McDonald's rebranding

[OmnivoreInk]

I've just been doing a bit of research into McDonalds - not for any business reasons - but over at Wikipedia it says that:

In 2006, McDonald's introduced its "Forever Young" brand by redesigning all of their restaurants, the first major redesign since the 1970s.[5][6]

The new design will include the traditional McDonald's yellow and red colors, but the red will be muted to terra cotta, the yellow will turn golden for a more "sunny" look, and olive and sage green will be added. To warm up their 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.

The exterior will have golden awnings and a "swish brow" instead of the traditional double-slanted mansard roof.

The new restaurants will feature areas:

The "linger" zone will offer armchairs, sofas, and Wi-Fi connections.
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.
The "flexible" zone will be targeted toward families and will have booths featuring fabric cushions with colorful patterns and flexible seating.
Different music will be targeted to each zone.


Now I admit I haven't been to a McDonalds in a long time - I usually go to KFC, but their are two photos of the "old" and the "new" McDonalds frontages, and I've gotta tell ya, the old, white-fronted building looks a lot nicer than the new, "terra cotta" fronted building.

I might nip into a local McDonalds tomorrow, see if I like the interior changes....

[Kevin Lee]

Hi Barbara,

Yeah, we were actually talking about this in an earlier post http://www.evancarmichael.com/Forums/vi ... lor+colour but would a new fancy decor really be enough to steal your business away from KFC?

On the rare occasion that I'll grab fast food, I'll base my choice on the place's menu as I could care less about the interior design (just so long as it's clean).

The new restaurants will feature areas:

The "linger" zone will offer armchairs, sofas, and Wi-Fi connections.
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.
The "flexible" zone will be targeted toward families and will have booths featuring fabric cushions with colorful patterns and flexible seating.
Different music will be targeted to each zone.

By adding these additional specialized areas, I think it's only going to hurt McDonald's overall customer experience. For instance, if I brought my laptop to get some work done in the "linger" zone, how could I possibly get any work done with a plasma tv booming or a family zone filled with kids or babies crying/shouting?

Moreover, I typically find that "linger" zones with sofas like at the Starbucks located in Chapters/Indigo stores just attract teens or college students who go there to make out, which is totally inappropriate.

[OmnivoreInk]

Yeah, we were actually talking about this in an earlier post http://www.evancarmichael.com/.....lor+colour but would a new fancy decor really be enough to steal your business away from KFC?

Oops... I missed that!

Yes, I too think they've not thought this through....

[Kevin Lee]

From what you've told me, it sounds like McDonald's is trying to become all things to all people. They want to attract the sophisticated tech savvy "Starbucks" crowd and also remain the family friendly destination.

In addition, McDonald's is now entering the premium coffee market to compete with Starbucks, 7-Eleven and Dunkin' Donuts
http://www.usatoday.com/money/industrie ... ffee_x.htm

Check out McDonald's new McCafe

http://www.enews20.com/news_McDonalds_I ... 04979.html

[litekepr]

Hi Barbara,

Yeah, we were actually talking about this in an earlier post http://www.evancarmichael.com/Forums/vi ... lor+colour but would a new fancy decor really be enough to steal your business away from KFC?

On the rare occasion that I'll grab fast food, I'll base my choice on the place's menu as I could care less about the interior design (just so long as it's clean).

The new restaurants will feature areas:

The "linger" zone will offer armchairs, sofas, and Wi-Fi connections.
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.
The "flexible" zone will be targeted toward families and will have booths featuring fabric cushions with colorful patterns and flexible seating.
Different music will be targeted to each zone.

By adding these additional specialized areas, I think it's only going to hurt McDonald's overall customer experience. For instance, if I brought my laptop to get some work done in the "linger" zone, how could I possibly get any work done with a plasma tv booming or a family zone filled with kids or babies crying/shouting?

Moreover, I typically find that "linger" zones with sofas like at the Starbucks located in Chapters/Indigo stores just attract teens or college students who go there to make out, which is totally inappropriate.

I have to ask - who really wants to linger at McDonalds???? The people I know that go to McDonalds go to get reasonable fast food. Its just not the setting for a Starbucks type of experience. Far too much hoopla to take the laptop and work or even surf the net.

So, are sales down at McDonalds, is that why they are making changes??

Shri

[Kevin Lee]

So, are sales down at McDonalds, is that why they are making changes??

Hi Shri,

I believe McDonald's is making changes for the same reason Tim Hortons decided to expand their product line (i.e. to soup and sandwiches when they were originally only a coffee and donut place) and why any business changes... which is to simply increase profit margins and meet consumer needs According to the articles I provided in earlier posts, coffee is a multi-billion dollar market and McD's wants a piece of the pie and they're large enough to muscle their way in and compete with Starbucks, Dunkin' Donuts, etc.

[Evan]

There was an interestingarticle in Time about McDonald's vs. Starbucks. McDonald's is moving towards $4.00 coffees while Starbucks is offering heated breakfast sandwiches and adding drive-thru windows to some of their locations.

"I'll have a grande, extra hot Big Mac with one pump ketchup."

[OmnivoreInk]

There was an interestingarticle in Time about McDonald's vs. Starbucks. McDonald's is moving towards $4.00 coffees while Starbucks is offering heated breakfast sandwiches and adding drive-thru windows to some of their locations.

