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Tuesday, January 30, 2007

McDonald's has a New Look


Comfortable armchairs, hanging lights, WiFi access, premium coffee. McDonald's is growing up. Its been thirty years since the company had re-designed their stores. About forty million people visit McDonald's daily and the number continues to climb. The company has tried several strategies to sustain their share of the market. Changing their menu was a first step. The company introduced the snack wrap which became very popular and added to the overall bottom line of McDonald's. It was heavily promoted and became a hit because it was inexpensive and convenient to enjoy. McDonald's has moved towards healthier items by introducting their Premium Salads targeted to women and their upscale Asian Chicken Salads. Although these new items are growing, many customers often find it hard to adjust to these upscale menu items with the existance of old plastic labeling and surroundings. McDonald's has promised to be a 'forever young brand'. Its even included in their mission statement. The last major design change for McDonald's was their 1980's Play Places for children. Its time for change. The new McDonald's will feature bold, modern colors, stripes, and a sleek roof. Big red roofs are out, while flat roofs with a golden curve is in. Ronald McDonald still stays but with a classy image. McDonald's hired New York based design firm, Lippincott Mercer. The company has an impressive resume including the re-design of Nissan car dealerships to promote their new luxury car line. Because of this, the auto company experienced a 5% increase in sales. McDonald's wants in. The traditional yellow and red colors will remain but bold olive greens and terra cotta red will be added. The company wants to move away from the old plastic look to more brick oven exteriors. They want respect for their brand and I don't blame them. We often enter McDonald's and the surrounding is greasy, dirty and noisy...it wouldn't hurt to modernize a bit. With this transition, I think people will grow to admire McDonald's and customers will be loyal to the brand. The company stated that they are moving towards the young adult crowd in search of a place to lounge with fast-casual, healthy food... what better place than the good old (oh.. NEW) McDonald's. This sounds a bit like Starbucks to me... but most likely I'm positive that it will work. The new McDonal's will feature several "zones" for customers. The "Linger Zone" will be made for lounging, complete with sofas and WiFi connections. The "Grab n Go Zone" will allow customers to eat alone, take out or relax with plasma TVs offering news and weather reports. "Flexible Zones" will be for families. Ultimately the company wants to offer more selections with healthier choices. By making this transition, it adds to the casual feel and customers will be attracted and purchase healthier foods being offered. Franchisees are skeptic about this idea. The initial cost to renovate 30,000 eateries around the world into an upscale restaurant will cost millions, perhaps billions of dollars (thats like building a whole new company). Where would this money come from? The franchisees. McDonald's has tried to branch out into the fast-casual market. They currently own Chipotle Mexican Grill which has been a lasting success. I feel for the franchisees, but this move will be great for the company in that a broader market will be catered to by McDonald's. I would like to hear your thoughts on this new look for McDonald's...Blab On. Leave a comment.

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