McDonald's Malaysia eyes RM3 billion in sales in 2019

McDonald’s Malaysia is targeting RM3 billion sales in 2019 and plans to invest RM1.4 billion by 2025. It also aims to increase its footprint to 450 restaurants nationwide and create 10,000 additional jobs by 2025. The company currently has 278 restaurants and more than 14,000 employees nationwide.

Last year, it recorded a 19% year-on-year growth, having focused its investments in areas including digital segments, community ventures and local menu offerings. According to managing director and local operating partner Azmir Jaafar, 2018 was a "winning year" for the company as its sales performance was backed by investments of more than RM200 million over the past two years.

A main factor that contributed to the improved performance at existing outlets is the modernisation of its customer restaurant experience or Experience of the Future (EOTF). The new dining model comprises features and innovative customer service concepts such as self-ordering kiosks, cashless transaction convenience, table service, digital menu boards, high-speed wifi connectivity and dual point service. Since 2016, McDonald's has opened 23 new stores and remodelled 64 of its existing ones to be EOTF ready.

Meanwhile, McDonald's Delivery and digital platforms are projected to be new growth drivers for the next three years. During the first quarter of 2019, the McDonald's app saw more than 3.7 million downloads, out of which 2.9 million are registered users and 1.5 million are active users. The company is also targeting 20 more Drive-Thru restaurants this year. As McDonald’s continues to expand its footprint nationwide, the Drive-Thru business has become a critical component of its business strategy to boosting McDonald’s market leadership. Currently, Drive-Thru window sales contribute close to 50% of total sales for its Drive-Thru restaurants.

Besides growing its footprint and the Drive-Thru segment, the company is also intent on building human connections. Last year, it held 10,000 community engagements including "Back-to-School" programme and carrying out multiple programmes through the Ronald McDonald House Charities. In terms of sustainability initiatives, McDonald’s is committed to have more restaurants equipped with green features in order to achieve its target of reducing carbon emission in each restaurant by up to 30%.

“We look forward to enhance the current talent pipeline that we have now. By doing so, we are ensuring that we provide the opportunity to young people to kickstart their careers and grow in various areas within the McDonald’s Malaysia organisation,” said Azmir.

Recently, McDonald's launched an OOH campaign celebrating famous Malaysian sights and sounds with visuals unique to each location, constructed using McDonald’s food such as fries, burgers, nuggets and ice cream. The different places include PETRONAS Towers, Sunway Pyramid, the Penang Bridge, the turtle nestings in Terengganu and Batu Caves.

Marketing director Eugene Lee told A+M that the campaign will gradually roll out on more than 50 billboards across Malaysia. The company invested approximately RM300,000 for visual changes on billboards.