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      Economy

      McDonald's upgrades O2O strategy in mainland

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      2016-12-12 09:12Global Times Editor: Li Yan ECNS App Download

      McDonald's unveiled an upgraded online-to-offline (O2O) strategy in the Chinese mainland over the weekend, aiming to link more stores to digital hardware and personalized products across the nation.

      According to the plan, the strategy is customer-focused and digital-driven, and customers can experience digital ordering, touch-screen services and mobile payments.

      Further, customers can enjoy personalized products, such as burgers and desserts. The app is expected to be available nationally next year.

      According to a statement sent to the Global Times, the company said the move is due to rising digitalization and O2O development in the mainland.

      The company said it expected to see 1,000 restaurants in more than 13 cities complete their hardware upgrades, accounting for 40 percent of the entire restaurant portfolio.

      The US fast-food chain operator said in March that it was looking for strategic partners in the Chinese mainland, Hong Kong and South Korea in a bid to change into a less capital-intensive franchise model.

      The Wall Street Journal reported last week that a consortium including private-equity giant Carlyle Group LP is close to a deal valued at as much as $2 billion to buy the group's mainland and Hong Kong stores.

      However, a mainland-based McDonald's spokeswoman declined to comment when reached by the Global Times. The group has more than 2,200 restaurants in the mainland.

      In September, rival Yum Brands, parent company of KFC and Pizza Hut, said it agreed to sell a $460 million stake in its mainland unit to a private equity firm Primavera Capital Group and an affiliate of Alibaba Group Holding, ahead of a planned spinoff of its China business.

        

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