McDonald’s Korea was confident about achieving its plans to reach 500 nationwide outlets and create 10,000 new jobs by 2015, despite a tougher regulatory environment for large franchises.
“We are focused on the strategy of going from we are today to 500 (restaurants). Consumers are responding very well so we are confident in achieving the mission to get 500 restaurants,” Joe Erlinger, managing director of McDonald’s Korea, told The Korea Herald on Wednesday following a press conference.
Joe Erlinger, managing director of McDonald’s Korea
He added that it was natural for local markets to have local regulations, and that McDonald’s would “abide by any local law that comes up.”
The Korean branch of the world’s biggest hamburger chain earlier pledged to make a new investment worth 500 billion won ($440 million) between 2011 and 2015 to hit a total of 500 outlets. This would create some 10,000 new jobs, the firm said.
The government has been introducing tougher regulations on the business expansion of local conglomerates that could affect smaller mom-and-pop shops. Foreign brands are no exception, although currently none have fallen prey to the new laws.
“Back in 2011, we were beginning to understand what would be successful in the Korean market. That gave us confidence to set a long-term plan for the growth,” he said, hinting at no immediate change to its original plan.
Communications director Karen Kim also saw a limited impact from stricter rules, saying: “There is a small number of independent vendors in the hamburger industry and it would not be easy for them to secure quality ingredients at cheaper prices like us.”
The new Korean chief, who took office on May 1, said he has already traveled to some 50 McDonald’s locations nationwide for market research. On Wednesday, he announced a new campaign called “Surprise Mom” that aims to offer more detailed information online and on-site about McDonald’s products to ease food safety concerns among Korean mothers. This service will be unique to Korea.
Erlinger said the Korean unit was more than willing to continue efforts to introduce localized services and tastes to the market -- for instance, the first delivery service introduced in the nation’s hamburger industry.
“I found you can get almost everything delivered in Korea. If we didn’t deliver, that could be a competitive disadvantage for us,” he said.
He also pledged to recommend some successful Korean menu items such as the Shanghai Spice Chicken Burger and Bulgogi Burger to be introduced to other markets, saying: “Good idea has no borders at McDonald’s.”
McDonald’s Korea currently operates some 300 chain stores across the nation and employs about 15,000 part- and full-time workers here.
By Lee Ji-yoon (
jylee@heraldcorp.com)