McDonald's seeks franchise partners for Singapore, Malaysia stores
Posted 26 Jul 2016 16:16 Updated 26 Jul 2016 17:57
HONG KONG/SINGAPORE: McDonald's Corp said it is seeking franchise partners for its restaurants in Malaysia and Singapore as part of its move away from direct ownership and operation in Asia.
"McDonald's has taken the decision to adopt a development licensee model for the Malaysia and Singapore markets in order to enable focused investment in the brand and speed up growth in these key Asian markets," McDonald's said in a statement on Tuesday (Jul 26).
A Singapore-based MacDonald's spokesperson told Channel NewsAsia the company was negotiating with suitable candidates who have "a blend of strong business acumen, a strong understanding of the McDonald’s brand, who share our values and vision, and who are committed to helping accelerate growth and innovation in Singapore", without providing a timeline for the negotiations.
Sources told Reuters that some suitors looking at both countries had begun to tap banks for financing options to buy the 20-year franchise rights.
The sources declined to be identified as they were not authorised to speak to the media.
The move for the Southeast Asian markets follows an announcement by McDonald's in March that it was reorganising its Asian operations by bringing in partners who would own the restaurants within a franchise business. Competitor Yum Brands is also restructuring its China business by spinning it off ahead of a likely IPO next year.
Bloomberg News earlier reported that the sale of McDonald's franchise rights in Malaysia and Singapore could collectively fetch at least US$400 million.
(Reporting by Carol Zhong of LPC and Anshuman Daga in SINGAPORE; Additional reporting by Saeed Azhar)
- Reuters/CNA/mz
- wong chee tat :)
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