Posted on 05/11/2006 5:38:23 AM PDT by snowrip
Mickey D's McMakeover By Pallavi Gogoi, with Michael Arndt in Chicago and Abed Moiduddin in Oak Brook
A Bold New Look
A comfortable armchair. Cool hanging lights. Funky graphics and photos on the walls. Wi-Fi access. Premium coffee. Isn't Starbucks great? Except...this is McDonald's. McDonald's (MCD)? That's right. After 30 years without a major design overhaul, the 51-year-old fast-food giant is adopting a hip new look. The world's largest hamburger chain is redesigning its 30,000 eateries around the globe in a 21st century makeover of unprecedented scale.
The redesign is risky and has many franchisees up in arms over the high costs of a makeover. But company officials believe the overhaul is needed. McDonald's, whose restaurants are visited by more than 40 million people every day, has moved aggressively over the past three years to revamp its menu and attract a new breed of customer. It has added healthier items like premium salads targeted at women, and apple slices and skim milk for children. But as more upscale items like Asian chicken salad show up on its menu, the chain's typical starkly lit, plastic-heavy look is at odds with the contemporary, welcoming image the company wants to present. "McDonald's promises to be a 'forever young' brand," says John Miologos, vice-president of worldwide architecture, design, and construction at McDonald's Corp. "We have to deliver on that promise." The last major change at McDonald's restaurants was the introduction of play places for children in the early 1980s.
NEW COLORS What will the new McDonald's look like? "Think iPod: clean lines, simplicity," says Miologos. The signature mansard roof? History. "The big red roof looks too dated today," says John Bricker, creative director at design firm Gensler's brand-strategy arm, Studio 585. It's being replaced by a flat roof topped by a newly designed, contemporary, golden sloping curve. Ronald McDonald appears safe: The mascot was given a leaner, sportier look just last year. And the iconic twin golden arches will still play a big role in the branding.
After conducting a global contest among design firms, the burger giant chose New York-based Lippincott Mercer in the summer of 2004. Peter Dixon, the design firm's creative director, spent 2005 with McDonald's internal architecture and design team testing and prototyping the new look, which is being officially rolled out this year. Lippincott Mercer, which until it signed McDonald's had few clients in the restaurant business, has made a name for itself working with companies going through a shift in brand identity and image. In 2002, for example, it helped redesign Nissan Motor Co. (NSANY) dealerships to reflect the company's launch of several new upscale cars. Within a year, the redesigned dealerships saw an average of 57% sales growth, vs. 33% overall.
The traditional McDonald's yellow and red colors will remain, but the red will be muted to terra cotta and olive and sage green will be added to the mix. To warm up its look, the restaurants will have less plastic and more brick and wood, with modern hanging lights to produce a softer glow. Contemporary art or framed photographs will hang on the walls. Bob Dixon, a private school fund-raiser in Chicago, says of an Oak Brook (Ill.) restaurant that sports the new design: "It's bright, it's lively, it's clean. It stunned me how beautiful it was."
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.
From BusinessWeek
RESISTANCE 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 2002, when McDonald's introduced premium salads, it did ask a number of franchisees to spruce up their dining rooms, but it wasn't a major redesign project. McDonald's says it worked collaboratively with franchisees to jointly develop a strategy for the current "re-imaging" of its restaurants.
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."
(you don't see playgrounds at Starbucks).But, oh my! that would rock.
Really! That Burger King gives me nightmares!
Why don't they just call it a quarter-pounder?
I prefer the Big Kahuna burger anyway. That's a tasty burger!
I absolutely cannot wait for this generation of architects to die off. They spend so much time copying each other's trendiness that every single building looks the same, and looks as if it was designed by a blind rodent.
Bring back the classics, please. Please?
I'm not sure I buy into these complaints by the franchise holders. McD's franchise rules say either the front (customer area) or the back (order taking/ prep area) needs to be remodeled every 5 years. That encourages the adopting of new equipment and regular remodeling prevents wear and tear that makes places look old and dirty. Anybody that did a remodel 4 years ago knows they're do for another one soon anyway.
Their secret sauce was the best.
Amazing, that by simply looking at that logo, a wave of found memories enveloped me.
Thanks Fester.
again.
Roll over in bed and there's The King.
New Coke
Here in L.A., when I want a burger (which is rare), I have amazing choices besides the ubiquitous chains: Carl's Jr., Tommy's, In-n-Out, Whataburger, Fatburger.
But every once in a while, I get a hankering, almost a craving, for a Big Mac or a Quarter Lber with Cheese. I don't know why, I didn't eat McDonalds when I grew up (we couldn't afford fast food), so it isn't some sort of childhood attachment.
They just taste good, in a strange way.
I'm in Memphis and till they get edible food, I'll never see any cosmetic changes.
fix the nasty food and the ugly people serving the food FIRST
yeah, I dont get the "PC" argument either...this is about McDonalds losing money
do they really want people (cough*teenagers*cough) there hanging out and chillen and driving away customers?? People who enjoy HD tvs and fireplaces arent gonna want to hang out with thug punks listening to their ipods and throwing french fries at each other. Seems like a disaster in the making
Hehe. It's probably up to the franchisee to decide the manner and degree of improvements. I don't think they'll really try this in Harlem. My local store tore the whole place down and started from scratch - all except the "play place." As first I was astonished, thinking they either went out of business or were shut down for health violations.
Gotta admit, ''Royale au fromage'' sounds better (marginally) than ''113-grammer''.
I never get a hankerin' for Mickey D's.
We're more limited: Wendy's, BK and Hardees seem to be the choices. Hardees is the best, but hardest to find. The other two are roughly tied.
When I REALLY want a burger, though, I grill it myself. I make GREAT burgers.
*shudder* There's been no worse advertising campaign in history than "The King". Absolutely repulsive ads.
It would be bad enough to find him thirty flights up on the high steel, but when he shows up in your bed? What the hell is with that?
Did you see the "all natural chicken" commericals for Arby's? OMG, I can't eat there anymore, and now any mention of Chicken links in my brain to an image of Joan Rivers at 190 with ligaments that stick out like cables on a suspension bridge. What brain-dead moron put THAT ad campaign into motion?
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