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McDonald's expanding drive-thru network in China
2007-01-19 01:08:54 THE ASSOCIATED PRESS

BEIJING, Jan. 19 (AP) -- McDonald's Corp. and a Chinese oil company opened the first of a planned series of two dozen drive-through restaurants, launching an effort to tap China's growing taste for cars and Western fast food.

The drive-through on Beijing's northwestern outskirts is McDonald's 16th in China, but its first in the new venture with China Petroleum and Chemical Corp.

Jeffrey Schwartz, McDonald's chief executive officer for China, said the two companies plan to open 25 to 30 drive-throughs in the next 12 to 18 months.

China's booming market is a key growth area for McDonald's, Schwartz said.

"It's huge. It's a real priority for the global company because of the potential growth in China," he said. "We think drive-throughs are a big part of this."

McDonald's, based in the U.S. city of Oak Brook, Illinois, opened its first outlet in China in 1990 and has expanded in the country to 780 restaurants with 50,000 employees.

But among Western fast food chains, it trails Yum Brands Inc., which has more than 2,000 KFC restaurants in China and more than 300 Pizza Huts.

China's double-digit economic growth in recent years has created a burgeoning market for cars, fast food and other consumer goods.

McDonald's Chinese partner, also known as Sinopec, has more than 30,000 filling stations throughout China, giving the hamburger chain a wide selection of potential locations and a ready stream of drivers.

China last year passed Japan to become the world's No. 2 vehicle market after the United States, as car purchases by newly affluent drivers jumped 37 percent to 3.8 million.

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