Fast Food Watch: McDonald's China Could Sell For USD 3 Billion; Starbucks Raises Prices

McDonald's restaurants in China could be sold for as much as USD 3 billion, with bidders including Beijing Tourism, ChemChina, and Sanpower, Reuters reported Wednesday.

A 20-year master franchise license is part of the deal, which has also attracted interest from international firms including Bain Capital, TPG Capital, and Carlyle Group.

At stake are 2,800 restaurants in China, Hong Kong, and South Korea. However, the South Korea outlets are being sold separately. McDonald's is also selling a large stake in its Japan operations, Reuters said.

The American burger chain is trailing behind YUM! Brands and its KFC and Pizza Hut restaurants in China for the lead in fast-food sales. Both have seen their sales damaged over the past couple of years by both a slowing economy and food quality scandals relating to meat provided by suppliers. Maybe it's me, but the idea of ChemChina owning McDonald's is not particularly appetizing.

And in other bad news, Starbucks is raising its prices. The coffee chain whose pricing model inspired a whole bunch of people to save for their future by not buying their product, has upped the price of drinks from RMB 1-2 each.

"We have always taken a long-term approach to pricing by carefully monitoring and evaluation our local market operating costs, including occupancy expenses, distribution, infrastructure, labor, innovations, and other operating costs," the company said in a bullsh*t explanation. At least their food is edible these days.

More stories by this author here.

Email: stevenschwankert@thebeijinger.com
Twitter: @greatwriteshark
Weibo:​ @SinoScuba潜水

Photo: Wikimedia