Kenneth Yang looks back on McDonald’s PH operations amid fresh franchise

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McDonald’s Philippines' president and CEO Kenneth Yang was 16 years old when his father was granted a 45-year franchise to bring the fast food giant to the country

Golden Arches Development Corporation (GADC) president and chief executive officer Kenneth Yang may call the shots at McDonald’s Philippines today. But at a press conference on Friday, April 4, he reminisced on his humble start as a crew member for the fast food giant.

Kenneth is the son of George Yang, GADC’s founder and chairman, and the holder of the master franchise to McDonald’s since 1981.

The younger Yang was only 16 when his father was granted a 45-year master franchise to own, develop, operate and sub-franchise McDonald’s restaurants in the Philippines.

Kenneth recalled working as a crew member in McDonald’s second branch at the New Frontier Theater in Quezon City during his late teens.

Despite being the owner’s son, Kenneth recalled being tasked with mopping floors, cleaning comfort rooms, and manning the counters. As an introvert, the younger Yang said the customer-facing nature of the job helped boost his confidence.

“Actually, that was scary for me to work in front of the counter, and to even say to people, ‘Welcome to McDonald’s,’” he admitted.

Kenneth was also paid the same P6 hourly wage that his fellow crew members received at the time. He recalled using his first paycheck for a Saturday lunch out with his friends.

In its earlier years, McDonald’s Philippines’ menu included the global core menu items. But in 1986, George introduced the iconic Chicken McDo and McSpaghetti to cater to the Filipino palette.

FIRST BRANCH. McDonald’s first Philippine branch in Morayta, Manila City. Photo courtesy of McDonald’s Philippines

The Yangs cited GADC’s commitment to its customers’ needs as a driver to McDonald’s success in the Philippines.

“If you focus on the customer, you will not go wrong,” George said.

The next 20 years

Since opening the first McDonald’s branch in Morayta, Manila in 1981, McDonald’s Philippines has expanded its network to 792 stores nationwide. The company is poised to open its 800th branch within the year.

Working students comprise 70% of its 58,000 crew members. The company said it currently employs some 65,000 workers nationwide — all direct hires.

“My father has always stressed, from the beginning, we would directly hire our employees, and really give them the world-class training and development that McDonald’s is famous for,” Kenneth said.

“So when they do that, they learn, and either they stay in McDonald’s and progress from there, or they may transfer to other careers and become successful.”

McDonald’s Philippines also became a fully Filipino-owned company in 2005, with the Yangs as majority owners and Andrew Tan’s Alliance Global Group as an investment partner. 

The father and son duo were recently granted a new 20-year license term to operate McDonald’s restaurants in the country.

For Kenneth, the fresh franchise is a sign that the best is yet to come for the restaurant chain.

While the McDonald’s Philippines chief did not disclose specific figures, he said the company expects to sustain the double-digit growth in its topline. The company spends up to P70 million to open new restaurants.

The younger Yang is also optimistic they will open the 1,000th McDonald’s store in the Philippines in the next two to three years.

“What’s exciting is we’re growing farther and farther out from Manila, and we’re reaching places farther in the north, farther in the south. So, for me, that’s very exciting,” he said. – Rappler.com