Crosscuts: Innovation x QSR & Casual Dining
Commerce Cut: China is now the world’s second-largest economy.
Crosscutting: Putting your money where your mouth is. McDonald’s (MCD) became the first foreign non-financial company to sell Yuan-denominated bonds in Hong Kong. McDonald’s issued $29M-3% Yuan-denominated bonds due 2013; A clear demonstration the brand’s global-to-local strategy of leadership, a commitment to the region, and a bet on its economy.
Brand Opportunity: The China fast food category is a $66B industry today. It will continue to grow in size as well as taste. What are the emerging insights in fast food consumption in China? How do the tastes of the rising Middle Class influence China’s masses? What can fast food business learn from other categories and western brands operating in China?
Market Risk: The economic, social and health implications typically associated with prolonged fast food exposure and diets on a society - obesity, hypertension, high cholesterol, etc. Attempting to satisfy all tastes is nearly impossible but willingness to adapt to a traditional tongues with evolving tastes will be key.