McThai, Co. Ltd., the leader in the quick-service restaurant (QSR) business under the McDonald’s Thailand, achieved record-breaking operating results in 2023 since its establishment in 1985. The company has surpassed expectations, raking in over 7.2 billion baht in revenue. This remarkable achievement accelerates the formation of robust strategic moves aimed at further strengthening its leadership in the QSR market, with plans to achieve over 15% growth in 2024.
Ms. Kittiwan Anuwatesakul, Chief Executive Officer of McThai Co., Ltd., stated “In the past year, 2023, McDonald’s delivered efficient operating results, with sales reaching 7,213 million baht, the highest in its history since its establishment in Thailand over 38 years ago. This marks a 31% increase from 2022, where total sales were 5,504 million baht. Additionally, net profit reached a new high at 315 million baht, representing a 168% increase from the previous year. This exponential success can be attributed to burgers remain a staple in McDonald’s portfolio, continuing to win the hearts of both Thai and foreign customers, with a revenue proportion of up to 53%., while McFried Chicken, which generated a 40% growth rate.”
- Year 2022: Total sales were 5,504 million baht, with profits at 120 million baht (a 276% increase from 2021).
- Year 2023: Total sales were 7,213 million baht, with profits at 315 million baht (a 168% increase from 2022).
Flagship Value Platform: Satisfies Customers’ Needs with ‘Value for Money’
No matter how much times change, ‘delicious’ and ‘value for money’ remain at the heart of the food business. McDonald’s continues to serve quality food at a worthwhile price, offering a variety of menus for customers to choose from for lunch, afternoon, or dinner. The ‘Everyday Value Meals’ (EVM) set includes options such as burgers and McFried Chicken, priced at only 99 baht, and the ‘McSavers 1+1’ set, priced at only 55 baht, where customers can pair up their preferred choice of snack and dessert. In the previous year, the EVM and ‘McSavers 1+1’ sets saw impressive growth rates of 47.8% and over 12%, respectively.
BIC & Chicken Leadership: Winning Gen Z with McFried Chicken
The fried chicken market in Thailand continues to grow, with a value exceeding 31,026 million baht in 2023* thus McDonald’s plans to capitalize on this growth by further promoting its McFried Chicken, which experienced a 40% growth rate in 2023 due to the new revamped recipe offering crispy chicken on the outside and tender on the inside with intense flavor. In 2024, we have introduced ‘DAOU x OFFROAD’ as the representative of Gen Z as McDonald’s aims to increase access to this demographic, with the latest campaign resulting in a sales increase of over 50%, especially for the popular McFried Chicken bucket set. Various campaigns and promotions for McFried Chicken will continue throughout the year, especially during important festivals celebrated among friends, couples, and families in Thailand.
Burger Leadership: Emphasizing the Authenticity of High-Quality Burgers
Burgers remain a staple in McDonald’s portfolio, continuing to win the hearts of both Thai and foreign customers. McDonald’s employs a marketing strategy emphasizing leadership in quality and taste, focusing on the concept of ‘Hotter, Juicier, Tastier,’ which was launched in late 2023 to target burger lovers. The brand expects to further increase sales by highlighting the quality and taste of its burgers, made with 100% beef imported from Australia, grilled using a special method, and served on McDonald’s Softer Glazed Bun, a special recipe bread to differentiate itself from competitors. With this strategy, the brand believed it can be increase in sales revenue in 2024.
Experience of the Future (EotF): Modern Service Experiences Meeting Modern Customers’ Needs
McDonald’s aims to create an excellent dining experience for its customers beyond taste and value for money by incorporating modern technology, such as Self-Ordering Kiosks (SOK), that support cashless payments for more convenient and quicker service. Additionally, services like table service and guest experience leaders (GEL) are in place to ensure customers are well taken care of. This makes McDonald’s the only brand in the QSR industry that values and offers the best experience for its customers. McDonald’s also plans to provide 100% modern service by the end of the year.
Store Expansion: Creating New Branches, New Designs, and Focus Customers Insights by Embracing Sustainability
In 2024, McDonald’s is moving forward by opening more than 20 new branches and renovating 25 existing branches with designs tailored to the needs of every customer group, focusing on creating a relaxing and enjoyable atmosphere. In 2023, we launched two new design stores, The Mall Life Store Bang Kapi and Bang Khae, featuring the ‘Geometry’ concept, modern décor, and unique patterns in bright colors. This year, we plan to introduce two new design concepts: the ‘CUBE’ concept, inspired by the joy of unboxing a Happy Meal and transforming childhood memories into a tangible space, and the ‘Essential Ingredients 2.0’ concept, which incorporates dynamic shapes and various colors to reflect McDonald’s identity. These designs will be conveyed in the form of fun pop art. Furthermore, McDonald’s continues to prioritize sustainability with ESG principles, emphasizing green and sustainable practices to align with the rapidly changing lifestyles and behaviors of customers. Prototype branches will feature carefully decorated interiors and exteriors using recycled materials, creating a lush atmosphere with added green spaces. Solar panels on the roof (Solar Rooftop) will harness solar energy to its full potential, while electric vehicle charging service points (EV Charging) will be installed to accommodate electric cars, expected to be fully operational by the second quarter of 2024.
“In the face of increasing challenges in the QSR business, we remain confident that our strong offensive operating strategy, backed by a total investment budget of over 600 million baht, will drive McDonald’s to success and achieve over 15% growth this year,” concluded Ms. Kittiwan.
