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McDonald’s Europe<br />

Our Financials<br />

Focusing on our customers and employees<br />

continues to deliver strong results.<br />

A Quick Snapshot<br />

To know our numbers, it’s important to know who we are:<br />

· Europe is the second largest geography for McDonald’s<br />

· There are more than 6,600 restaurants in Europe<br />

· More than 4,600 restaurants in Europe are franchised<br />

· We serve over 12 million customers a day<br />

· We employ around 335,000 people<br />

· We have restaurants in 39 different European countries<br />

· Our biggest markets are Germany, the UK and France<br />

220<br />

9.5<br />

1,192<br />

41.4<br />

59<br />

3.4<br />

78<br />

19.2<br />

164<br />

14.6<br />

146<br />

50.7<br />

1,141<br />

17.7<br />

4<br />

0<br />

397<br />

21.4<br />

127<br />

19.7<br />

23<br />

0<br />

15<br />

86.7<br />

Percentage<br />

17<br />

47.1<br />

1,349<br />

19.9<br />

16<br />

100<br />

83<br />

8.4<br />

100<br />

48<br />

78<br />

41<br />

383<br />

19.6<br />

15<br />

0<br />

68<br />

16.2<br />

231<br />

24.7<br />

4<br />

0<br />

225<br />

64<br />

39<br />

59<br />

82<br />

20.7<br />

61<br />

91.8<br />

7<br />

0<br />

28<br />

0<br />

7<br />

0<br />

4<br />

0<br />

The first European<br />

restaurant opened<br />

in the Netherlands<br />

in 1971.<br />

<strong>fast</strong><br />

<strong>fact</strong><br />

7<br />

0<br />

67<br />

100<br />

3<br />

0<br />

6<br />

100<br />

5<br />

0<br />

226<br />

100


McDonald’s Europe<br />

Our Food<br />

We are dedicated to offering our customers<br />

a wide variety of menu options that taste<br />

good and which complement a balanced,<br />

active lifestyle.<br />

Empowering Our Customers<br />

Our guests want to make their own choices, so our goal is to offer<br />

options for everyone – no matter their circumstance. As a result, we<br />

created our Balanced Lifestyles framework encompassing three distinct<br />

areas: Menu Choice, Consumer Information and Physical Activity.<br />

Offering More Menu Choices<br />

By offering our customers a wide range of menu and nutrition options, it’s<br />

easier for them to make responsible choices for themselves and their family.<br />

In response to<br />

our European<br />

customers’ changing<br />

lifestyles and <strong>fast</strong> eating habits, we<br />

introduced Salads <strong>fact</strong><br />

Plus in 2004 to<br />

provide lighter<br />

options and more<br />

variety.<br />

Our Balanced<br />

Lifestyles<br />

framework mirrors <strong>fast</strong> the World Health<br />

Organisation’s <strong>fact</strong> Global Strategy<br />

on Diet, Physical<br />

Activity and Health.


Delivering the Information<br />

Since 1984, we’ve provided nutritional information in our European<br />

restaurants on both leaflets and on the back of trayliners. But we know<br />

we can do more to help our customers choose a balanced diet.<br />

So after extensive research, in 2006 we launched the Nutrition Information<br />

Initiative (NII) based on Guideline Daily Amounts (GDAs). The system<br />

focuses on five elements our customers said are most important:<br />

calories, protein, fat, carbohydrates and salt.<br />

We use icon-based graphics on packaging, in-store materials, making<br />

nutrition information fun, non-language dependent and intuitive. We have<br />

also created a consumer website which provides additional information<br />

on menu combinations, nutrition values and GDAs.<br />

Promoting Physical Activity<br />

A balanced, healthy lifestyle involves more than what you eat. It’s finding<br />

