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(Third from left) GADC President and CEO Kenneth Yang and GADC Founder and Chairman George Yang (Dexter Barro II/MANILA BULLETIN)
McDonald's Philippines, operated by Golden Arches Development Corp. (GADC), has signed a new 20-year franchise term with Chicago-based McDonald's Corp., ensuring its continued operations in the country until 2045.
Under the agreement inked last month, GADC is granted the license to own, develop, and operate McDonald's restaurants in the Philippines.
This allows the company to continue engaging in the sub-franchising of restaurants under the McDonald's brand, in accordance with the multi-unit franchise agreement with McDonald's Corp.
GADC Chairman and Founder George Yang has held the master franchise of the Golden Arches since the opening of the first McDonald's store in the country in Manila in 1981.
"The new term license granted to us by McDonald's Corp. is a bold statement of our collective ambition, as we remain committed to serve as a beacon of growth, opportunity, and shared moments with every Filipino family," said Yang.
After introducing 65 new stores last year, McDonald's Philippines ended 2024 with a network of 792 stores nationwide, making it one of the fastest-growing McDonald's markets in the world.
There are over 100 independent entrepreneurs who operate McDonald's stores as sub-franchisees, enabling the American fast-food chain to be present in more local communities.
With its new term license secured, Yang envisions the next 20 years to be a "period of accelerated growth" for the quick-service restaurant (QSR) giant.
"We take pride in the positive impact we make every time we open a McDonald's store. With every store that we open, we are able to signal market readiness and growth in an area, provide direct employment, and contribute to nation building," he said.
GADC President and Chief Executive Officer (CEO) Kenneth Yang, son of George Yang, sees further growth coming from outside Metro Manila.
The younger Yang said the company is keen on ramping up its store openings this year, with the goal of bringing McDonald's closer to Filipinos across various regions.
This commitment to growth, he said, is underpinned with a commitment to customer experience.
With the advent of emerging technologies, McDonald's Philippines is expected to heavily invest in the further improvement of its customer service.
"Our digital transformation journey has enabled us not just to scale the business and serve more customers, but it has improved how we do it," said Kenneth Yang.
"We are not stopping with these platforms and solutions, more so, continuously working on opportunities coming from evolving customer preferences and behaviors," he added.
McDonald's Philippines pioneered a number of technologies in the QSR industry.
It was the first QSR company to have an online delivery channel in 2009, the first to launch a company-specific delivery application in 2014, and now one of the biggest merchants in third-party delivery aggregators since 2018.
GADC has attributed its continued success to remaining relevant to the changing needs of the customer.
