800 stores in 2025 and counting: McDonald’s signs on for 20 more years in PH with George and Kenneth Yang

McDonald’s Philippines has secured its presence in the country for another two decades following the approval of a new 20-year franchise agreement with McDonald’s Corporation. This agreement ensures the continued operation and development of McDonald's restaurants through Dr. George T. Yang and Kenneth S. Yang under the Golden Arches Development Corporation (GADC) until 2045.

The Philippines is one of the largest and rapidly developing McDonald’s markets in the world based on the number of stores. Since opening its first branch on Morayta Street in Manila in 1981, McDonald’s network has grown to 792 stores nationwide by the end of 2024.

“When I was applying as a franchisee in the late '70s, McDonald’s (Corporation) asked me how many stores I planned to open. I confidently said 10 stores. This 2025, we’ll be opening our 800th store,” said McDonald’s Philippines Chairman and Founder Dr. George T. Yang.

Under the leadership and stewardship of George and his son, President and CEO Kenneth S. Yang, the McDonald’s brand has reached communities across all regions in the country. The company has opened 65 new stories in 2024 alone. “We’re excited to open more stores and bring McDonald’s closer to more Filipinos,” said Kenneth, adding, “This 2025, we aim to break our record new store openings.”

Focus on customer experience and innovation

Central to GADC’s strategy is its commitment to providing excellent customer experience. “If you focus on the customer, you will not go wrong,” George said.

This philosophy led to the introduction of menu items tailored to the Filipino palate, such as Chicken McDo and McSpaghetti in 1986, followed by Burger McDo. These remain popular choices today.

McDonald’s Philippines continues to refine its menu with recent offerings like “McDonald’s Best Burger Ever”, “Much Malaki, Much Juicier, Much Crispier Chicken McDo”, and “Bolder Brew and Creamier Blend McCafe Iced Coffee.”

In 2005, GADC became a 100% Filipino owned company with George and Kenneth as its majority owners, and Alliance Global Group, Inc. as its investment partner. This paved the way for the company to look towards a digital-led future underpinned by the growing demand for a seamless omni-channel customer experience.

McDonald’s pioneered many firsts, from being the first QSR to have an online delivery channel in 2009 to being the first to launch a McDelivery App in 2014. Its McDonald’s App, introduced in 2020, provides personalized and exclusive deals to over 12 million users as of December 2024. They were also early adopters of third-party delivery services Grab and Food Panda in 2018.

“Investing in digital, and in customer experience has yielded growth, and even protected the company during the most challenging times, like the pandemic in 2020,” Kenneth shared.

First rolled out in 2018 at McDonald’s McKinley West, McDonald’s NEXTGEN store format will be adopted in all of its stores across the country this year.

“Our digital transformation journey has enabled us not just to scale the business and serve more customers, but it has improved how we do it. We are not stopping with these platforms and solutions; we are continuously working on opportunities coming from evolving customer preferences and behaviors,” said Kenneth, who assured that their digitalization has not affected the number of store hires, but instead, allows them to focus on offering better service.

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In the last 44 years, McDonald’s Philippines has partnered with around 100 independent business leaders who operate McDonald’s stores as sub-franchisees. This enables the company to be present in more local communities and become one of the country’s biggest youth employers. The stores are humming with activity from a workforce of over 65,000, all striving to serve quality food in a clean, sanitary, and welcoming environment. 

These employees receive all government-mandated wages and benefit, plus other perks like free meals, uniforms, and discounts on products and services. What’s more, 70% of its employees are working students whose shift schedules are tailored to their class schedules, giving them the flexibility to work and continue their studies at the same time. Since the first store in the country, McDonald's has directly hired all its employees and has never practiced contractualization.

McDonald’s also offers world-class training and development opportunities, equipping employees with skills that help them grow within the organization and beyond.

“My father has always stressed, from the beginning, we would directly hire our employees and really give them the world-class training and development that McDonald’s is famous for,” Kenneth said.

Making a difference

In 1995, Ronald McDonald House Charities (RMHC) opened its Philippines chapter with George as chairman and Kenneth as president. With a mandate to uplift the lives of Filipino children and families, RMHC continues to expand its programs to reach more communities in need.

RMHC operates four flagship programs: Ronald McDonald Read to Learn, a beginning reading program in partnership with the Department of Education; Ronald McDonald Bahay Bulilit, a program in partnership with the Department of Social Welfare and Development that provides safe and accessible learning spaces for preschool children; Ronald McDonald Family Room, a space for families in hospitals where they can rest as they care for their sick children; and McDonald’s Kindness Kitchen, a program that serves McDonald’s meals to communities affected by natural calamities.

“We’re not just here to profit,” Kenneth said. “We are here to participate in nation-building and to help our employees grow and upskilll. That is our purpose, illuminating the arches for brighter possibilities.” 

“As we go into a community, we also want to make an impact when we are there,” Kenneth continued. “As we build one store at a time, as we go all over the country, it now becomes a confidence builder and a positive force for the community, adding it all up to help the whole country.”

The next 20 years 

The Yangs envision the next 20 years to be a period of accelerated, sustainable growth with a commitment to generate more economic and employment opportunities, support communities by championing education, and continuously enhance the McDonald’s customer and employee experience.

“We take pride in the positive impact we make every time we open a McDonald’s store. With every store that we open, we are able to signal market readiness and growth in an area, provide direct employment, and contribute to nation building,” said George. ”The new term license granted to us by McDonald’s Corporation is a bold statement of our collective ambition, as we remain committed to serve as a beacon of growth, opportunity, and shared moments with every Filipino family.”

“At McDonald’s Philippines, more than a sign and a symbol, the glowing ‘M’ symbolizes that the best is yet to come.”

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