This initiative marks McDonald’s largest expansion programme in the UK for over 20 years and involves a £1bn investment by the fast-food chain and its franchisees. The expansion will focus primarily on high street locations, signalling a shift towards more accessible dining options in busy urban areas.

Celebrating 50 Years in the UK

As McDonald’s celebrates 50 years since the opening of its first UK restaurant in Woolwich, south London, the company now operates 1,435 outlets across the country. Approximately 80% of these are owned and operated by franchisees, who employ over 170,000 people. The new openings will explore innovative formats, including smaller sites and “drive-to” restaurants, reflecting evolving consumer preferences.

Market Growth and Changing Consumer Behaviour

The UK’s food-to-go market is expected to grow by 40% in value by 2028, according to grocery industry body IGD. Although recent growth has been largely driven by inflation, the volume of orders began to increase again in 2024, a trend that is anticipated to continue and become the primary driver of market performance from next year.

Global Expansion Goals Amidst Challenges

The UK and Ireland expansion plans come as McDonald’s targets the construction of 10,000 more restaurants worldwide by 2027. Despite these ambitious plans, the company reported its first quarterly sales miss in nearly four years this past February, citing weak sales growth in regions including the Middle East, China, and India.

Commitment to Growth and Job Creation

Alistair Macrow, the CEO of McDonald’s UK and Ireland, expressed excitement about the company’s future: “We have come a long way since we first opened our doors in Woolwich 50 years ago. I’m delighted that in this milestone year we are able to demonstrate our ongoing commitment to growth and announce the creation of new jobs across the country as we plan to open over 200 new restaurants over the next four years.”

Competitive Landscape and Ongoing Demand

Despite strong demand for takeaways, driven by both a return to office work and increased at-home dining, McDonald’s faces intense competition in the UK market. Earlier this year, the company lost its leading position for takeaway breakfast to the rapidly expanding Newcastle-based bakery chain Greggs.

Chris Kempczinski, CEO of McDonald’s Corporation, acknowledged the challenges, noting that globally, the company’s “value leadership has recently shrunk.” He emphasised that McDonald’s is “working to fix that with pace,” reaffirming the company’s commitment to retaining its competitive edge.

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