\n<\/p>\n
McDonald’s plans to open over 200 restaurants across the UK and Ireland over the next four years in a \u00a31bn expansion drive.<\/p>\n
“Drive to” restaurants – with a car park, a small seating area, and no drive-through – and “other smaller formats” will be tested as part of the new offer.<\/p>\n
The move would increase the fast-food chain’s UK and Ireland footprint by over a tenth to 1,700 sites.<\/p>\n
One retail expert said the company is doubling own on more “stable” markets as boycotts arising in response to the Israel-Gaza conflict continue to dent sales.<\/p>\n<\/div>\n
Alistair Macrow, McDonald\u2019s UK and Ireland boss, said the plans show its “ongoing commitment” to growth and job creation in the two countries. <\/p>\n
Over 24,000 jobs would be created by the expansion, McDonald’s said.<\/p>\n
The company also said there would be a “renewed focus” on High Street restaurants.<\/p>\n
Retail real estate expert Jonathan DeMello told the BBC rent on High Street units has “come down significantly post-covid” due to a swathe of restaurants going bust.<\/p>\n
“A huge amount of restaurant space has come back to the market,” he said.<\/p>\n
He also predicted McDonald’s would target retail parks outside of London and other towns and cities in south-east England, although he said demand has driven up rents in those locations.<\/p>\n
As well as taking advantage of cheaper rents, Mr DeMello said McDonald’s might also be responding to falling interest rates and a recovering economy.<\/p>\n
“We’ve had a cost of living crisis… But people are eating fast food,” he said.<\/p>\n
According to data from Meaningful Vision, which tracks the sector, fast-food promotions have surged by a third on last year<\/a>.<\/p>\n Experts say McDonald’s and its competitors are trying to tempt thrifty customers with cheap offers – a move criticised by health experts.<\/p>\n Danni Hewson, AJ Bell’s head of financial analysis, said “getting customers back through the doors” is a big priority for the chain.<\/p>\n “Opening new stores at a time when sales are down might seem counterintuitive,” she said.<\/p>\n “But if it can get the offer right and be in the right spot when people are taking their lunch breaks, it should be a recipe for growth.”<\/p>\n Mr DeMello said the company’s focus on the UK and Ireland in particular is also likely driven by the perceived “stability” of those markets at a time when overseas conflict has hit sales.<\/p>\n The company pulled out of Russia after its invasion of Ukraine, while boycotts in the Middle East and other countries over its perceived support of Israel’s campaign in Gaza<\/a> have also impacted sales.<\/p>\n