the right balance between calories you consume and physical activity.<br />

We encourage customers to build more movement in their lives through<br />

both large-scale programmes and grassroots endeavours where we<br />

collaborate with local sports and governments to support physical<br />

activity – especially among children.<br />

In today’s world, it’s difficult to know how to eat and live well.<br />

Our Balanced Lifestyles framework is our way of providing our<br />

customers with the information they need to make the right<br />

decisions that fit their way of life.<br />

Tested in over<br />

100 countries<br />

worldwide,<br />

the Nutrition <strong>fast</strong> Information<br />

Initiative features <strong>fact</strong> icons – making the<br />

information nonlanguage<br />

dependent<br />

and intuitive.<br />

Since 2002, our<br />

sponsorship of the<br />

Football Association’s<br />

Coaching Programme<br />

in the UK has created <strong>fast</strong> over 10,000 new<br />

coaches giving more <strong>fact</strong><br />

than 500,000<br />

children access to<br />

1.6 million hours of<br />

qualified coaching.<br />

Our “Go Active”<br />

programme in<br />

Belgium, launched<br />

in 2006 and developed<br />

with teachers,<br />

physical education <strong>fast</strong> specialists and the<br />

Belgian Athletic <strong>fact</strong> Federation, has<br />

encouraged more than<br />

180,000 children at<br />

over 950 schools to<br />

exercise while they<br />

play and learn.


McDonald’s Europe<br />

Our People<br />

We are committed to providing a workplace<br />

where our employees feel valued.<br />

Creating Job Satis<strong>fact</strong>ion<br />

We know a happy employee better serves the customer. So we created<br />

a people plan with one very important objective: for our well-trained<br />

crew to provide our customers with <strong>fast</strong> and friendly service.<br />

To reach this goal and ensure employee satis<strong>fact</strong>ion, we established<br />

five People Principles with set standards related to hiring, pay, benefits,<br />

development and communication. We then monitor these values through<br />

our annual “People Promise” opinion survey.<br />

And to provide further opportunities, in September 2006 we launched<br />

McPassport – the most significant private sector initiative to promote<br />

employee mobility. We designed the programme to help employees<br />

move and work throughout the European union.<br />

Over 225,000<br />

employees from 27<br />

European countries<br />

are eligible for<br />

McPassport.<br />

<strong>fast</strong><br />

<strong>fact</strong><br />

We employ around<br />

285,000 people in <strong>fast</strong> Europe, with over<br />

98% of them <strong>fact</strong> working in<br />

restaurants.<br />

We’re one of the<br />

biggest private <strong>fast</strong> sector employers<br />

of under 24 year-<br />

<strong>fact</strong> olds in Europe.


Delivering Attractive Pay and Rewards<br />

We offer competitive salaries and benefits to those with similar<br />

positions within our industry. To help us continue doing so, we review<br />

benchmarking and regional salary surveys. And, after training, these<br />

pay and rewards can rise significantly.<br />

Providing Job Skills for Life<br />

We help our employees to reach their fullest potential by giving them<br />

the training they need to do their job.<br />

In addition, we give training in other important areas such as:<br />

· Teamwork<br />

· Food Hygiene<br />

· Communication<br />

· Time Management.<br />

Employees can apply these skills throughout their career – whether<br />

or not they continue to work at McDonald’s as managers, operations<br />

consultants or within the Franchise system as business owners.<br />

We recognise that part of our future success depends on our<br />

employees enjoying what they do. We take satis<strong>fact</strong>ion in knowing<br />

we offer real opportunities for personal growth and development<br />

for all employees – full or part-time.<br />

In the UK, we<br />

average 24 training <strong>fast</strong> hours per crew<br />

member per<br />

<strong>fact</strong> year and 82 for<br />

managers.<br />

80% of crew and<br />

80% of managers<br />

in Europe felt that <strong>fast</strong> the restaurant<br />

they worked for <strong>fact</strong><br />

developed and<br />

promoted employees<br />

(Source: 2007<br />

Commitment<br />

Index).<br />

We develop<br />

core training<br />

programmes that <strong>fast</strong> countries enhance<br />

and adapt to make<br />

<strong>fact</strong> them relevant to<br />

local languages,<br />

cultures and issues.