"I'll have a grande, extra hot Big Mac with one pump ketchup."

If their commercials stop calling them "Mickey D's," I'll be happy. Not that I think I've seen a McDonalds commercial for a while...but I have in the past and using that name just irked me... It's McDonalds!

[litekepr]

So, are sales down at McDonalds, is that why they are making changes??

Hi Shri,

I believe McDonald's is making changes for the same reason Tim Hortons decided to expand their product line (i.e. to soup and sandwiches when they were originally only a coffee and donut place) and why any business changes... which is to simply increase profit margins and meet consumer needs According to the articles I provided in earlier posts, coffee is a multi-billion dollar market and McD's wants a piece of the pie and they're large enough to muscle their way in and compete with Starbucks, Dunkin' Donuts, etc.

I'm not a coffee person, but friends want to go to Starbucks, so something more would be nice. They are in a great position to expand their menu and that's really common. Wish 5 Guys would do something to expand their menu too McDonalds has a very definite niche and just changing the furniture isn't going to get me to go there -- there are still McDonalds --ughhhh

Shri

[mphcoach]

I once heard that McDonalds seats made your a**e start to sweat if you stayed more than 18 minutes.

How do you rebrand that?

Regards

Martin
"Coaching Businesses To Success"

[Kevin Lee]

I once heard that McDonalds seats made your a**e start to sweat if you stayed more than 18 minutes.

How do you rebrand that?

That could be true because their seats used to look and feel like hard plastic or ceramic But also keep in mind they wanted faster turnover, so it was probably their intent on making the seats as uncomfortable as possible.

Maybe they've now included cushioning to rebrand themselves?

[OmnivoreInk]

I love Kentucky Fried Chicken - those 11 herbs and spices. Yum yum.

Of course with the interference of the government and trans fat the chicken no longer tastes the same.... but I still like it...

But all that's beside the point of this post, which is that in 1991, apparently, Kentucky Fried Chicken changed its name to KFC, and now, 15 years later, they're changing it back, because last year was a down year for them.

I'm confused about this, because only yesterday my brother pointed out that the reason they'd changed the name in the first place was because the state of Kentucky was going to charge them a royalty fee for the use of the word Kentucky.

I've been unable to verify that... but if its true... perhaps they worked out some kind of deal...

I didnt' realize that the state of New York charges non-residents taxes, if they do a portion of their work in that state. For example, when a baseball, football or basketball team comes in to New York to play a team there - the visiting team's players have to pay taxes on the income they earn from that game - to New York.

As far as I'm concerned, that's outrageous!!!

[ChrisH]

I didnt' realize that the state of New York charges non-residents taxes, if they do a portion of their work in that state. For example, when a baseball, football or basketball team comes in to New York to play a team there - the visiting team's players have to pay taxes on the income they earn from that game - to New York.

As far as I'm concerned, that's outrageous!!!

When my account was set up to pay monthly state taxes, they asked if I was a company from out of the area that made money in the state of Virginia. That was one of the many options. Actually, I have business license in 3 different cities and 3 different counties because I do work in all those localities. Its a huge pain because at the end of the year, we have to break down every payment by the locality and then file all those different business licenses in the localities. And, of course every one has slightly different requirements about how much you can make before paying for a license or if they have a minimum or maximum amount of work that can be done before paying more. Then any amount that isn't accounted for with a different area is paid in the city where my office is located. What a pain, but they figure that if I make money in their locality, they deserve a piece of it.

Chris

[mphcoach]

One of the most confusing challenges to face visitors to the States, especially if you are moving around a bit, is how the purchase tax system works from State to State.

Almost completely in the UK, all taxes are included in any advertising. In the States, I just don't know if that is the case. Is there a simple rule and how does it work in Canada?

Regards

Martin
Coaching Businesses To Success

[RussellWebb]

One of the most confusing challenges to face visitors to the States, especially if you are moving around a bit, is how the purchase tax system works from State to State.

Almost completely in the UK, all taxes are included in any advertising. In the States, I just don't know if that is the case. Is there a simple rule and how does it work in Canada?

Regards

Martin
Coaching Businesses To Success

That's a loaded question Martin It gets more complicated by the day! Our tax code is so complex - I believe by design - that it's almost impossible to make sense of it all. But you asked...

Each state is supposed to have some autonomy to make decisions on taxation. Sales tax, income tax, and property tax vary from state to state. Either way, the states get their money. Then the Feds get their money from the states - and at times withhold monies / subsidies from the states if someones being naughty (ironically this includes the entire gov't body).

All I can say is... If you make a purchase in a state that isn't charging sales tax, then you can celebrate a little, but if you own a home there... they'll get you with the higher property tax. You see?

Just don't forget to tip the waiters / waitresses... it's pretty universal around here.

Before you know it McDonalds will be serving their improved menu via waiters soon enough.


Barbara said

I'm confused about this, because only yesterday my brother pointed out that the reason they'd changed the name in the first place was because the state of Kentucky was going to charge them a royalty fee for the use of the word Kentucky.

My understanding on this is that Kentucky FRIED Chicken wasn't going over too well with the 'healthy crowd' so they abbreviated to KFC - no verification from my end either.