Mickey D's McMakeover

The heavy plastic look is history. A clean, simple design is on the way in.





By Pallavi Gogoi, with Michael Arndt in Chicago and Abed Moiduddin in Oak Brook

A comfortable armchair. Cool hanging lights. Funky graphics and photos on the walls. Wi-Fi access. Premium coffee. Isn't Starbucks great? Except...this is McDonald's. McDonald's (MCD)? That's right. After 30 years without a major design overhaul, the 51-year-old fast-food giant is adopting a hip new look. The world's largest hamburger chain is redesigning its 30,000 eateries around the globe in a 21st century makeover of unprecedented scale.

The redesign is risky and has many franchisees up in arms over the high costs of a makeover. But company officials believe the overhaul is needed. McDonald's, whose restaurants are visited by more than 40 million people every day, has moved aggressively over the past three years to revamp its menu and attract a new breed of customer. It has added healthier items like premium salads targeted at women, and apple slices and skim milk for children. But as more upscale items like Asian chicken salad show up on its menu, the chain's typical starkly lit, plastic-heavy look is at odds with the contemporary, welcoming image the company wants to present. "McDonald's promises to be a 'forever young' brand," says John Miologos, vice-president of worldwide architecture, design, and construction at McDonald's Corp. "We have to deliver on that promise." The last major change at McDonald's restaurants was the introduction of play places for children in the early 1980s.

NEW COLORS
What will the new McDonald's look like? "Think iPod: clean lines, simplicity," says Miologos. The signature mansard roof? History. "The big red roof looks too dated today," says John Bricker, creative director at design firm Gensler's brand-strategy arm, Studio 585. It's being replaced by a flat roof topped by a newly designed, contemporary, golden sloping curve. Ronald McDonald appears safe: The mascot was given a leaner, sportier look just last year. And the iconic twin golden arches will still play a big role in the branding.

After conducting a global contest among design firms, the burger giant chose New York-based Lippincott Mercer in the summer of 2004. Peter Dixon, the design firm's creative director, spent 2005 with McDonald's internal architecture and design team testing and prototyping the new look, which is being officially rolled out this year. Lippincott Mercer, which until it signed McDonald's had few clients in the restaurant business, has made a name for itself working with companies going through a shift in brand identity and image. In 2002, for example, it helped redesign Nissan Motor Co. (NSANY) dealerships to reflect the company's launch of several new upscale cars. Within a year, the redesigned dealerships saw an average of 57% sales growth, vs. 33% overall.

The traditional McDonald's yellow and red colors will remain, but the red will be muted to terra cotta and olive and sage green will be added to the mix. To warm up its look, the restaurants will have less plastic and more brick and wood, with modern hanging lights to produce a softer glow. Contemporary art or framed photographs will hang on the walls. Bob Dixon, a private school fund-raiser in Chicago, says of an Oak Brook (Ill.) restaurant that sports the new design: "It's bright, it's lively, it's clean. It stunned me how beautiful it was."

The dining area will be separated into three sections with distinct personalities. The "linger" zone will offer comfortable armchairs, sofas, and Wi-Fi connections. "The focus is on young adults who want to socialize, hang out, and linger," says Dixon. Brand consultant Robert Passikoff, president of Brand Keys, a brand consulting firm, says that Starbucks has raised the bar: "A level has been set by Starbucks, which offers the experience of relaxed chairs and a clean environment where people feel comfortable hanging out even if it's just over a cup of coffee."

The "grab and go" zone will feature tall counters with bar stools for customers who eat alone; plasma TVs will offer them news and weather reports. And in the "flexible" zone, families will have booths featuring fabric cushions with colorful patterns and flexible seating. The new design allows different music to be targeted to each zone.