McDonald’s has announced plans to open over 200 new restaurants in the United Kingdom and Ireland, which is expected to create more than 24,000 jobs. Along with the expansion, the fast-food chain will be testing new restaurant formats, such as “drive to” and smaller stores, as well as building restaurants in town and city centers. This initiative is part of a larger global goal to open 10,000 more restaurants worldwide by the end of 2027, bringing McDonald’s total number of stores to 50,000.
Alistair Macrow, the CEO of McDonald’s UK & Ireland, highlighted the evolution of the company over the past 50 years since its first store opened in the UK. He noted the changes in how customers can place their orders, with 11 different options now available. The growth planned in the UK represents a significant increase of around 14% in the number of McDonald’s stores and employees in the country, with an accompanying investment of £1 billion ($1.3 billion).
Despite a recent global slowdown in business, McDonald’s is moving forward with confidence in its future prospects. Sales at McDonald’s stores open for at least a year saw a 1% decline in the April-June quarter of 2023, marking the first time since the end of 2020 that sales dropped by that measure. This decline was driven by fewer customers visiting the company’s restaurants, particularly in the US where sales fell by 0.7%.
Food prices have been on the rise in the United States, with a significant portion of that increase coming from dining out at restaurants and fast-food establishments rather than grocery stores. This shift has made eating out more of a luxury for many consumers. McDonald’s has faced criticism in the US, with a viral social media post showing an $18 Big Mac meal sparking backlash against perceived corporate greed exacerbating inflation. The company’s president has since apologized and urged franchisees not to set unusually high prices.
In the UK, McDonald’s has faced competition from Greggs, a chain of budget bakeries, which overtook McDonald’s as the market leader in food-to-go breakfasts last year. Despite these challenges, McDonald’s remains committed to its expansion plans in the UK and Ireland with the opening of new restaurants and job opportunities. The company’s investment in new restaurant formats and locations reflects its continued evolution and adaptation to changing consumer preferences and market dynamics. The £1 billion investment underscores McDonald’s long-term commitment to growth and success in the region.
