US Fast-Food Giant to Open Over 200 Restaurants as Part of £1 Billion Investment Focused on High Streets.
McDonald’s is set to open more than 200 new restaurants across the UK and Ireland over the next four years, creating approximately 24,000 jobs. This expansion comes in response to growing demand for takeaway food.
This move marks McDonald’s largest expansion in the UK in over two decades, supported by a £1 billion investment from the fast-food chain and its franchisees, with a particular focus on high street locations.
Currently, McDonald’s operates 1,435 restaurants across the UK, with about 80% of them owned and run by franchisees.
These franchisees employ over 170,000 people. The company, which is celebrating 50 years since opening its first UK store in Woolwich, south London, will also explore new formats, including smaller outlets and “drive-to” restaurants, as part of its expansion strategy.
The UK’s food-to-go market is projected to grow by 40% in value by 2028, according to the grocery industry body IGD. While recent growth has been driven by inflation, the volume of orders began increasing again in 2024, a trend that is expected to continue and become the primary driver of growth next year.
McDonald’s expansion plans in the UK and Ireland come on the heels of the company’s global goal to open 10,000 more restaurants worldwide by 2027. However, the global company faced a setback earlier this year when it reported its first quarterly sales decline in nearly four years, due to weak growth in key markets including the Middle East, China, and India.
Alistair Macrow, CEO of McDonald’s UK and Ireland, expressed enthusiasm about the expansion: “We have come a long way since we first opened our doors in Woolwich 50 years ago. I’m delighted that in this milestone year we can demonstrate our ongoing commitment to growth, and announce the creation of new jobs across the country as we plan to open over 200 new restaurants over the next four years.”
The demand for takeaway food remains strong, driven by both the return to office work and the habit of those working from home treating themselves. However, competition in the UK market is fierce. McDonald’s recently lost its top spot for takeaway breakfasts to Greggs, a Newcastle-based bakery chain that is rapidly expanding.
Chris Kempczinski, CEO of McDonald’s Corporation, acknowledged the challenges, stating that the company’s “value leadership” has diminished recently but assured that efforts are underway to address the issue with urgency.