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Gloucestershire Business News

REVEALED: McDonald's vision for 200 new restaurants in £1bn spend

In the wake of its July announcement of a 1% quarterly global sales fall – the first since 2020 – McDonald's UK and Ireland has set out plans for a £1bn investment which promises 200 new restaurants in a new drive for growth for the next four years.

The plans are revealed in a new report called McDonalds at 50, which has been issued to mark the half-century anniversary of the US food giant's first UK restaurant opening in Woolwich.

Across Gloucestershire, McDonald's restaurants tally eight across the county - five in Gloucester, two in Cheltenham and one in Stroud. They are operated by franchise Incito Group Holdings.

Key aspects of the report include:

● 209,475 jobs were supported across the UK in 2023, including 171,415 people employed by McDonald's and its franchisees directly.

● £618m invested by in delivering new restaurants and upgrades between 2018-2023.

● 41 new restaurants opened in 2023, the highest number in 20 years.

● £51.56bn spent by McDonald's with UK-based suppliers and farmers since 1974 and more than £2bn spent with them in 2023.

● £94.45bn tax contributed to the UK economy since 1974.

● During 2023, UK-based suppliers invested more than £100m, improving their production and distribution, this figure rising to almost £1.37bn over the past five years as a significant level of capital investment.

Alistair Macrow, CEO of McDonald's UK&I, said: "We have come a long way since we first opened our doors in Woolwich 50 years ago. 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, and announce the creation of new jobs across the country as we plan to open over 200 new restaurants over the next four years.

"It's a moment to celebrate, and also to look ahead to what's next. Whether that's continuing to provide the best value for our customers, investing in our restaurants, supporting our suppliers across the UK or launching new initiatives for young people where our communities need them most."

He added: "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."

Now eyeing an expansion program that will target the creation of 24,000 new jobs in the UK and Ireland, this will be the company's biggest move for 20 years over here, with the outlay costs shared by both HQ and franchisees. In terms of who owns what, some 80% of McDonald's stores in the UK are owned by third party business, with staffing across the country currently standing at 170,000.

But if you thought that meant more drive-thru queues coming soon to a Gloucestershire street near you, the details suggest a steer away from some of the world's biggest fast food brand's recent thinking.

In fact, McDonald's has indicated that the focus for the new plan will be on the high street, with drive-to supplanting the recent trend for creating more drive-thru facilities. That's obviously a pragmatic step, given that creating the latter demands a considerably larger retail space and premises footprint.

The company said: "The new restaurants are part of ongoing investment that McDonald's will make to ensure the business continues to meet evolving customer expectations. The roll out will include testing new restaurant formats, with 'Drive to' restaurants recently launched, and additional smaller formats being trialed this year - ensuring every new restaurant meets the needs of the community in which it operates.

"The plans will also see a renewed focus on opening high street restaurants, demonstrating an ongoing commitment to supporting successful high streets across the country as town and city centers continue to evolve and respond to a variety of challenges."

Alongside new restaurants, the business has said it will continue to upgrade and "reimage" more than 1,500 existing restaurants across the UK and Ireland.

● In July, McDonald's acknowledged that a quarterly 1% decline in sales was attributable to an organised boycott of its stores by Muslim customers and supporters in the wake of Israel's war in Gaza. McDonald's Israeli franchisee owner Omri Padan sparked the boycott after offering free meals to soldiers in Israel's army in the days following Hamas's attack on October 7.

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