Sofas for McDonald's in bid to revive flagging sales

Sofas and modern lighting look set to be introduced to McDonald’s restaurants in a bid to revive flagging sales, it was reported today.

The plans for the biggest revamp of its restaurants in 20 years were revealed as Denis Hennequin, the European head of McDonald’s, said some of its restaurants were “tired”, despite a good performance on the continent and attempts to introduce new ranges.

It will refurbish 200 of its 1,200 outlets and refranchise up to 600 more, he told The Financial Times.

McDonald’s sales in some territories have fallen for the past five years amid consumer backlash against obesity, the down-at-heel image of many of its outlets and negative perceptions about the quality of fast food.

It has also been hit by lower footfall on the high street and an increase in competition from sandwich chains.

Sales in Europe, which make up around 35% of McDonald's global sales of $20.5bn (€17bn), grew 2.6% last year.

The plans include the introduction of more McCafes – the brand’s range of coffee shops – and a greater range of salads and sandwiches which are selling well in America.

The chain has already increased its range of healthy foods as concern grows over rising levels of obesity and diabetes, especially among children.

From May, customers buying a Big Mac or Filet-O-Fish will find the wrapper marked with salt, calorie, fat and carbohydrate content of what they are about to eat.

The refurbished restaurants, which McDonald’s will design more as retail outlets rather than just somewhere to eat cheaply, will be fitted with wireless internet access as well as comfortable seats and modern lighting as it tries to catch up with high street cafes such as Starbucks and Caffe Nero.

“If you walk down the streets of London, it’s probably the most competitive marketplace from that perspective,” Mr Hennequin told the Financial Times.

“Retail has changed. Consumers who were price-driven now want choice, comfort and ambience. We were hip 15 years ago but I think we lost that.”

He said the focus on reinvigorating McDonald’s could also lead to the company selling its 33% stake in sandwich chain Pret a Manger.