McDonald's wants a digital-age makeover
All-things-plastic interiors will be replaced with comfy chairs and an iPod-like look, but Ronald McDonald and the golden arches get to stick around.
Excerpts:
'Think iPod'
The dining area will be separated into three sections with distinct personalities. The "linger" zone will offer comfortable armchairs, sofas, and Wi-Fi connections. "The focus is on young adults who want to socialize, hang out, and linger," says Dixon. Brand consultant Robert Passikoff, president of Brand Keys, a brand consulting firm, says that Starbucks has raised the bar: "A level has been set by Starbucks, which offers the experience of relaxed chairs and a clean environment where people feel comfortable hanging out even if it's just over a cup of coffee."
The "grab and go" zone will feature tall counters with bar stools for customers who eat alone; plasma TVs will offer them news and weather reports. And in the "flexible" zone, families will have booths featuring fabric cushions with colorful patterns and flexible seating. The new design allows different music to be targeted to each zone.
A 21st-century look is expensive
McDonald's won't confirm the cost of a redesign. Richard Adams, a former franchisee and consultant to current owners, estimates they will have to pay $300,000 to $400,000 to renovate an existing outlet -- an amount roughly equal to a restaurant's annual profit. Tearing down a store and rebuilding from scratch could cost $1 million, Adams says. The franchisees will have to pay for the renovations themselves, which has some of them seething. "Many franchisees are dead set against this change, especially because they already spent millions remodeling their restaurants in the past four years," says Adams.
In a recent letter to management at the company's headquarters in Oak Brook, about 160 franchisees from North Carolina spelled out why they oppose the new plan. They say the roof change erases 40 years of brand building and that "there has been no business case presented which justifies the change." Says Frederick Huebner, who owns 11 McDonald's in North Carolina: "We don't want to lose the iconic look of what we've got." If franchisees balk, McDonald's can refuse to renew their contract.
Right now, only 20 recently opened restaurants in the U.S. sport the makeover in its entirety. Another 20, primarily in Tulsa, Okla., and Columbus, Ohio, have been completely remodeled. All brand-new restaurants will have to hew to the redesign blueprints, and by the end of 2006, more than half of the 13,720 U.S. restaurants will feature some element of the design. Says Gensler's Bricker: "It's something that McDonald's has to do if it wants to be part of the 21st century."
http://moneycentral.msn.com/content/invest/extra/P150732.asp?GT1=8180
Excerpts:
'Think iPod'
The dining area will be separated into three sections with distinct personalities. The "linger" zone will offer comfortable armchairs, sofas, and Wi-Fi connections. "The focus is on young adults who want to socialize, hang out, and linger," says Dixon. Brand consultant Robert Passikoff, president of Brand Keys, a brand consulting firm, says that Starbucks has raised the bar: "A level has been set by Starbucks, which offers the experience of relaxed chairs and a clean environment where people feel comfortable hanging out even if it's just over a cup of coffee."
The "grab and go" zone will feature tall counters with bar stools for customers who eat alone; plasma TVs will offer them news and weather reports. And in the "flexible" zone, families will have booths featuring fabric cushions with colorful patterns and flexible seating. The new design allows different music to be targeted to each zone.
A 21st-century look is expensive
McDonald's won't confirm the cost of a redesign. Richard Adams, a former franchisee and consultant to current owners, estimates they will have to pay $300,000 to $400,000 to renovate an existing outlet -- an amount roughly equal to a restaurant's annual profit. Tearing down a store and rebuilding from scratch could cost $1 million, Adams says. The franchisees will have to pay for the renovations themselves, which has some of them seething. "Many franchisees are dead set against this change, especially because they already spent millions remodeling their restaurants in the past four years," says Adams.
In a recent letter to management at the company's headquarters in Oak Brook, about 160 franchisees from North Carolina spelled out why they oppose the new plan. They say the roof change erases 40 years of brand building and that "there has been no business case presented which justifies the change." Says Frederick Huebner, who owns 11 McDonald's in North Carolina: "We don't want to lose the iconic look of what we've got." If franchisees balk, McDonald's can refuse to renew their contract.
Right now, only 20 recently opened restaurants in the U.S. sport the makeover in its entirety. Another 20, primarily in Tulsa, Okla., and Columbus, Ohio, have been completely remodeled. All brand-new restaurants will have to hew to the redesign blueprints, and by the end of 2006, more than half of the 13,720 U.S. restaurants will feature some element of the design. Says Gensler's Bricker: "It's something that McDonald's has to do if it wants to be part of the 21st century."
http://moneycentral.msn.com/content/invest/extra/P150732.asp?GT1=8180
posted by t12cjc | 11:50 am
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