McDonald’s - A Franchise Model that Favors Its Massive Expansion in Asia
McDonald's success reflects its innovative franchise model, which has fueled its massive global expansion. By combining local adaptability with a consistent brand experience, McDonald's has built its presence worldwide, being the top of fast food culture.
At a glance
Founded
1940
Revenue
US$ 25 billion
(as of November 2023)
Outlets
40,000+
In 100 countries
Industry
Fast Food
Abstract
This case study explores McDonald's remarkable success in Asia, highlighting its strategic use of franchising, cultural adaptation, and technological innovation. The McDonald's model thrives on strong franchisee relationships, allowing for global expansion while maintaining brand consistency. However, there are also challenges, such as intense local competition, diverse regulatory environments, and varying living costs across the continent.
Key findings reveal how McDonald's adapts its menus to local tastes while maintaining iconic elements. Additionally, the case study emphasizes the company's embrace of technology - self-service kiosks, digital menus, mobile ordering, and AI-driven operations - to cater to tech-savvy Asian consumers. The strategic re-franchising model empowers local partners and facilitates deeper market penetration.
Overall, the case explores McDonald's ability to leverage its franchising model, localize products and marketing, and integrate technology to achieve market dominance in Asia, solidifying its position as a global fast-food leader.
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Disclaimers:
(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.
(2) Regarding University Affiliation and Titles of Authors: The university affiliation and titles of author(s) seen in the case study is based on their affiliation and title during the time of publication. It may or may not represent the current status of said author(s).