McDonald’s is taking resources from its expansion programme to fund a redesigning of its restaurants. The company needs to expand its market appeal to win back old fans and welcome new consumers. McDonald’s reputation in the UK has slipped recently and a lot of effort will be required to turn things around.
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Confirming speculation that it has reached market saturation in the UK, McDonald’s is redirecting money from its expansion programme into redesigning the interiors of its restaurants. By doing so, McDonald’s is hoping to broaden its appeal and fight the loss of custom that caused it to lose money for the first time since 1965.
The redesigned interiors are expected to include new features such as plasma TV screens, softer lighting, comfortable areas, artwork and banners of ‘local scenes’. This is a clear change from the traditional McDonalds outlet, with its emphasis on speed and cramming the maximum number of diners into the available space. These new designs are intended to appeal to different types of consumers – for example, the TV screens will display child-friendly cartoons during the middle of the day but news first thing in the morning.
This is not the first time that McDonald’s has revised its appearance and offerings to appeal to reluctant consumers. In France, the company massively re-adjusted its store design and marketing to appeal to French consumers who wanted to linger longer over dinner, eat traditional food and not feel as if they were encouraging “US cultural imperialism”. In Australia and New Zealand, McCafes offer cakes and fresh coffee in a more relaxed environment, albeit as a section of the restaurant.
That McDonald’s feels the need to rebrand its stores is an admission that it has lost touch with its customers. The tastes and demands of fastfood consumers have moved on, leaving McDonald’s looking out of touch. This, coupled with scandals such as the use of beef tallow to cook fries in the US, has seen McDonald’s lose popularity with consumers. Changing this perception will require more than just a fresh coat of paint.
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