The South Korean unit of McDonald’s Corp. openly expressed that it is looking for a strategic partner in Korea to promote its further growth in the local market, signaling that the world’s biggest restaurant chain will seek to shift its Korean business management for the first time in nearly 30 years since it entered the Korean market.

On Thursday, Steve Easterbrook, chief executive and president of McDonald’s, said that the company is implementing “a global turnaround strategy” and as part of that plan, it wishes to blend its “global quality standards with local insights and expertise from partners” in Korea. The company did not elaborated further what it means by strategic partner.

But McDonald’s said that it is open to all possibilities including allowing a master franchise that gives away franchise operation rights and receive loyalty in return to oversee stores or going into a joint business partnership with a local enterprise. In fact, of the 119 countries McDonald’s operates, 60 percent are being managed strategically based on various business forms including franchises and joint partnership.

It is the first time in almost 30 years that the Korean unit is seeking change in its business management since the world’s biggest chain restaurant entered the market in 1988. Until now, all McDonald’s stores in Korea have been directly managed and controlled by the local unit without any franchise stores or joint partnership.

McDonald’s Korea is a limited company with 100 percent shares owned by McDonald’s Corp. The Korean unit manages 430 stores across the country. Although it is uncertain of how much sales and profit McDonald’s Korea raises every year since it is a limited company, industry analysts estimate that its sales have been rising but profitability needs to improve.

McDonald’s Korea has been continuously putting out new marketing efforts. Recently, it announced that it will be the first in Asia to sell beer with burgers at one of its locations in Korea, and also, it has been increasing the number of stores that offer Signature Burger in which consumers can choose their own ingredients to build a burger. Industry observers note that McDonald’s is hoping to seek partnership with a local enterprise that is familiar with the Korean market to accelerate more stable growth in the country.

By Seo Jin-woo

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]