McDonald's Taiwan is looking to boost its stagnating sales by expanding into niche markets and opening "new-concept" outlets. These include a McCafe store in Tienmu and over a dozen McKiosk shops scattered around the nation.
The fast-food giant opened its McCafe-brand outlet last month on Tienmu's Chungcheng Road. The McCafe menu includes rice dishes, panini bread, French toast, English muffins, waffles, along with a variety of snacks and beverages.
Last year, McDonald's Taiwan set up 13 McKiosk carry-out snack bars selling ice cream, milk-shakes, sundaes and beverages.
"In an effort to cope with competition in the local fast food market, we decided to diversify the product line by developing new concept stores," said Ronnie Liao (廖幸安), a McDonald's Taiwan executive.
Poor sales and market saturation forced the Golden Arches to close 15 unprofitable stores and lay off 390 employees in November. McDonald's Taiwan still has 347 stores in operation.
McDonald's Taiwan reported NT$13 billion in sales in 2001, and last year's growth appears to have stagnated at about that same level.
One market watcher said the declining market position has forced McDonald's Taiwan to shift gears.
"McDonald's used to pay very little attention to niche customers when they dominated the mass market," said Shirley Huang (黃淑麗), secretary general of Taiwan Chain Stores and Franchise Association.
But with an increasing number of competitors joining the fast-food market including restaurant chains, individual food stands and convenience stores, McDonald's has no choice but to identify other markets to generate new sales, she said.
The tiny 33m2 McKiosks have been strategically located in downtown areas such as the Hsimenting movie district and the bushiban district near the Taipei Railway Station.
Of McDonald's 13 McKiosks, eight are located directly next to traditional McDonald's restaurants and the other five stand independently.
McCafe is designated to offer a wide selection of food and gourmet coffee in a bistro-like environment to lure customers, Liao said.
The prices fall between traditional McDonald's and coffee shops. For instance, a Cappuccino served in McCafe is priced at NT$80, and a meal set, including a beef curry rice and American coffee, is sold for NT$180.
This is not the first time McDonald's Taiwan has tried new ideas. Last July McDonald's opened up a McSnack restaurant near Taipei Chungshan Middle School Station of the Mucha MRT line.
After poor market acceptance, the outlet was closed five months later.
Despite the setack, executives are confident about McCafe's prospects.
"We've added a wide variety of choices to the McCafe menu," Liao said.
The McCafe's business model may soon be used to set up a McCafe section within traditional McDonald's outlets.
The concept of McCafe was firstly introduced in McDonald's Australia in 1993. There are now more than 300 McCafe's in operation around the world.
Major PC vendors expect a shortage of key components to last another 12 months until the second quarter of next year, when PC demand wanes after two years of robust expansion, a UBS analyst said yesterday. Concern has risen among investors that PC demand could weaken as the US and European economies reopen from COVID-19 lockdowns and gradually return to in-person business activities. At the annual Taiwan Conference that began on Monday, UBS analysts said they had similar discussions with companies in PC supply chains, and the feedback from major PC vendors indicated that demand remained quite strong on the back of
Taiwan and China are to build more new high-volume semiconductor fabrication plants this year and next year than any other country, together contributing more than half of all new fabs in the world by constructing eight each, SEMI said in a quarterly report yesterday. Global chipmakers are to start building 19 new high-volume fabs by the end of this year and another 10 next year to meet accelerating demand for chips from the communications, computing, healthcare, online services and automotive sectors, SEMI, an association that represents the global semiconductor sector, said in its quarterly report. “Equipment spending for these 29 fabs is
MOVING ON UP: Taiwan improved in all four areas measured by the IMD, making its biggest leap, from 17th to sixth place, in economic performance Taiwan moved up three spots from last year to place eighth, its best performance since 2013, in the latest annual world competitiveness rankings, released yesterday by the International Institute for Management Development (IMD). Innovation, digitalization, welfare benefits and social cohesion are critical to economic performance, with Switzerland, Sweden, Denmark, the Netherlands and Singapore making up the top five on the list this year, the Switzerland-based institute said, after grading 64 countries and regions based on economic performance, infrastructure, and government and business efficiency. “Leading performers are characterized by varying degrees of investment in innovation, diversified economic activities and supportive public policy,” IMD
‘MATTER OF SURVIVAL’: Vice Premier Liu He is to lead the development of ‘third-generation’ chips, a field not yet dominated by any nation or company Chinese President Xi Jinping (習近平) is renewing his years-long push to achieve technology self-sufficiency by tapping a top deputy to shepherd a key initiative aimed at helping domestic chipmakers overcome US sanctions. Chinese Vice Premier Liu He (劉鶴), Xi’s economic czar whose sprawling portfolio spans trade to finance and technology, has been tapped to spearhead the development of so-called “third-generation” chip development and capabilities, and is leading the formulation of a series of financial and policy supports for the technology, people with knowledge of the matter said. It is a nascent field that relies on newer materials and gear beyond traditional silicon,