Political strife eats at McDonald's sales

The company said turnover at its hamburger restaurants in the capital was down 20 per cent last week from the week before.

McThai chairman and CEO Hester Chew said the company's same-store sales-growth target of 10 per cent for the first eight months of the year was achieved. But there are concerns that continued political unrest will harm sales during the rest of the year. It will be worse if the situation turns violent.

Chew called the company's year-to-date performance "satisfactory".

"As a private business, our duty is to support the community and the economy. We are confident the government can find a way to resolve this situation. The point is, how can different opinions live together?" Chew said.

"With violence, the government loses, and the opposition loses, too. The biggest loss, however, is for the people," he said.

Chew said Army chief General Anupong Paochinda's vow to rely on negotiations to return the country to peace was "good news".

McDonald's will continue its spending despite the present political and economic problems.

McThai operates 106 McDonald's branches. It recently opened four new ones, in Sukhumvit Soi 55 (Soi Thonglor), Big C Navanakorn, a Koh Samui hotel and Bangkok's Lat Krabang district.

"With expansion, we achieved growth of 30 per cent last year, with 20 per cent in same-store growth," Chew said.

The company will open its 107th branch at a service station in Bangkok's Bang Na district. Ten more are slated to open this year.

McDonald's and Channel 7 yesterday congratulated Olympic athletes, handing over Bt1 million to both gold medallists, Bt500,000 to the silver-medal winners and Bt10,000 each to all other members.

"McDonald's is delighted to play a part in supporting athletes who spread the global reputation and potential of Thailand. We support exercise for everyone. McDonald's has always placed importance on a balanced and active lifestyle by eating a variety of food and burning off calories with exercise," Chew said.