McDonald’s targets Gold Coast drive-through growth strategy as people line up to buy a franchise
Just four licensees operate most of the Gold Coast’s 38 lucrative McDonald’s outlets, with some stores handed down through generations like precious family heirlooms. Here’s who they are.
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FAST food giant McDonald’s is gobbling up potential double-drive-through corner sites in its quest to ensure no Gold Coaster is more than 10 minutes away from the golden arches.
While Bulletin readers have expressed their distaste over the takeaway monarch’s expansion, local wallets say otherwise, with Gold Coasters’ appetite for McDonalds making local franchises some of the most sought-after in the country.
Just a handful of families operate many of the 38 outlets from Beenleigh to the Tweed, with some lucrative stores handed down through generations like precious family heirlooms.
The Bulletin understands Maccas, while cooking up a deal on Westfield’s former NightQuarter land, has also acquired a taste for east Coomera’s booming Foxwell Rd.
The new outlet is set for delivery near the proposed new Costco warehouse and petrol station, alongside Westfield’s Coomera Town Centre.
Four licensees dominate the McDonald’s landscape on the Gold Coast including Michael Power in the north, who operates the Upper Coomera, BP Coomera, Oxenford, Pimpama and Siganto Dr Helensvale stores.
A little way down the Coast, Michael and Ben Atkins run Pacific Pines, Hope Island and Harbour Town.
On the southern end, Dean Watter is the city’s biggest holder of McDonald’s outlets by number, operating Robina Town Centre, Robina North, Nerang, Burleigh Heads, Burleigh Waters, Palm Beach, Elanora and Tugun.
Jonathon Pitt’s portfolio includes Westfield Helensvale, Ashmore, Benowa, Merrimac, Broadbeach, Pacific Fair and Mermaid Waters.
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Mr Pitt said was proud to own and operate McDonald’s restaurants.
“I’ve been fortunate enough to be a licensee at McDonald’s for 17 years, and now own and operate eight restaurants across the Gold Coast region,” he said.
“Across my restaurants, I’m proud to provide employment opportunities for 650 members of the local Gold Coast community.
“I’m privileged to lead a team of employees who are committed to providing exceptional service and support for the local Gold Coast community.”
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McDonald’s Australia Limited has a formidable national property portfolio, snapping up prime sites mostly for lease back to its franchisors.
While the company eyes new stand-alone sites, it is quietly withdrawing from outlets inside shopping centres, including the Runaway Bay Shopping Village store, which closed late last year.
Insiders say the strategy has been hastened by a COVID-19 focus on streamlining drive-through and delivery services, with drive-throughs now accounting for the lion’s share of store revenue.
“They’ve been focusing on speed of service through the drive-throughs as well as the digital app,” one source said.
“Where drive-through revenue previously accounted for 60-70 per cent of revenue, it has risen substantially from there.”
McDonald’s stores along the Coast have progressively upgraded their drive-throughs to dual-lane operations, essentially doubling the volume of customers they can serve.
Andrew Swaney, McDonald’s Head of Property for Queensland, said the company was constantly reviewing its portfolio.
He said licensees and customers had embraced the dual lane drive-throughs which were designed to improve functionality and reduce waiting times.
“McDonald’s is proud to employ approximately 4000 members of the local Gold Coast community,” he said.
“The Gold Coast region continues to be a focus for the McDonald’s business and we look forward to reinvesting in a number of existing Gold Coast restaurants across 2021 and 2022 as well as reviewing new restaurant growth opportunities.
“The upgrades will allow us to more efficiently serve our customers by enhancing their experience across drive-thru, in-restaurant dining, McCafe and McDelivery.”
The Gold Coast was the birthplace of McDonald’s in Queensland, welcoming the state’s first franchise at Mermaid Beach in 1975.
The upstairs area featured the kitchen and front counter while there was a water feature which ran down into the lower floor where a children’s playground and dining area was built.
That outlet closed in 1998, with the site now home to the Mermaid Tavern.
According to the most recent public financial report of the Chicago-based parent company, for the September 2020 quarter, positive comparable sales in Australia had helped to partly offset negative comparable sales in France, Spain, Germany and the UK.
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