McDonald´s might be in China for decades, it still has problems to adjust to the fast changing realities on the ground, says business analyst Shaun Rein to QZ. They now decided to increase their franchises and leave the cooking to people who better know the Chinese taste, says Shaun Rein, and that seems a smart idea.
“McDonald’s is in trouble in China because it doesn’t have the type of food or brand position that Chinese consumers want right now,” says Shaun Rein, founder of the China Market Research Group. “There’s a lot more competition from Chinese chains like Kung Fu or Japanese noodle chains like Asijen, or from western brands like Starbucks. ”
Starting in 2014, growth slowed for several quarters, based on same-store sales, in the US and in “High Growth Markets” (formerly known as Asia Pacific, Middle East, and Africa)….
The downside to franchising in China is that the company will lose control over things like intellectual property, food sourcing, and service quality. But a good local partners could help the brand revive in Asia quicker than McDonald’s can do on its own, analysts say.
“In order to reinvigorate growth it needs a new business model for the country,” says Rein. “The best way to do that is to partner with folks who might know the China market a little better,” and have more money to spend.
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