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
TAIWAN PROTECTION MEASURE: US Army General Charles Flynn would not say where in the Asia-Pacific the missiles would be sent, but only that they would arrive in 2024 The US is to send medium-range missiles including the Standard Missile 6 (SM-6) and Tomahawk to the Asia-Pacific next year to deter a Chinese attack on Taiwan, US military news Web site Defense One reported. The report cited comments US Army General Charles Flynn made during the annual Halifax International Security Forum on Nov. 19. “We have tested them and we have a battery or two of them today,” Flynn was quoted as saying. “In [20]24. We intend to deploy that system in your region. I’m not going to say where and when. But I will just say that we will
UNUSUAL UPTICK: There are more flu-like illnesses in northern China than in the past 3 years, but data from Beijing showed that known pathogens are responsible Responding to an uptick in respiratory illnesses in China, the Centers for Disease Control (CDC) yesterday said it has instructed international airport and port quarantine centers to raise their alert levels, and plans to issue an alert to healthcare practitioners. The number of flu-like illnesses reported in northern China has been increasing for five consecutive weeks, and is higher than the same period in the past three years, CDC Deputy Director-General Philip Lo (羅一鈞) said. “According to the WHO’s latest statement, issued yesterday, information provided by Chinese government showed that the illnesses were mainly reported among children, and the illnesses were attributed
LOYALTY: The 10 active and retired soldiers betrayed the nation and its people by leaking and passing on military secrets to China, the High Prosecutors’ Office said Ten former and current military officers were yesterday indicted on charges of spying for China, including two who allegedly filmed themselves pledging loyalty to Beijing. The High Prosecutors’ Office requested life imprisonment for the suspects in light of the severity of the crime. The 10 active-duty and retired officers included members of the 601st Brigade of the Aviation Special Forces comprising attack helicopter squadrons and elite combat units in charge of defending northern Taiwan, including Taipei. The other suspects came from Huadong Defense Command, in charge of defending the eastern coast; Kinmen Defense Command, in charge of defending Kinmen and Matsu; and one
THREE-WAY RACE: Hou You-yi said until the last minute he hoped to run with Ko Wen-je, but the latter did not pick up the phone when he called to make a final pitch The Chinese Nationalist Party (KMT) and Taiwan People’s Party (TPP) registered their own candidates yesterday after a breakdown in coalition talks, while independent candidate Terry Gou (郭台銘) dropped out, setting up a three-way race for the presidential election in January. TPP Chairman Ko Wen-je (柯文哲) was the first to officially register his candidacy with the Central Election Commission in Taipei yesterday, shortly after naming TPP Legislator Cynthia Wu (吳欣盈) as his running mate. Wu, the daughter of former Shin Kong Financial Holding Co (新光金控) chairman Eugene Wu (吳東進), is a TPP legislator-at-large who was appointed in November last year and had served