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McDonald's, the number-two fast food chain in China behind Yum! Brands' super-successful KFC brand, says that it doesn't want to completely saturate the country with golden arches.
Kenneth Chan, CEO of McDonald's China, told Laurie Burkitt at the Wall Street Journal, "we're not out to have the most stores in China, but we want to have the highest quality."
It's hard to believe that McDonald's really doesn't want the top spot in China, but Chan's statement does serve to show that McDonald's priority is quality over store count.
McDonald's is trying to reposition its brand in an effort to change the status quo. It has been in China for 20 years, and yet, it has proved no match for Yum! Brands, which dominates with 5.2 percent market share compared to 2 percent for McDonald's.
So now, McDonald's wants to be seen as a safe haven for consumers that are weary of all the recent quality-related issues that have hit the food industry there.
And it has a new marketing campaign to try to convince consumers of that, so it's putting its money down in a bet that this will work. From Burkitt's report:
The fast-food giant is planning to air a series of television commercials this summer to portray itself as the fast-food brand in China with the best quality. The ads will feature "100% fresh beef" on the chopping block, farmers picking tomatoes from the vine and chickens eating high-quality feed, according to a company spokeswoman.
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