McDonald’s Philippines is expanding its electricity supply partnership with COREnergy to 23 more restaurants in the Visayas and Mindanao, seeking to lower power costs and make a major operating expense more predictable as it grows its nationwide network.
The expanded agreement covers 10 restaurants in Leyte and Western Visayas and 13 in Northern Mindanao and the Davao Region, representing a combined contestable load of about 2.2 megawatts.
The addition brings to 59 the number of operating McDonald’s restaurants connected to COREnergy, the retail electricity supplier of Vivant Energy.
Electricity accounts for about 72 percent of McDonald’s total utility expenses. Initial estimates indicate participating restaurants could cut monthly electricity costs by 10 percent to 14 percent per store.
“McDonald’s remains committed to keeping the value and affordability our customers expect within reach,” McDonald’s Philippines Managing Director Margot B. Torres said.
Torres said improving efficiency in major operating expenses such as electricity would allow the company to strengthen its restaurants while maintaining food quality and customer experience as its network expands.
The partnership uses the Retail Aggregation Program under the Retail Competition and Open Access framework, which allows businesses with multiple electricity accounts to combine their requirements and procure power from a licensed retail electricity supplier.
McDonald’s aims to transition about 64 percent of its RAP-eligible restaurant portfolio to the program by year-end.
The initiative comes as the fast-food chain continues to expand, particularly in the Visayas. McDonald’s has opened eight new stores in Cebu this year as it adds locations while pursuing measures to improve long-term operating efficiency.
For a restaurant network where electricity makes up nearly three-fourths of utility costs, even modest savings can add up quickly as more stores come online.
