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McDonald’s will open over 200 new restaurants in the UK and Ireland over the next four years as part of a £1 billion expansion plan by the fast-food chain to increase its presence on the high street.
The group said the investment by the company and its franchisees would create more than 24,000 new jobs, in addition to the 1,435 McDonald’s stores in the UK, which employ a total of 171,415 people.
The expansion represents a significant jump from the £618 million McDonald’s spent on new restaurants and renovations in the six years to the end of 2023.
McDonald’s said the plan showed its commitment to “supporting successful high streets across the country as town centres evolve and respond to a variety of challenges”. The details were set out in a report to mark the group’s 50th anniversary in the UK, which opened on Woolwich High Street in London in 1974.
The company announced that the investment would see it test new types of restaurants, such as smaller formats, and upgrade existing branches. In 2023, 41 new restaurants will open, the highest number in two decades.
“We have become an important part of communities across the UK and I am delighted that we can demonstrate our continued commitment to growth in this milestone year,” said Alistair Macrow, managing director of McDonald’s UK & Ireland, in a statement.
“We are proud of what we have achieved over the last 50 years and are committed to investing in new opportunities and supporting growth across the UK,” he added.
The announcement comes after the fast-food chain reported in July that it suffered its first global sales decline since 2020 as consumers balked at higher prices at international locations and the U.S. location.
The group’s comparable sales fell 1 percent year-on-year in the three months to the end of June. The UK financials are not included in the group’s earnings report.
CEO Chris Kempczinski told investors in a quarterly earnings call that while the company is still viewed by consumers as a “value leader” over its major competitors, “it is clear that our lead as a value leader has shrunk recently” as a result of the price increases.
He added that McDonald’s in the UK had started offering “smaller, cheaper packages”, including a 3-for-3 pound mix-and-match menu, which “resonated with customers looking for cheaper options”.
Earlier this year, the chain also launched a breakfast deal in the UK that included a sausage and egg or bacon and egg and a drink for £2.79, 6p cheaper than a similar deal at rival Greggs. The bakery chain thus took over the top spot in the UK breakfast takeaway market from McDonald’s.
