Register now, it's free! |
Classy decor, high-quality food push region above U.S. in revenues
The Atlanta Journal-Constitution
Published on: 07/24/08
London — McDonald's, as American as apple pie and baseball, has become a bigger hit in Europe than on its home turf, despite many Europeans' disdain for fast food.
[ Post your comments below. ]
McDonald's | ||||
| McDonald's is looking at bringing European store designs from its Paris-based studio – complete with soft 'mood' lighting – to the United States. | ||||
| ||||
A big part of the reason is upgraded menus and high-design restaurants that have been so successful that they may be exported to the United States.
The nation's largest hamburger chain reported Wednesday that it swung to a profit in its second quarter, helped in large part by a 7.4 percent increase in sales in Europe.
Europe is now the company's largest region by revenues, despite having only about one-fourth as many outlets as in the United States. Last year, revenues were $8.9 billion in Europe, compared with $7.9 billion in the United States.
With Europeans so bent on healthy eating, how has McDonald's lured so many customers?
According to analysts and company officials, the company has succeeded with the help of classy designs and an emphasis on high-quality food.
Indeed, Americans in Europe seeking a little taste of home might be dismayed by what they find under the familiar golden arches.
"A huge chunk of the company's success comes from giving locals the kind of foods they like, instead of force-feeding American menu items to them," said Ron Paul, president of Technomic Inc., a Chicago-based restaurant research firm.
There's porridge in Britain and pasta freshly cooked to order in Italy. In France, there's a smaller-sized burger on a ciabatta roll slathered with a sophisticated mustard sauce — and served with a glass of wine.
The restaurants' decor is another culture shock.
Green swivel armchairs. Modernist murals. Elegant wood, leather and stainless steel instead of retro plastic and Formica fittings.
Even the Ronald McDonald play areas have been given a face-lift and rechristened Ronald Gym Clubs. Pits full of plastic balls have been replaced by climbing walls, bicycle simulators and basketball hoops with electronic scoreboards.
"Contemporary design has played a very important part to make McDonald's a destination," said Carmen Vroonen, a spokeswoman for McDonald's Europe.
During the 1990s, growth at McDonald's Europe was mediocre at best. But then Denis Hennequin, the head of McDonald's in France, asked to recreate the chain's standardized template into a bistro-like cafe. Soon France was the company's most profitable market in Europe.
In 2005, Hennequin became the first non-American to hold the job of president of McDonald's Europe since the company arrived on the Continent in 1971.
Since then, the overhaul of the restaurants and their menus throughout Europe has been dramatic.
Thanks to the upgrades, Steve West, restaurant analyst with St. Louis brokerage Stifel Nicolaus, predicts that McDonald's will enjoy 9 percent growth in European sales in 2008.
"The remodels have had a positive impact on the performance of the stores," he said. "They are cleaner and nicer looking and more relevant to local tastes than the previous cookie-cutter versions."
Last year, McDonald's remodeled 640 restaurants in Europe, with another 805 on tap this year. This represents a significant investment, considering that the work can cost between $411,000 and $686,000 on average.
Vote for this story!
More on ajc.com
- Upscale makeovers power MacDonald's European revenues past those in the U.S. (07/24/2008)
- Classy designs meet quality (07/24/2008)
- Five best bets to win the Masters (04/02/2008)
- McDonald's sales jump, led by growth in Europe (03/11/2008)
- Luxury hotels offer $19.28 per night (09/30/2008)
- Dexia bank gets $9.2 billion bailout (09/30/2008)
- Stocks tumble as bailout plan fails in House (09/29/2008)
- European banks bailed out as crisis spreads (09/29/2008)
- NATION IN BRIEF: Cuban migrants fewer (09/29/2008)
- Hawaii judge stops doomsday lawsuit over collider (09/28/2008)
Related Subjects
Inside AJC.COM
Weekend web fares
With more than 25 cities, the weekend travel deals are here. Example: NYC for $69.
A Christmas Story Quiz
How well do you know the cult holiday classic? Be careful or you will shoot your eye out.
A Charlie Brown Quiz
Do you know what TV show was pre-empted to show this holiday classic? Test yourself.




DEL.ICIO.US







Comments
By Jordan
Aug 24, 2008 7:47 PM | Link to this
RITA, YOU ARE A MORON.
Remember saying this?-
"I only eat the Egg McMuffins...the burgers have way too much fat in them.."-Rita
McDonald's Hamburger---8 grams of fat.
Egg McMuffin----------------12 grams of fat.
By Artsy Nova
Aug 10, 2008 9:56 PM | Link to this
Did Rave Dome really said "nutrition" or was just kidding? C'mon, if McDs really want to be "the fast food place to rave about" they really need to have real food. To have a good name in this day and age they need to be up to date with the taste and calories, and let's be realistic, McDs was never too keen on the first nor too low on the latter. It's only the place to go if there's nothing around and you don't like Mexican food -and we know they are always around...
By Jay Newington
Jul 25, 2008 1:21 AM | Link to this
Life imitating "Art...?" Does anyone see the ridiculous parallel with Taco Bell as the swanky " in place to be" as depicted in the movie "Demolition Man?" This is an eerie foreshadowing of things to come... In San Diego (San Angeles?) Mc Donald's has introduced the "Mc Donald's Bistro" in the high end Del Mar Heights neighborhood... The fare includes fresh gourmet pasta dishes and "chi-chi" salads... Is it good business..? It smacks of gimmickry...They will always be the home of .99 cent double cheeseburgers...
By Rita
Jul 24, 2008 4:21 PM | Link to this
I only eat the Egg McMuffins...the burgers have way too much fat in them..the grilled chicken sand. is awful.
By Rita
Jul 24, 2008 4:20 PM | Link to this
I only eat the Egg McMuffins...the burgers have way too much fat in them..the grilled chicken sand. is awful.
By CBL
Jul 24, 2008 12:55 PM | Link to this
I've experienced first-hand the new concept in Austria. The food menu has the same Big Macs, etc. but with a couple of local specialties thrown in as well. The other side of the restaurant is called McCafe and specializes in coffee drinks and desserts but at half the cost of Starbuck's. The locals love it.
This concept is ealready being done in the USA- you can get Spam burgers in Hawaii at McD's.
By MMK
Jul 24, 2008 12:39 PM | Link to this
I much prefer the European menu of McDonald, its tastier and seems fresher than what we get here... also to say that the decor of the store is not important is not valid, eating in a pleasant, clean atmosphere certainly enhances the pleasure of eating .
Same thing at home I like to set a nice table, with flowers if possible, even the kids notice it and make comments.
C'mon lets be civilized !
By Erik
Jul 24, 2008 12:18 PM | Link to this
I only eat McDonalds when constipated, work within 15 minutes, GUARANTEED!
By Rave Dome
Jul 24, 2008 11:29 AM | Link to this
That aint tired rhetoric Randy. That's what they need to address next (factory meat farming). But this is a great step in the right direction. Kids like the McD's playground, and it's a huge help to me as a parent of 2 boys. Now that I can get apple fries etc. the nutrition of the meal is (almost) worth taking my kids there. We go almost every weekend, and the new stores are nice. The newest one around is on Buford, close to 285.
By Randy
Jul 24, 2008 9:14 AM | Link to this
Oh shut up DaveD with what it does to the environment and animals. Tired rhetoric.
[1 2] next
Commenting is open from 8 a.m. to 5 p.m. M-F, except on Tuesday when it's open until 9 p.m.
Post a comment
*HTML not allowed in comments. Your e-mail address is required.
Request a comment be removed