Mcdonald’s, the iconic fast food, hamburger dealing, obese children-producing restaurant is undergoing a change. Most people regard this fast food chain as a place to have a quick snack or meal, or a place to ensure their children are happy. The bright yellow environment in the restaurants and their mascot, Ronald Mcdonald, ensure that children and their families are welcome. The company is very well known for this and they have revolved their branding and advertising around it. Recently, however, they are aiming to change this well know children’s friendly brand to a more sophisitcated brand to appeal to the older generations too.
Recently, hundreds of the fast food chain’s restaurants are undergoing a dramatic renovation. New wallpapers, new tables, new fixtures, flat screen tvs, wifi, and new colours. In addition to the new upgrades, additions to the classic menu have been addressed. The new healthier selections are aiming to capture the trend of healthy lifestyles.
McDonalds has invested a large amount into this new upgrade and performed extensive market research. They are changing their segmentation, targeting, and position. However, such branding changes bears a significant cost both for reconstruction and temporary loss of sales. The renovations are estimated at a cost of $300,000 per outlet, which is roughly equivalent to the store’s annual revenue. Many franchisees have opposed this change understandably as it bears a hugh expense. In order to move and capture the new market, drastic changes may be the key and the initial renovations must be implemented to see any future change. The ultimate question is whether it will actually succeed and ensure long term profitability.
http://www.theglobeandmail.com/life/style/lovin-it-mcdonalds-gets-a-makeover/article1489715/
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