McDonald’s to open another 100 more Australian stores – and the fast food giant is about to change the look of its restaurants for good
- McDonald’s set to open another 100 stores in Australia in the next three years
- Company made $1.7billion revenue in 2020 with drive-throughs key performers
- The company said lockdowns had, however, affected their workforce numbers
Fast food giant McDonald’s will open up another 100 stores across Australia over the next three years in a $600million expansion push.
The company said lessons learned during lockdown have highlighted the importance of drive-through, digital sales, and delivery which will be a focus of the new layouts.
Their free-standing restaurants not attached to food courts helped the company pull through the Covid crises with out too much of a hit – with development sites of between 3,000 and 4,000sq m being sought for the new stores.
McDonald’s said their stand-alone stores were the key to their strong results in 2020 (stock image)
CEO Andrew Gregory did say that lockdown and schemes such as JobKeeper and JobSeeker had affected the pool of workers (stock image)
Their revenue actually rose in 2020 to $1.7billion, though net profit reduced slightly by $36million to $206.4million – with rent in locations such as shopping centres and airports draining profits.
McDonald’s Australia CEO Andrew Gregory said drive-throughs in suburban locations were the strongest performing aspect of the business in the past 12 months.
‘Not only was it convenient and fast, but also incredibly safe. Our new restaurant strategy is about doubling down on the strategy prior to 2020,’ Mr Gregory told the AFR.
‘We are looking for suburban locations to leverage the different platforms – the drive-thru, the McCafe – and I think there’s a lot of opportunity for more growth in Australia.’
Mr Gregory also explained the company’s strategy of sourcing ingredients from Australian producers helped minimise supply disruptions in 2020.
Interestingly, he did note, however, the pandemic had disrupted the labour market with the fast-food industry, supermarkets, and big-box retailers competing for the same staff.
The federal government introduced JobSeeker and JobKeeper programs in 2020 which increased welfare payments for those not currently working.
Drive-throughs are to be a focus of the new stores with McDonald’s Australia’s CEO saying they allowed speed and safety (stock image)
The restaurant chain, founded in Chicago in the 1950’s, will open 27 stores in Australia in 2021 followed by a target of another 40 to open in both 2022 and 2023.
Their first store in Australia opened in 1971 in the Sydney suburb of Yangoona – marking 50 years in the country this year.
Mr Gregory said the golden arches have become ingrained in Australian culture with many innovations pioneered by the company.
He explained the breakfast menu, introduced in the late 1980s, helped to create Australia’s cafe culture.
‘People didn’t eat breakfast outside the home before that,’ Mr Gregory said.
This was further expanded by the McCafe concept which launched in Australia in 1993 and has been replicated across the globe.