McDonald’s has announced that it is expanding further into the United Kingdom and Ireland. The international fast-food giant has revealed that it will be creating 24,000 jobs and spending the equivalent of more than $1 billion on this latest effort. Let’s take a look at what we know about this expansion.

McDonald’s Is Spending Big Bucks on Golden Arches Expansion

According to The Guardian, over the next four years, McDonald’s plans to open more than 200 outlets in the UK and Ireland, adding over 24,000 new jobs as it ramps up its expansion in response to the growing demand for takeout.

The strategy, which is supported by a £1 billion ($1.31 billion) investment by the fast-food chain and its franchisees and focuses on high street sites, is the U.S. company’s largest expansion initiative in the UK in over 20 years.

This year marks McDonald’s 50th anniversary of opening its first location in the United Kingdom in Woolwich, south London. Of the 1,435 McDonald’s locations in the nation, approximately four-fifths are owned and run by franchisees who employ over 170,000 people.

The proposed locations will serve as test sites for novel formats, such as drive-through restaurants — a concept that is still relatively new in the British market — and smaller venues.

“We have come a long way since we first opened our doors in Woolwich 50 years ago,” said Alistair Macrow, the chief executive officer of McDonald’s UK and Ireland, to the outlet. “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.”

The food industry association IGD projects that the value of the UK food-to-go market will grow by 40% by 2028. Inflation has fuelled growth in previous years, but in 2024, the amount being ordered started to rise once more. It is anticipated that this pattern will hold true and start to influence performance the next year.

Plans to expand into the UK and Ireland were made public after McDonald’s stated that it intended to add 10,000 new locations worldwide by 2027.

But in February, the multinational corporation announced its first quarterly sales shortfall in almost four years as a result of pressure from feeble sales growth in its business segment, which encompassed China, India, and the Middle East.

Strategic Partnerships

With its latest move into the UK, McDonald’s is continuing to prove it has cornered the market on fast-food, and on a global scale. The chain has also recently announced its latest strategic partnership with Krispy Kreme, with plans to expand in the United States later this year.

Verdict Food Service reports that Krispy Kreme is preparing to launch its doughnuts in McDonald’s outlets across the country, which will represent a significant growth in its business. Fall of 2024 will see the launch begin in Chicago, Illinois.

85% of McDonald’s outlets in the United States will have Krispy Kreme doughnuts by the end of the year, with an additional 5,000 by 2025 and 6,000 by 2026.

According to Krispy Kreme CEO Josh Charlesworth, the company is constantly modernizing its doughnut production processes. A committed staff is working with clients like McDonald’s to ensure a smooth rollout. The company is focusing on hiring and training manufacturing specialists, updating its production lines, and continuously enhancing its manufacturing procedures.

Krispy Kreme is also improving its fleet and routing in order to increase the efficiency of its production centers and increase its distribution capabilities.

In the company’s second-quarter 2024 earnings call, Charlesworth said, “We have a dedicated cross-functional team there to make sure the facilities and our people are ready. In fact, we’re also making improvements to the production lines and even doing our best to improve productivity and up our game as we go.”