The fast food giant announced De Yu Co Ltd (De Yu), a consortium of investors led by Hubert Lee, who holds a 70% controlling stake, as the Developmental Licensee (DL) for its Taiwan market. Lee will be actively involved in McDonald’s business in Taiwan.
“By identifying strategic partners who share our values and vision to accelerate our growth and scale across diverse markets, we will drive innovation, becoming more relevant to our customers and the communities we serve,” said McDonald’s President and Chief Executive Officer, Steve Easterbrook.
“With today’s announcement about Taiwan, we continue to make progress on our commitment to get closer to our customers’ as we work to refranchise 4,000 restaurants around the world by the end of 2017.”
De Yu assumed ownership of the McDonald’s business in Taiwan on June 1, 2017, including a total of nearly 400 restaurants, more than 90% of which were Company-owned. Financial terms of the transaction were not disclosed. Under the DL structure, McDonald’s transferred its ownership interest in McDonald’s business in Taiwan and granted a license to Lee to develop and operate the McDonald’s restaurants in this market. De Yu will provide the capital necessary to support and grow the business.
“We look forward to partnering with Mr. Lee and his team to take our brand to the next phase in Taiwan,” said Simone Hoyle, Head of McDonald’s Asia Foundational Markets.
“Building on our existing brand strengths and high standards, I am confident that together, we will create exciting experiences for our customers by modernizing our restaurants, enhancing digital consumer engagement, and offering even more personalized service and a menu tailored to the local culture.”
“I am excited about joining a leading and world-class organization such as McDonald’s and working together with the team across Taiwan to make the customer experience even more unique and innovative,” said Hubert Lee.
“I share the McDonald’s vision to delight customers with the taste and quality of our food and offer the highest level of service and convenience.”
Joanna Liu will continue as Managing Director and will lead the day-to-day management of the Taiwan market. Liu started as a restaurant supervisor in Taiwan in 1984 and was Chief Operating Officer before she became Managing Director in December 2016.
The announcement builds on McDonald’s refranchising commitments and will accelerate local ownership, enabling faster decision-making, quicker learning and stronger restaurant growth. With this transaction, McDonald’s is on track to refranchise 4,000 restaurants by the end of 2017. Once completed, the company’s global franchised percentage is expected to reach approximately 93%.
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