Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
McDonald’s will open more than 200 new restaurants in the UK and Ireland over the next four years as part of a £1bn expansion aimed at boosting the fast-food chain’s presence on the high street.
The group said the investment from the company and its franchisees would create more than 24,000 jobs, adding to the 1,435 McDonald’s outlets in the UK which employ 171,415 people.
The expansion marks a significant jump from the £618mn McDonald’s spent on new restaurants and refurbishments in the six years to the end of 2023.
McDonald’s said the plan demonstrated its commitment to “supporting successful high streets across the country as town and city centres continue to evolve and respond to a variety of challenges”. The details were set out in a report marking the group’s 50th year in Britain, having opened on Woolwich High Street in London in 1974.
The company said it would test new restaurant types, such as smaller formats, as part of the investment, as well as upgrading existing outlets. It opened 41 new restaurants in 2023, the highest number in two decades.
“We have become an important part of communities across the UK, and I’m delighted that in this milestone year we are able to demonstrate our ongoing commitment to growth,” said Alistair Macrow, chief executive of McDonald’s UK & Ireland in a statement.
“We’re proud of what we have delivered in the last 50 years and are committed to investing in new opportunities and supporting growth across the UK,” he added.
The announcement comes after the fast-food chain reported in July it had suffered its first global drop in sales since 2020, with consumers baulking at higher costs in international locations and its US base.
Comparable sales for the group fell 1 per cent year on year in the three months to the end of June. UK financials are not included in the group’s corporate earnings report.
Chris Kempczinski, chief executive, told investors on an earnings call that while consumers still saw the company as “the value leader” versus its main competitors, “it’s clear that our value leadership gap has recently shrunk” following price increases.
He added that in the UK, McDonald’s had started offering “smaller, more affordable bundles”, including a 3 for £3 Mix ’N’ Match menu that “resonated with customers looking for more affordable options”.
Earlier this year, it also introduced in the UK a breakfast deal that includes a sausage and egg or bacon and egg McMuffin with a drink for £2.79, 6p cheaper than a similar offering at rival Greggs. The bakery chain had taken over the top spot from McDonald’s in the UK’s breakfast-to-go market.
