McDonald’s could create 24,000 jobs at new stores in UK and Ireland

By CNN Newsource

Published August 22, 2024 4:24 AM

By Olesya Dmitracova, CNN

London (CNN) — McDonald’s has unveiled plans to open more than 200 new restaurants in the United Kingdom and Ireland, which it expects will create over 24,000 jobs.

As part of the rollout, the fast-food giant will test new restaurant formats, such as “drive to” and smaller stores, as well as build restaurants in town and city centers, McDonald’s (MCD) said in a statement Wednesday.

The new stores will be opened as part of a target, announced in December, to build 10,000 more restaurants worldwide by the end of 2027, taking the US company’s global footprint to 50,000 stores.

“Fifty years ago, when McDonald’s first opened its doors (in the UK), the world looked a little different,” Alistair Macrow, CEO of McDonald’s UK & Ireland, said in the announcement detailing the expansion in the two countries.

“Half a century later, the UK has changed, and with it, McDonald’s has evolved too… When we opened, there was just one way to order, and now there are 11,” he added.

The growth planned in the UK represents a rise of around 14% in the number of McDonald’s stores and employees in the country, based on CNN calculations. It also entails an investment of £1 billion ($1.3 billion), the company said.

The expansion signals confidence in its prospects despite a recent slowdown in business globally. Sales at McDonald’s stores open for at least a year fell 1% in the April-June quarter from the same period in 2023, marking the first time sales dropped by that measure since the pandemic-blighted last quarter of 2020.

Sales at US stores open at least a year fell 0.7%, dragged down by fewer customers going to the company’s restaurants.

Food prices in the United States have continued to rise over the past year, but most of that increase has come from food away from home — that is, restaurants and fast-food sites — rather than the grocery store. That means eating out has become something of a luxury for many consumers.

McDonald’s, in particular, has been the focus of some Americans’ ire. A viral social media post last year showing an $18 Big Mac meal sparked a backlash only against what many customers believed was corporate greed making inflation worse. It turned out to be a single rest stop in Connecticut that had posted that price, which is double the national average. McDonald’s president has since apologized — and urged franchisees not to go rogue anymore.

The company has also faced challenges in the UK. Last year, it was overtaken by Greggs, a chain of budget bakeries, as the market leader in food-to-go breakfasts.