COMPANY BACKGROUND

McDonald’s Corporation, also known as McDonald’s fast-food chain, famous for its

tagline “love ko ‘to” is one of the largest fast-food chain in the Philippines. It is headquartered in

Makati. In 1981, Dr. George T. Yang owner of the famous Golden Arches Development

Company, opened the first-ever McDonald’s restaurant in the Philippines located ate Morayta,

Manila. The historic branch is still on its original location and continuing operations. In 1992, the

restaurant brought menu items like Big Mac and McDonald’s Fries in its first stores in Visayas

and Mindanao.

In 2005, McDonald’s Philippines becomes 100% Filipino-owned. As of 2020, the

number of currently operating McDonald’s outlet in the Philippines that continued to operate,

serve, and creates good moments for Filipino families with more than 670 restaurant outlets

nationwide. The McDonald’s Philippines has seen a tremendous growth in the franchising

business over the past decades. After learning from other international market leaders and

developing an ecosystem that allowed franchising to flourish in the country. With over 2,000

local and international franchise concepts in the country, the Philippines has become known as

the “Franchise Hub of Asia” and was also among the 2017 top 5 franchise markets in the world.

With President and Chief Executive Officer Kenneth S. Yang also, it is now a multibillion-Peso

company. They have over 40,000 employees serving Filipinos all over the Philippines.

All McDonald’s branches in the Philippines are operated either by GADC or by

independent entrepreneurs under a sub-franchise agreement or by affiliates under joint venture

agreements with GADC. The McDonald’s System abroad, specifically in the USA is adopted

and used in the restaurant operations in the Philippines, from the prescribed standards of quality
to its service and cleanliness. Compliance with these standards, said GADC, is intended to

maintain the value and goodwill of the McDonald’s brand worldwide.

In 2017, residents living in Samar, Virac Catanduanes, El Salvador in Misamis Oriental,

San Jose in Mindoro, Gerona in Tarlac, and among others were able to experience McDonald's

meals for the first time.

It rolled out more than 30 NCTGEN stores already in areas such as Quezon City,

Mandaluyong, Taguig, Makati, Manila, Pampanga, Cavite, Tagaytay, Davao, Antique, and other

more. With the vast changes in technology, the company introduced NXTGEN in 2018. It is a

new store format that is equipped with a multi-point service system which enables a fast,

convenient, and seamless experience for both customers and employees. The first flagship

opened in McKinley West, Taguig City in October 5, 2018. The new service platform features

innovations that have been previously rolled out internationally which are self-ordering kiosks

that allow cashless payments, and split counters for ordering and claiming. Mr. Yang said that

their brand service will never change despite expending technology and innovations.

Golden Arches Development Corporation

The Golden Arches Development Corporation is a domestic corporation that is engaged

in the operations and franchising of fast-food restaurant under the brand of McDonald's

Philippines. It is the master franchise holder for the McDonald's Philippines. In accordance with

the master franchise agreement with McDonald’s Corporation, the company incorporated in

Delaware and with principal offices in Illinois, USA. Being its master franchise holder, it has

successfully made McDonald’s an all-time favorite quick-service restaurant among the local

citizens in the Philippines despite being an international brand.

Products and Services

Its Way of Giving Back to the Community

Dr. George T. Yang believes that giving back to the communities and also launches

Ronald McDonald House Charities or also known as RMHC in the Philippines.

References:

Administrator, A. (n.d.). Our story. Retrieved March 29, 2021, from

https://mcdonalds.com.ph/our-story

Golden arches Development Corporation. (n.d.). Retrieved March 29, 2021, from

https://www.allianceglobalinc.com/subsidiaries/golden-arches-development-corporation

McDonald's Philippines Brings world-class customer experience With 'nxtgen' stores. (n.d.).

Retrieved March 29, 2021, from https://www.allianceglobalinc.com/news/mcdonalds-

philippines-brings-world-class-customer-experience-nxtgen-stores

Peña, Z. (n.d.). Alliance global acquires 49% stake in local Mcdonald’s franchisor. Retrieved

March 29, 2021, from https://www.philstar.com/business/2005/03/19/270921/alliance-

global-acquires-49-stake-local-mcdonald146s-franchisor