McDonald's Corp is opening four do-it-yourself burger concept stores this year in China as the fast-food giant works to lure Chinese consumers back to its restaurants after last year's supply chain scandal.
McDonald's China Chief Executive Officer Phyllis Cheung told China Daily on Tuesday that the company is opening three "Create Your Taste" concept stores in downtown Shanghai and one in Guangzhou. The model will be expanded to Beijing and Shenzhen next year. Two have already opened in Shanghai.
Consumers can choose from 24 ingredients to make their own burgers at the restaurants. The concept store, which originated in the United States, has also been developed in Australia, New Zealand, Singapore and Kuwait.
The new restaurants in Shanghai involve the McCafe section, which itself has more than 800 outlets in China. Cheung said McCafe offers alternative options for adult members of a family when their children are eating burgers. McCafe also "elevates the in-store experience as a community store rather than a fast-food chain", she said.
KFC, a unit of the US-based Yum Brands Inc, also announced on Tuesday that it had formed a collaboration with Alipay, the financial arm of Alibaba Group Holding Ltd. The Alipay mobile payment system will be offered at more than 700 restaurants in Shanghai and Zhejiang province, and it will gradually expand nationwide.
Jason Yu, general manager of Kantar Worldpanel China, said the DIY concept will attract young customers, but is unlikely to have a big impact on the overall performance.
Last July, Shanghai Husi Food Co Ltd, a supplier to McDonald's, KFC and Pizza Hut, was found to be using expired meat in its products.
