Golden Arches Development Corp. (GADC), the master franchise owner for McDonald’s restaurants in the Philippines, is expanding its partnership with Corenergy Inc. to supply power to 23 more restaurants across Visayas and Mindanao.
Corenergy, the retail electricity supplier (RES) of Vivant Energy Corp., will supply power to 10 McDonald restaurants across Leyte and Western Visayas and 13 all over Northern Mindanao and Davao Region, with a combined contestable load of approximately 2.2 megawatts. The latest RES deals raised the total partnership to 59 operating stores being connected to COREnergy.
Through the ‘retail competition and open access,’ or ‘Rcoa,’ framework, qualified electricity consumers can choose their electricity supplier. The Retail Aggregation Program (RAP) under the framework, allows businesses with multiple electricity accounts, such as McDonald’s, to combine their electricity requirements and source their power collectively from a licensed RES such as COREnergy. Electricity makes up about 72 percent of McDonald’s utility costs. The latest deal is estimated to cut monthly electricity costs by 10 percent to 14 percent per restaurant.
‘McDonald’s remains committed to keeping the value and affordability our customers expect within reach,’ said Margot B. Torres, managing director of McDonald’s Philippines (GADC). ‘As we continue to grow our restaurant network, we’re also looking at ways to operate more efficiently and make thoughtful investments that support our business for the long term. By finding efficiencies in significant operating expenses such as electricity, we can continue to strengthen our restaurants while delivering the quality food and customer experience that McDonald’s is known for.’ The partnership comes as McDonald’s continues to invest and grow across the Visayas and expand its restaurant network nationwide. In Cebu alone, the company opened eight new stores this year, creating employment opportunities and bringing McDonald’s closer to more communities. meanwhile said.
‘We want to take the complexity out of power so businesses like McDonald’s can focus on what they do best – serving customers, growing their operations, and creating new opportunities,’ he added. ‘When companies have greater control and predictability over their energy costs, they can devote more attention to improving their operations and delivering the quality and service their customers expect,’ said Francis S. del Val, president of Corenergy.
The latest agreement is also part of McDonald’s broader rollout of RAP across its restaurant network. By year-end, GADC aims to transition approximately 64 percent of its RAP-eligible restaurant portfolio under the program, bringing the benefits of more competitive rates and greater cost predictability to a significant share of its footprint.