Retailing, Franchising, and Consumerism Business Intelligence in China

McDonald's Signs Exclusive Agreement With Shenzhen Metro

The international fast food giant McDonald's has set up a strategic partnership with Shenzhen Metro Company for its expansion in business areas along subway lines.

This is reportedly the first time for McDonald's to form an alliance with a local metro transit company in China.

According to the agreement signed by the two parties, during the next five years, the American fast food company has the priority to open restaurants in all underground and above-ground real estate projects operated by Shenzhen Metro. Apart from the rent gained from the agreement, Shenzhen Metro can also take the opportunity to develop the fast food business in its subway stations since there is no fast food restaurant in these stations.

Prior to this, McDonald's announced that it plans to increase its investment in China by 25% and its operating revenue is expected to be triple by 2015, comparing with that in 2009.

At present, Shenzhen has 22 subway stations and the city will have 16 subway lines by 2030.

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