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Renovating Ronald
Posted by Steve Portigal |  5 May 2006  |  Comments (2)

BusinessWeek writes about a just-launching redesign of McDonald's stores, trying to bring them up to date. This is sure to be a big design story in the business press, with lots of oohing and aahing about the furniture and so on, but the article points to some serious business challenges that the company faces here (and presumably anytime they want to do some sort of reinvention).

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.
Check out the new designs, which seem to bring McDonald's firmly into the 90s.

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Comments



trMay 8, 2006 10:11 AM

they have one of these 'new concept' mcdonald's here (columbus, oh), and from the few times i've been there, people really aren't utilizing the space as mcdonald's is intending. i understand how mcdonald's wants to lure the 'starbucks crowd' into their restaurants, but i think they are forgetting something. the reason people go to starbucks is because of the goods and services they offer, and the interior space design reflects that. drinking coffee is, in itself, a relaxing situation. it's a time to sit, and take it easy. it takes time to drink their beverages, starbucks knows this, and it's reflected in the fact that they have couches and tables where people can sit and drink their coffee over an extended period of time.

the goal of a fast food restaurant is 'fast food'. people go to fast food restaurants because in general, they have limited time to eat. putting nice chairs, nice lighting, and plasma TV's is not going to change the needs of the customer, which is to get their food fast, eat it, and go. i really don't think a customer will go in, think "wow, chairs and a tv...instead of getting my food and eating it quickly, i will linger around watch some tv and hang out." i really don't see an unfulfilled need with respect to the customer that mcdonald's is trying to meet with these changes. have customers actually stated they wished they had these things, or are these things what mcdonald's THINKS customers want?

then there is the whole issue of branding, with respect to the iconic structure of the exterior. these new restaurants...you will pass them by, unless you really look out for the golden arches on the sign. right after one of the mcdonald's around here was renovated (and i didn't know it was), i literally drove by 3 times, looking for the mcdonald's. i knew it was there, but i just didn't see it. for most of us, we see that mcdonald's roof, and right away, we know. that owner of the mcdonald's in NC has a good argument.

Steve PortigalMay 10, 2006 7:16 PM

tr - great comments, thanks

You might get a kick out of an intense and articulate rant about the new designs at
http://www.popmatters.com/pm/blogs/marginalutility_post/clean_and_simple/

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