The crisis slows McDonald’s network’s growth rate

“This is a satisfactory increase for us, considering the current economic context,” Cristian Savu, Communication Manager of McDonald’s Romania, told Business Standard.

The company targets net sales exceeding €110 mln in 2009. Its investment plan includes opening six new units, most of which in Bucharest shopping centers.

“We will invest some €20 million in opening new locations and modernizing some of the existing ones,” the company official added.

Although the growth rate of business slowed due to the crisis (the Q1 2009 – Q1 2008 growth rate was eight percentage points lower than the Q1 2008 – Q1 2007 growth pace), Savu said that the registered business reflects the good management of the effects of the economic crisis.

McDonald’s presently has 58 restaurants, with more than 4,000 employees, and it ended 2008 with €108 mln worth of net sales. The average investment in a restaurant is €1.5 mln.

The value of the local fast food restaurant market was estimated at €2 billion in 2008. The main competitors of McDonald’s locally are KFC, Burger King, Gregory’s, Snack Attack, and Spring Time.