McDonald’s Europe<br />

Our Strategies<br />

We are focused on three action plans that<br />

address our customers’ expectations.<br />

1. Upgrading the Customer & Employee Experience<br />

Many people base their opinions on their own personal experiences.<br />

To ensure their interaction with our brand is always a good one, we:<br />

· Offer high quality, relevant food choices<br />

· Provide friendly service<br />

· Improve the ambience and decor<br />

· Deliver value<br />

To help us do this, we set clear standards and implement best practices<br />

that strengthen our Supply Chain and Quality Assurance processes. We<br />

also enhance our training capabilities so our employees can do the best<br />

job possible. In addition, we continue to re-model restaurants and further<br />

develop a four-tiered menu that offers something for everyone.<br />

2. Building Brand Transparency<br />

Both our customers and employees want to see how we do business.<br />

So we demonstrate our social responsibility by enhancing employment<br />

practices and improving employer image. In addition, we’ve created<br />

many programmes that help support our mission to be open, honest<br />

and accessible:<br />

· Nutritional labelling gives customers the information they need to make<br />

the right choices.<br />

· Quality Scouts allows the public to review the brand and comment<br />

publicly.<br />

· Open Doors invites people to see what we’re all about.<br />

And since 1999, we have developed our own Environmental<br />

Management System (EMS). EMS not only aims to improve<br />

environmental impacts but also ensures a level of performance in<br />

all European countries while encouraging them to continually raise<br />

standards. Representatives from each country network and meet<br />

regularly to exchange ideas and news, and to share best practices<br />

between them.<br />

Our alliance with<br />

Greenpeace brought<br />

forth a two-year <strong>fast</strong> moratorium on<br />

buying soya from<br />

<strong>fact</strong><br />

newly deforested<br />

land in the Amazon.<br />

To date, 50% of our<br />

restaurants within <strong>fast</strong> Europe have been<br />

re-modelled and free <strong>fact</strong> Wif-Fi connections are<br />

available in more than<br />

4,000 restaurants in<br />

Europe.<br />

In 2006, we were<br />

the first quick<br />

service company to <strong>fast</strong> make a pan-European<br />

commitment<br />

<strong>fact</strong> to reduce the levels<br />

of trans-fats in our<br />

cooking oil to 2%.<br />

When launched in<br />

2005, we were the<br />

first Quick Service <strong>fast</strong> Restaurant (QSR)<br />

to use the new <strong>fact</strong> nutrition reference<br />

values – the Guideline<br />

Daily Amounts<br />

(GDAs).


3. Preserving Local Relevance<br />

We may be a global brand and icon, but retaining the characteristics and values<br />

within each of our 40 individual countries is essential. We support this local<br />

flexibility by:<br />

· Engaging franchisees to connect with their communities<br />

· Establishing the right tone of voice in our consumer communication<br />

· Introducing local food promotions<br />

These strategies help us to deliver relevant products and services to both<br />

our customers and employees. They are at the heart of everything we do.<br />

Introduced in 2001<br />

and inspired by<br />

traditional Greek<br />

<strong>fast</strong> cuisine, Chef Ilias<br />

Mamalakis created<br />

the Greek Mac – a <strong>fact</strong><br />

burger with yoghurt<br />

sauce, tomato slices,<br />

lettuce and onion<br />

wrapped in a pita.


McDonald’s Europe<br />

Our Quality<br />

We deliver food excellence by setting clear<br />

standards and implementing best practices.<br />

Establishing Standards<br />

Not only do we work hard to keep our food quality high, we also are<br />

constantly improving it by establishing standards for our suppliers to<br />

uphold. So in 2001 we introduced McDonald’s Agricultural Assurance<br />

Programme (MAAP).<br />

MAAP is based on seven policies that determine the present and future<br />

development of our supply chain:<br />

· Environment<br />

· Agricultural Practices<br />

· Animal Welfare<br />

· Animal Nutrition<br />

· Animal Medication<br />

· Transparency<br />

· Genetics<br />

We then translate these policies into 15 extremely detailed standards,<br />

each with many sections, for all agricultural products.<br />

And to provide us further guidance on animal welfare practices, we<br />

established the industry’s first independent Animal Welfare Council in 2000.<br />

