Although it may seem like McDonalds is everywhere wherever you go, you might be surprised to learn that their penetration in Eastern Europe and Russia is predominantly low. Now, with the neighboring regions starting to recover from the recession that struck them late last decade, McDonald’s is on a path to break into the new markets and get their share in the the fast-food industry.
McDonald’s total investment in these two regions is a good indicator that they are being serious in being a threat for its competitors in those regions. In Russia alone they plan to open 45 new restaurants, totaling $120 million, while spending another $15 million to renovate its 300 current locations. By 2016-2017 they have ambitious plans to open 75 new restaurants per year. In Eastern Europe where their presence is next to non-existent, the fast food giant is set to open a number of restaurants throughout countries to seriously increase their presence and accessibility, and not only in capital cities of the countries that make up Eastern Europe.
As these markets fall under the medum-to-high income groups, McDonalds’s low price meals should create a strong formula for success in the region, but only time will tell if the world’s largest fast food chain will successfully make a breakthrough into the new markets.
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One reply on “McDonalds To Break Into New Markets”
McDonalds has such powerful branding, its definitely a topic that comes up frequently in marketing. Great use of statistics to supplement your thoughts!