McDonald’s tastes victory in Europe

Even the old Ronald McDonald play areas have gotten a serious redesign. Relabeled as Ronald Gym Clubs, the focus is on getting kids fit. Set up in a separate building adjacent to the restaurant, these mini-gyms offer everything from stationary bicycles on which kids can race one another to climbing walls and basketball hoops. There are also similar but smaller versions called Gym and Fun Clubs found in many stores. "This is one best practice we will share with the rest of the world," Hennequin says.

Indeed, the redesigns have proved so successful that McDonald's is considering importing them to the U.S. Hennequin is dispatching some of the Paris design team to Manhattan to scout out possible locations. If management in Oak Brook gives the go-ahead, a handful of outlets in the U.S. will probably be sporting a new look by the beginning of next year. Hennequin reckons that the new styles will translate well worldwide. "Design is the one thing that doesn't need to be locally relevant," Hennequin says.

But almost everything else does, according to Hennequin, who started his McCareer 21 years ago as a branch manager in Paris. His strategy has been to stay true to McDonald's American roots while making the products and entire experience more localized. That focus is evident in everything from management and staffing to menus. If you don't fancy a Big Mac in the branch at the Piazza di Spagna in Rome, you can order pasta freshly cooked to order. In France, McDonald's serves wine and runs an annual promotion called Le Saga du Fromage, where instead of the usual cheddar, burgers are topped with beloved French cheeses such as Reblochon. The concept has now been rolled out across Europe and Latin America.

Meanwhile, McDonald's food innovation lab in Munich is continually tinkering with new recipes to test out in various European markets. There's porridge in Britain and a Mexican-themed week in Germany (apparently many Germans love spicy Mexican food) that includes offerings such as Los Scharfos, a fried cheese and jalapeño snack.

Another Continental-style offering helping to drive growth is the rapid rollout of McCafés. By the end of this year, there will be 940 across Europe. These coffee-bars-within-a-store offer cappuccino and espresso and a range of familiar pastries—from cornettos in Italy and flan in Spain to tortes in Germany and Austria. In Germany, where there will be 547 McCafés by the end of this year, McDonald's is already the country's leading coffee chain.

Local innovation extends beyond food, too. Hennequin wants to make greater use of technology to improve and speed up service. In France, for instance, McDonald's began using kiosks where customers can order and pay for their food, because a majority of transactions there are made using debit cards. Now the kiosks, which also have been introduced in Germany, are being tested in other European markets. "McDonald's is much more sophisticated today," Hennequin says. "It's one brand with many facets."

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