When I read the article in today's New York Times about McDonald's (NYSE: MCD) going upscale in Europe, I couldn't believe the pictures I was looking at: high-end furniture, creative light fixtures, modern art, and some dishes even include actual silverware and reusable plates! They have leather upholstery!
The chain will be spending over $800 million to remodel 1,280 European restaurants, hoping that a more posh look will attract a younger, hipper, more affluent crowd. McDonald's will also be offering healthier menu options and regional cuisine. You can even rent an iPod.
According to The Times, it's working: "In the first half of this year, combined sales at Europe's 6,400 restaurants rose 15 percent, to $4.1 billion, compared with a 6 percent increase in the United States, where McDonald's has 13,800 restaurants and sales totaled $3.9 billion."
McDonald's is also renovating its American restaurants, but not as extensively. Given that McDonald's is such a cultural icon here, I think a lot of people would laugh if it went too upscale -- but it could work in some upscale areas.
It all seems a bit booshie to me, but hey. Americans don't want leather upholstery and silverware. We just want food that can make us fat.
Cramer on BloggingStocks: Investors are rethinking their snap judgments 
Lions Gate Entertainment: Still waiting for cash flow
Before the bell: Stocks ready for a lower open after reaching 13-month highs
Reader Comments (Page 1 of 1)
8-25-2007 @ 5:39PM
al schrader said...
My relatives invented the hamburger in Hamburg, Germany, not McDonalds.
And I just invented a new hamburger...
the Strammer Max.
You can email me for more details if you would like
Chef Alfredk
alfredschrader@aol.com
8-25-2007 @ 8:57PM
Lee said...
No one in America cares about McDonald's being "upscale". I've been to Europe and it was all about high prices for service. I can service myself and I don't want to pay for something that I enjoy once and flush down the toilet. Food is a disposable item, so the least spent on it the better as long as it is healthy and cleanly prepared.
8-27-2007 @ 10:12AM
Jim said...
I'm not sure an upscale McDonalds will sell in America. Most people go there for quick and relatively inexpensive food, which, if not a great culinary achievement, is nonetheless consistent. On the other hand, who would have thought that Americans would have flocked to Starbucks to pay two or three times the usual price for a cup of coffee just because it has a fancy name?
8-29-2007 @ 12:21PM
Brian Patterson said...
My son got e coli 0157 H:7 from eating a McDonalds meal in August 2002. Both McDonalds and Zurich Ins. denied any liability yet the CDC National PulseNet database found isolated and random PFGE matches. My advice to anyone is to save their receipts and a uneaten portion of their meal for further testing, confirmation and proof of purchase.
9-13-2007 @ 3:58PM
Robert said...
But Starbucks actually HAS better coffee. It's won many double blind taste tests. I don't see a problem paying more for a better product.