U.S. fast-food giant McDonald’s Corp. formed a five-year strategic alliance Friday with China subway operator Shenzhen Metro Group Co. under which McDonald’s will have first pick of the prime retail spots in the subway operator’s underground commercial spaces and above ground property projects.
The company also said it plans to open more outlets in commercial property projects in Shenzhen, though it didn’t say how many. The U.S. company has more than 80 outlets in Shenzhen now.
The agreement, which will also bar competitors from opening outlets within a certain distance of McDonald’s outlets, could help the company meet its goal of increasing the number of its China outlets to 2,000 from the current 1,100 in three years.
McDonald’s said in March it plans to open 150 to 175 outlets in China this year, creating 10,000 jobs.
McDonald’s opened its first China outlet in Shenzhen in 1990 and now employs more than 60,000 people in the country.
