McDonalds, the world famous fast food franchisor, entered mainland china in 1990, when Chinese franchise law

did not even exist. In this once-closed country whose market only opened up to foreign investors in 1978, McDonalds had to adapt an unfamiliar and rapidly changing environment. They envisaged a very good business in the worlds most populated and highest growing country. They had the idea about the surging economic growth and massive urbanization. In October, 1990 the first McDonald opened in China and by the year 2003 it had nearly 550 restaurant in Chinas four municipal and 70 provincial cities and by the year 2011 it has increased to 1400+ and the company plans to make it 2000 by the year 2013. Location strategy mainly gives importance to the following: Facilities, Feasibility, Logistics, Labour, Community and Site, Trade zones, Political risk, Governmental regulation and Environmental regulation. McDonalds mainly gave importance to the logistics part. In the whole world McDonald is providing the same quality of food and for this to happen they have a very efficient Logistics department. Facilities are more or less same through out the world, it may differ by some amount in some of the outlets, but quality is almost same. With this location strategy and the passion to capture a decent market share in china, they expanded heavily. But in the meantime they had to face immense competition from other two fast food MNCs KFC, better known as Yum! Brand and Burger King. Rival like Yum, on comparison, has around 4500+ restaurants in the country by the end of 2011-2012 financial year. Here I will put forward the company Burger King in comparison with McDonalds. Burger King on the other hand was lagging a bit from its rivals. Although this fast food MNC has 12,500 restaurants globally, it has merely 63 outlets in China. Their Location strategy as well as expansion strategy took a backseat in China. After 3G capital became the new promoter of Burger King, they announced to open another 1000 outlets in china within next 2 years. On the strategic note, they have evolved many ideas. Keeping the restaurant open even after midnight is one of them and particularly for Chinese location strategy. Some years back they changed their tagline to Have it your way to boost up sales. But still they lag their peers because of the reason that they have multiple management providing multiple ideas for the same location or business.