McDonald’s is promising an extra 60 restaurants in the UK during 2020 as it embarks on a three-year investment plan worth £1 billion.
The fast food chain launched 40 sites in 2019 but is confident of exceeding that figure by at least 50% this year.
Paul Pomroy, CEO of McDonald’s UK & Ireland, said the business had emerged from a “tough” retail environment in good shape.
“In 2020 we remain committed to continuing investment in the areas driving our growth – our supply chain, our people and our restaurant experience, so over the next three years £1 billion will be invested to ensure we can continue to focus on what matters most – customers, food, value, service and convenience.
“Investment will be in the customer experience, as, together with our franchisees, we embark on a new cycle of updating the look and feel of our restaurants, as well as in the digital experience. Having opened 40 restaurants in 2019, we plan to open a further 60 in 2020. However, this is not against an easy backdrop – rising food prices, labour costs and inflation, coupled with wavering consumer confidence have resulted in a tough trading period across the board, and we are mindful of that.”
McDelivery was an important part of McDonald’s growth last year, and Mr Pomroy confirmed that Just Eat will come on board as a second delivery partner alongside Uber Eats to expand its offer and give customers more choice and convenience.
Delivery now makes up more than 10% of its UK sales.
“Listening to our customers and understanding what they want remains a priority as we grow. In 2019 we served more than 1.1 billion customers. They came to us for their McDonald’s favourites, but also our improved salads and wraps, as well as our coffee, with 14 million more cups sold last year.”
Mr Pomroy also highlighted McDonald’s efforts to improve its sustainability credentials.
“2019 was also a year of continual improvement; following the introduction of paper straws across our restaurants this year we made changes to our McFlurry and salads to reduce plastic waste by 485 metric tonnes annually.”