US fast-food firm to open more than 200 restaurants as part of £1bn plan that will focus on high street locations
McDonald’s is to open more than 200 restaurants across the UK and Ireland over the next four years, creating about 24,000 new jobs as it steps up expansion amid a rise in demand for takeaways.
The plan marks the US company’s largest expansion programme in the UK for more than 20 years and is backed by a £1bn investment by the fast food chain and its franchisees with a focus on high street locations.
McDonald’s, which this year celebrates 50 years since it opened its first UK store in Woolwich, south London, has 1,435 restaurants across the country, with about four-fifths owned and operated by franchisees who employ more than 170,000 workers.
The planned outlets will include tests for new formats including smaller sites and “drive to” restaurants.
The UK food-to-go market is expected to expand by 40% in terms of value by 2028, according to the grocery industry body IGD. In recent years, growth has been driven by inflation but the amount being ordered began increasing again in 2024. That trend is expected to continue and become the key driver of performance from next year.
The UK and Ireland expansion plans were announced after McDonald’s revealed a target of building 10,000 more restaurants globally by 2027.
However, in February the global business reported its first quarterly sales miss in nearly four years after being squeezed by weak sales growth in its business division that included the Middle East, China and India.
Alistair Macrow, the chief executive officer of McDonald’s UK and Ireland, said: “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.”
Strong demand for takeaways continues, driven by a return to office working and those based at home treating themselves.
However, there is heavy competition in the UK, with McDonald’s losing the top spot for takeaway breakfast earlier this year to the Newcastle-based bakery chain Greggs, which continues to expand rapidly.
Chris Kempczinski, the chief executive of McDonald’s Corporation, said that globally it was “clear that our value leadership’ has recently shrunk”. He pledged the company was “working to fix that with pace”.