Fast food giant McDonald's Corporation announced yesterday in Shanghai a plan to invest 50 percent more into its Chinese mainland operations and add 250 stores, including drive-throughs, McCafes, kiosks and 24-hour restaurants, by the end of 2012.

McDonald's China CEO Kenneth Chan said at a press conference yesterday that more than 40 percent of McDonald's new stores will feature the drive-through service, without providing the specific value of the investment.

McDonald's introduced a pilot franchise program in the Chinese mainland last August, moving from its sole reliance on self-operated stores, to expand its market share in the country.

By the end of 2011, nine franchisees had opened 36 outlets across the country.

About 80 percent of McDonald's global outlets are operated by franchisees, according to the fast food chain's annual report in 2011.

Du Guankai, a business model analyst at Ernest & Young specializing on the catering industry, told the Global Times yesterday that McDonald's entered the Chinese mainland market much later than its major competitors and the franchise model will help the fast food chain to further expand its presence.

"The franchise model requires less capital input, and it will help accelerate the pace of expansion," Du said.

"McDonald's expansion plan in the market is certainly ambitious and it has started targeting third-tier cities, instead of just focusing on the country's coastal cities."

The fast food chain currently has 1,400 outlets across the country, after entering the market in 1990.

The mainland market is now McDonald's third largest market, after the US and Japan.

McDonald's main competitor KFC, managed by US-based Yum! Brands, had more than 3,200 stores in China by the end of 2010.

KFC has created a mature demand in third- and forth-tier cities based on it franchise model, and McDonald's should push such a business model in order to gain a larger portion of the fast food market in the country, Du said.