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MCDONALD'S gave up its plan to set up a restaurant in the new Guangzhou Baiyun International Airport, as it was only allowed to sell drinks there, the Southern Metropolis Daily reported Tuesday (Sep 20th).

The airport said that the McDonald's had won the bid to operate in an area where only beverages were allowed, and had requested for permission to sell food. The suggestion was turned down, forcing the America fast-food giant to abandon its plan.

The first place where McDonald's won the bid was in an inconspicuous corner. The airport offered it a different location, where it could not sell food, said an assistant manager with McDonald's surnamed Wang.

Wang said McDonald's hoped it would get the opportunity to enter another bid for a space in the airport.

Both the airport and McDonald's denied that the rent had paid a part in the company's decision. There are 102 shops in total in the airport, covering 15,820 square meters. The rent is 895 yuan (US$110) per square meter on average. It is 30 percent lower than the Shanghai Pudong airport, in which the rent is 1,190 yuan per square meter on average.

The Guangzhou airport was planning to reduce the rent for a second time to relieve the pressure of shop owners. It would also regulate the prices at airport franchises.

Editor: Wing