The group has been battling with new entrants to the fast food market providing healthier options such as salad and sushi, as well as the improved menus available in gastro-pubs. As a result, the company's share of the UK fast food market fell from 20.8% in 2000 to 16.6% in 2004.
In a battle to get the company back on track, it is looking to increase the number of franchisees it has running restaurants from the current total of under 40% of the UK market to over 50%.
The group has been battling with new entrants to the fast food market providing
healthier options such as salad and sushi. As a result, the company’s share of
the UK fast food market fell from 20.8% in 2000 to 16.6% in 2004
Steve Easterbrook, UK chief executive of McDonald's, said the firm would undertake a joint venture of 10-15 restaurants with combined sales of £15-20m being run on a 50:50 basis with franchisees, who would be likely to run two restaurants each.
Easterbrook claims restaurants run by franchisees generally perform better than centrally managed stores as the make the most of the entrepreneurial nature of the individual concerned, but another attractive element is the fact that restaurants that perform poorer than expected do not directly affect company profits.
The company is currently beginning renovations to its UK stores to bring them more into lines with the more successful French equivalents by upgrading the dining areas with softer lighting and more modern furniture.
McDonald's has also branched out into more healthy areas in recent years such as fresh fruit, salad and toasted deli sandwiches but is struggling to shake off its image as a haven for junk food in an increasingly health conscious era.