Restructuring / Turnaround Strategies Case Study

McDonald's Redesigning of Outlets: Change for the Better?

Abstract:

McDonald’s, the world’s largest hamburger chain, was redesigning its stores worldwide. It was the first time in 30 years that McDonald’s had undertaken a major revamp of its store. This initiative was in continuation of the “Plan to Win” strategy, which it undertook in 2003, to improve all aspects of customer experience. According to this plan, McDonald’s had revamped its menu, advertising and promotions. Now McDonald’s wanted to refurbish its stores to enhance customer experience. McDonald’s felt that customer tastes and preferences had changed over the years and in order to cater to their needs, the store should upgrade its facilities and present a more trendy and modern look.

McDonald’s was however facing problems in implementing this plan. The franchisees were reluctant to invest in the makeover. There was also the fear of the brand losing its nostalgia. The case facilitates discussion on issues related to brand management. It also provides scope for discussion on chain store and franchisee management.

Pedagogical Objectives:

• Is the redesigning of McDonald’s stores a right strategy?
• How would McDonald’s convince the franchisees to adopt the store revamp?
• Will the new design of stores affect the McDonald’s brand.

Keywords : McDonald's; Redesign; Retail Chain; Fast food stores Plan to Win; Repositioning; Franchise; Restructuring / Turnaround Strategies Case Study; Branding Makeover; Brand attributes; Target customer Retailing; Brand Equity; Store Revamping; Strategy