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Branding July 17, 2008, 1:54PM EST

A Golden Recipe for McDonald's Europe

(page 2 of 2)

Indeed, the redesigns have proved so successful that McDonald's is considering importing them to the U.S. Hennequin is dispatching some of the Paris design team to Manhattan to scout out possible locations. If management in Oak Brook gives the go-ahead, a handful of outlets in the U.S. will probably be sporting a new look by the beginning of next year. Hennequin reckons that the new styles will translate well worldwide. "Design is the one thing that doesn't need to be locally relevant," Hennequin says.

But almost everything else does, according to Hennequin, who started his McCareer 21 years ago as a branch manager in Paris. His strategy has been to stay true to McDonald's American roots while making the products and entire experience more localized. That focus is evident in everything from management and staffing to menus. If you don't fancy a Big Mac in the branch at the Piazza di Spagna in Rome, you can order pasta freshly cooked to order. In France, McDonald's serves wine and runs an annual promotion called Le Saga du Fromage, where instead of the usual cheddar, burgers are topped with beloved French cheeses such as Reblochon. The concept has now been rolled out across Europe and Latin America.

Rolling Out McCafés

Meanwhile, McDonald's food innovation lab in Munich is continually tinkering with new recipes to test out in various European markets. There's porridge in Britain and a Mexican-themed week in Germany (apparently many Germans love spicy Mexican food) that includes offerings such as Los Scharfos, a fried cheese and jalapeño snack.

Another Continental-style offering helping to drive growth is the rapid rollout of McCafés. By the end of this year, there will be 940 across Europe. These coffee-bars-within-a-store offer cappuccino and espresso and a range of familiar pastries—from cornettos in Italy and flan in Spain to tortes in Germany and Austria. In Germany, where there will be 547 McCafés by the end of this year, McDonald's is already the country's leading coffee chain.

Local innovation extends beyond food, too. Hennequin wants to make greater use of technology to improve and speed up service. In France, for instance, McDonald's began using kiosks where customers can order and pay for their food, because a majority of transactions there are made using debit cards. Now the kiosks, which also have been introduced in Germany, are being tested in other European markets. "McDonald's is much more sophisticated today," Hennequin says. "It's one brand with many facets."

Capell is a senior writer in BusinessWeek's London bureau .

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