McDonald’s has revealed a major £1 billion expansion plan aimed at increasing its presence in the UK over the next four years. The fast-food chain will open 200 new restaurants and create more than 24,000 new jobs nationwide. As part of this expansion, McDonald’s will trial smaller-format stores and ‘Drive to’ outlets this year, which will feature a car park, a small seating area, and no drive-through facilities.
A significant aspect of the strategy is the focus on high street establishments in town and city centres throughout the UK. McDonald’s will also continue refurbishing its existing 1,500 locations across the UK and Ireland while introducing new sites.
In the US, McDonald’s is experimenting with new restaurant formats as well. The company recently launched CosMc’s in Illinois, a small-format, beverage-focused concept that offers a range of specialty teas, lemonades, slush drinks, and cold brews. The store features retro styling and allows customers to customise their drinks with options like vitamin C shots and flavour syrups, in addition to a variety of food items.
Alistair Macrow, CEO of McDonald’s UK & Ireland, commented, “I’m delighted that in this milestone year we are able to demonstrate our ongoing commitment to growth.”
The global fast food chain plans to open ten CosMc’s locations in the US by the end of the year, with a combination of drive-thru and walk-up formats. This announcement coincides with the release of the McDonald’s at 50 report, which explores the impact of the brand on UK communities since the opening of its first branch in Woolwich in 1974.
From 2018 to 2023, McDonald’s invested £618 million in new restaurants and upgrades, with 41 new restaurants opened last year—the highest in two decades. The expansion comes shortly after McDonald’s reported its first decline in like-for-like sales since 2020, leading CEO Chris Kempczinski to acknowledge a need for a “comprehensive rethink” in some markets.
In the UK, McDonald’s is refining its pricing strategy in response to the growth of its loyalty programme. Kempczinski stressed the importance of balancing price growth with increased foot traffic. “We can get even smarter with our pricing methodology and tailor our digital offers to our fans, making them even more personalised,” he said.
Macrow emphasised that the company’s focus is on delivering value, investing in its restaurants, and supporting UK suppliers. In 2023, McDonald’s spent £2 billion with UK farmers and suppliers, supporting 209,475 jobs. Since its UK debut in 1974, McDonald’s has spent £51.56 billion with UK suppliers and contributed £94.45 billion to the UK economy.
McDonald’s creative store designs, such as their ‘Drive to’ locations and smaller stores, may cause Kiwi companies to reconsider their approaches. This development may set a standard for growth for entrepreneurs across New Zealand. The creation of jobs in the UK may attract some talent from New Zealand, and local suppliers to McDonald’s may find new business prospects.