McDonald’s Singapore and Malaysia for sale
In this article (5)
Franchise rights for 20 years for McDonald’s Singapore and Malaysia could fetch S$542.8 million (US$400 million).
The rights have been put on the market as part of McDonald’s Corp’s international turnaround plan put in place by new CEO Steve Easterbrook last year. With a US$112 billion market value, the corporation is revamping its ownership models throughout Asia, including plans to offload its China, Hong Kong and South Korea master franchises.
McDonald’s has adopted a “development licensee model” for Malaysia and Singapore, says a Singapore spokesman. It is negotiating with candidates “committed to helping accelerate growth and innovation in Malaysia and Singapore”.
McDonald’s owns most of its outlets in Asia, and eventually aims to have 95 per cent of its restaurants in the region under local ownership.
Singapore has more than 120 McDonald’s restaurants with about 9000 employees, while in
Malaysia there are more than 250 restaurants.
Questions & Answers
Q.What is the approximate combined value of the McDonald’s Singapore and Malaysia franchise rights?
What is the approximate combined value of the McDonald’s Singapore and Malaysia franchise rights?
The franchise rights for both Singapore and Malaysia could potentially be sold for S$542.8 million, which is equivalent to US$400 million. This figure represents the estimated market value for the 20-year rights.
Q.What is the reason for McDonald’s selling its franchise rights in these countries?
What is the reason for McDonald’s selling its franchise rights in these countries?
The sale is part of McDonald’s Corp’s international turnaround plan, initiated by CEO Steve Easterbrook last year. It aligns with their strategy to revamp ownership models across Asia and increase local ownership.
Q.What ownership model is McDonald’s adopting for its operations in Malaysia and Singapore?
What ownership model is McDonald’s adopting for its operations in Malaysia and Singapore?
McDonald’s is adopting a 'development licensee model' for Malaysia and Singapore. They are currently negotiating with candidates who are committed to accelerating growth and innovation in these markets.
Q.What is McDonald's long-term goal for restaurant ownership in the Asian region?
What is McDonald's long-term goal for restaurant ownership in the Asian region?
The corporation's long-term aim is to have 95 per cent of its restaurants in the Asian region operating under local ownership. This is a significant shift from their current model where they own most outlets.
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