China Business

Nov 19, 2005

McDonald's adapting to Chinese tastes

BEIJING - McDonald's is changing its mode of business in China to better adapt to the diversity of Chinese tastes, according to a Chinese newspaper.

It will divide its business in China into four zones, increasing the east and central zones on the basis of the previous two zones of the south and north, the First Financial Daily reported recently. Jeffrey Schwartz, newly-appointed president of McDonald's China,

said 80% of the menu of the four zones will be the same and other 20% are allowed to be different in order to reflect regional tastes. He also said McDonald's will open outlets in more areas in the future to make McDonald's food accessible to more customers.

According to sources with McDonald's China, the first McDonald's drive-through restaurant will open in Dongguan, in south China's Guangdong province, in December. More such outlets will open in all four zones in the future.

A McDonald's in Pudong, Shanghai (photo: Wikipedia)

Analysts here say the reforms are necessary for McDonald's to maintain its popularity in the Chinese market. As Chinese people become more careful about nutrition and health concerns, McDonald's must prove its foods are pleasing both to their eyes and stomach. McDonald's competitor KFC, which opened its 1,500th restaurant in China last month, has introduced a series of Chinese foods into its menu and removed potato chips from set meals.

(Asia Pulse/XIC)

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