BOSTON -- The next generation of McDonald's is making its way into New England, and the restaurants are equipped with leather chairs, plasma TVs and wireless Internet access, reported The Boston Globe.
By yearend, McDonald's will have 10 of the stores in Massachusetts, and expects 20 to 30 more in New England annually. The "forever young" makeovers, as the company calls them, are part of the chain's strategy to reinvent itself by offering healthier food, premium coffee and more payment options with credit and debit cards. All 13,000 U.S. McDonald's restaurants [image-nocss] will eventually get the makeover, half of them getting some upgrades by yearend, said the report.
The overhauls are a key part of McDonald's effort to better compete with restaurants like Panera Bread that feature quick meals in a sophisticated setting, and to win back customers, especially young adults and families, analysts said. McDonald's new look, which includes recessed lighting and classical music, is also an attempt to boost sales by attracting a new type of customers who linger throughout the day in a cozy environment, like Starbucks, the report said.
At the new unit in North Weymouth, Mass., there are three distinct seating sections. There's the "fast" zone, which features tall counters with stools seats for customers who want to eat alone. The "social" section allows families and friends to gather around big tables in leather booths. And the "linger" zone offers a lounge area with sofas and armchairs.
"There's a growing trend where guests are looking for the total packageconvenience, price, quality and comfortable environment," Stuart Morris, president of QSR Consulting Group, told the newspaper. "McDonald's certainly wants to retain their core customers, but recognizes future growth in the ability to attract guests who normally visit Starbucks, Applebee's and Chipotle."
The 51-year-old fast-food giant hasn't had a major facelift in at least three decades, said the report, and the transformation isn't cheap. Franchisees can pay up to $400,000 to renovate and more than $1 million to tear down the iconic red mansard roof structure and replace it with a sleek brick and stucco building, it said.
Not all McDonald's operators back the redesign, questioning whether the extensive interior renovations are worth the cost given that the average restaurant makes 65% of its revenue from drive-through sales, according to the report, citing Richard Adams, a former McDonald's executive who now acts as a consultant for franchisees.
This year, a group of North Carolina franchisees sent a letter to management opposing the makeovers. Meanwhile, analysts said McDonald's upscale model could risk alienating core customers: kids and families. Some of the new "forever young" restaurants have reopened without a play areaa move that McDonald's says addresseschanging demographicsin certain communities.
Despite these concerns, McDonald's, which has posted 41 consecutive months of sales growth, says it stands by its redesign. "We're happy with what we're seeing with the new buildings. We're seeing sales and guest counts go up wherever we've made the investment," John Lambrechts, general manager and vice president of McDonald's Boston region, told the paper. "This is in the best interest of the brand. Most of our franchisees would do this without any kind of threat of not being relicensed."
Peter Napoli, who operates about 20 McDonald's in New England, said he has seen sales increase nearly 50% after rebuilding his Leominster restaurant and reopening last month. He doesn't expect to sustain that level of growth, but he hopes to see a significant boost. As part of the makeover, Napoli installed two side-by-side drive-thru lanes and upgraded employees uniforms from polo shirts to crisp button-downs. "We have to provide our customers more of what they need and want. And that's a more upscale look inside and out," Napoli told the Globe. "Change is important to move our business forward."
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