MAAP is a pan-<br />

European, internal<br />

standards and<br />

quality system <strong>fast</strong> for agricultural<br />

products designed <strong>fact</strong> to provide us with<br />

assurance on food<br />

quality, safety and<br />

sustainability.<br />

The MAAP beef<br />

cattle standard<br />

contains 151<br />

components.<br />

<strong>fast</strong><br />

<strong>fact</strong>


Monitoring Every Stage<br />

Our food safety measures are another way for us to ensure our<br />

customers receive the very best. That’s why we created Hazard Analysis<br />

Critical Control Points (HACCP) to observe each phase of our food<br />

operations from raw material production to across-the-counter activities.<br />

HACCP allows us to identify the critical food safety stages in processing.<br />

Once these steps are identified, we establish controls for each activity.<br />

Critical Food Safety Stage:<br />

Cooking of Hamburger Patties<br />

Established Control: Patties must<br />

reach minimum temperature of 69<br />

degrees after cooking<br />

69º<br />

In addition to requiring our franchisees to follow HACCP, both our<br />

direct and indirect suppliers have HACCP systems in place.<br />

We initiate programmes that deliver high quality and safe food<br />

items. From farm to restaurant, the creation and implementation<br />

of these practices make certain our customers receive the best<br />

product possible – one menu item at a time.<br />

Implemented with<br />

our suppliers in the<br />

1980s, rolled out<br />

throughout our <strong>fast</strong> restaurants in the<br />

1990s, and validated <strong>fact</strong><br />

by Lloyds Register<br />

in 2003, HACCP is<br />

recognized worldwide<br />

as the best current<br />

approach to food<br />

safety.


Ronald McDonald<br />

House Charities<br />

Ronald McDonald House Charities (RMHC)<br />

supports local programmes that help<br />

children around the world.<br />

Making a Difference<br />

RMHC is a public charity with a mission to create, find and support<br />

activities that directly improve the health and well-being of children. It is<br />

their goal to help as many children as possible while giving back to the<br />

community.<br />

There are three core programmes within RMHC:<br />

· Ronald McDonald House Programme offers a “home away from home”<br />

for families with seriously ill children at nearby hospitals.<br />

· Ronald McDonald Family Room Programme provides a place for<br />

families to relax in the hospital.<br />

· Ronald McDonald Care Mobile Programme brings medical, dental<br />

and health education services directly to children.<br />

Franchisees, McDonald’s employees, suppliers as well as many<br />

individuals and other corporations support these programmes through<br />

direct contributions, fundraisers and active involvement in their local<br />

Chapters.<br />

RMHC has a global<br />

network of Chapters<br />

in 50 countries and<br />

regions.<br />

<strong>fast</strong><br />

<strong>fact</strong>


Countries with RMHC Chapters<br />

23<br />

Ronald McDonald Family Rooms<br />

44<br />

Since 2002, McDonald’s restaurants in over 100 countries have<br />

supported RMHC by taking part in World Children’s Day. This<br />

annual restaurant event encourages employees, franchisees<br />

and suppliers to raise money for children’s causes worldwide.<br />

Supporting RMHC and World Children’s Day is a way for<br />

McDonald’s not only to be involved in the community but also<br />

to play an important role in the development of young people.<br />

Ronald McDonald Houses<br />

72<br />

Ronald McDonald Care Mobile<br />

01<br />

Proceeds from<br />

the fundraising<br />

efforts of World<br />

Children’s Day in<br />

Europe directly <strong>fast</strong> benefit RMHC<br />

Chapters, children’s <strong>fact</strong> hospitals, schools,<br />

orphanages and<br />

other non-profit<br />

organizations on<br />

a local level.


McDonald’s Europe<br />

Our Restaurants<br />

We are upgrading the customer experience<br />

by enhancing restaurant ambience and décor.<br />

Creating Visual Sensation<br />

We want our customers to feel a sense of escape, relaxation and<br />

pleasure while visiting McDonald’s. As a result, we’re re-modelling<br />

our restaurants – focusing on the use of original forms and<br />

materials to create quick service restaurants that are both<br />

innovative and inviting.<br />

Led by our European Restaurant Development & Design studio<br />

(ERDDS), we have eight décor designs ranging from high-end<br />

themes to more affordable options that are in harmony with local<br />

requirements while best serving the customer’s needs.


Combined with geographic, demographic and economic <strong>fact</strong>ors,<br />

along with eight design attributes that help the selection process,<br />

these nine designs provide our system the flexibility it needs to best<br />

match customer expectations with restaurant décor.<br />

Our restaurants are often our customers’ first encounter with<br />

our brand. As such, we want to ensure their experience is always<br />

a good one. The team behind ERDDS, including engineers,<br />

economists, accountants, purchasers and designers, works<br />

together to create inspirational designs that are complimentary<br />

to our customers’ lifestyles, more original and quite simply,<br />

more McDonald’s.

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