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D 58008INTERNATIONAL TRADE JOURNALFOR THE HOTEL, RESTAURANTAND CATERING INDUSTRYEDITION 3/2009www.food-service-europe.comwww.cafe-future.netSpecial Features: <strong>Food</strong>service Market Germany, Pizza Market Turkey, McCafé in <strong>Europe</strong>


C ONTENTS4 Editorial6 Statistics<strong>Europe</strong> by Numbers8 Pan-<strong>Europe</strong>an SurveyTea-focused Concepts: How to AchieveGreater Popularity in <strong>the</strong> Away-fromhomeMarket20 Hot TrendCookbooks by Restaurants: SharingKnowledge – Gaining Confidencepage 8 ■ ■ ■Tea is generally speaking <strong>the</strong>preserve of individual conceptscatering <strong>for</strong> up-market tastes.However, to stand up to <strong>the</strong> omnipresentcompetitor, coffee, itis indispensible that <strong>the</strong> prepar -ation, quality and presentationare up to <strong>the</strong> mark.Market Analysis25 Germany: Top 100 RestaurantChains/Companies with a 4.2% Increasein Sales in 200828 InterviewAndrew Lynch, CEO of UK-based TravelConcession Operator SSP34 OperationsThe Why, When and How of an EffectiveInternal Server Sales ProgramMiddle East Section35 TurkeyChains Growing Strongly in <strong>the</strong> Country’sPizza Sector37 EgyptInternational Restaurants Group, Franchiseeof Casper & Gambini’s and wagamama– Major Learnings38 EgyptThe Challenge of Going Global: wagamama– <strong>the</strong> Franchisor’s View42 Events‘Green Nobel Prize’ Gala Event in AbuDhabi: Fusion Cuisine <strong>for</strong> 2,000■ ■ ■ page 28Andrew Lynch, CEO of SSP The <strong>Food</strong> Travel Experts,discusses <strong>the</strong> changing demands of <strong>the</strong> travellingpublic and <strong>the</strong> dynamics of matching <strong>the</strong> company’shuge portfolio of foodservice brands to <strong>the</strong> changingopportunities. Photo: Joanne Whitehallfront cover ■ ■ ■Ambitious and varied design marks <strong>the</strong> newgeneration of McDonald’s restaurants throughout<strong>Europe</strong>. Germany is <strong>the</strong> continent’s number oneMcCafé country – with close to 1,000 instorecoffeebars established to date.Photo: Thomas Fedra, Frankfurt44 QuickserviceMcDonald’s: Global Key Figures 2008McCafé in <strong>Europe</strong>46 Brand ManagementMcCafé: <strong>the</strong> 1,000th Shop-in-shop Unit in<strong>the</strong> <strong>Europe</strong>an Market Set to Open Soon51 DesignMcDonald’s’ New Cosiness: The McCaféAmbience, Designed by Philippe Avanzi52 FranchisingMcDonald’s Franchisee MichaelE. Heinritzi: McCafé Pioneerpage 46 ■ ■ ■In <strong>the</strong> near future McDonald’s is goingto celebrate <strong>the</strong> opening of its 1,000 thMcCafé in <strong>Europe</strong>. Offering coffeespecialties, sweet and savoury bakeryproducts in a modern but cosyambience, <strong>the</strong> module brings newcustomers through <strong>the</strong> fast-foodgiant’s doors.54 Bakery Fast <strong>Food</strong>German Bakers Boost Fast <strong>Food</strong> Sales byImplementing Drive-through Lanes56 Contributing Authors60 Fast CasualSpain’s Comess Group de Restauración:Going International with Ethnic-CuisineBrands62 SupplierTop Trend Products66 Show DatesMajor Trade Fairs and EventsFOODSERVICE EUROPE & MIDDLE EAST 3/09Verlagsgruppe Deutscher FachverlagMainzer Landstrasse 251 | 60326 Frankfurt/Main | GermanyPhone +49.69.7595-1512 | Fax +49.69.7595-1510info@food-service-europe.com<strong>Please</strong> see <strong>the</strong> attached inserts fromCambroMangelberger GmbHAICHINGER GmbH3


B RAND M ANAGEMENTconcept soon learnt what customers wantand how <strong>the</strong>y expect it to be served. Thenew module proved to be an instant hit inGermany w<strong>here</strong>, in <strong>the</strong> course of a remodellingprocess costing around €1 bn, over500 of <strong>the</strong> country’s 1,300 McDonald’srestaurants have now been equipped witha supplementary coffee counter.An enthusiastic ad<strong>here</strong>nt of <strong>the</strong> McCaféproject was and is Bane Knezevic who wasmade CEO and President of McDonald’sGermany in mid 2005. He underscoreshow important <strong>the</strong> support of <strong>the</strong> franchiseeshas been <strong>for</strong> <strong>the</strong> rapid expansionof McCafé: “I was really surprised howvery willing <strong>the</strong> franchisees in Germanywere to support <strong>the</strong> remodelling processand McCafé. We have excellent, highlycommitted franchisees <strong>here</strong>, entrepreneurswho are prepared to invest in <strong>the</strong> future.”As project manager, he appointedAustralian Vicki Fuller who followed her‘baby’ to <strong>Europe</strong> after having played animportant role in <strong>the</strong> spread of McDonald’scoffee shops Down Under. “We wereconvinced from <strong>the</strong> word go that <strong>the</strong> conceptwould work well and attract newguests in Germany,” she says. “The coffeemarket was young and growing rapidly.We took <strong>the</strong> most important from ourlearning process and developed <strong>the</strong>m <strong>for</strong><strong>the</strong> German market. Today, representativesof McDonald’s Australia come <strong>here</strong> –and not just <strong>the</strong>m – to learn from us.” Thecore model – good coffee at a fair price,supplemented by sweet foodstuffs – functionedas a kind of ‘mini-market’. “In Germany,we have now taken <strong>the</strong> conceptmuch fur<strong>the</strong>r,” says Fuller.Special lounge design, customised rangesand porcelain tableware are part of <strong>the</strong>McCafé character. When it comes to prod-Bane Knezevic, CEO and President of McDonald’sGermany, believed in McCafé from <strong>the</strong> beginningand lit <strong>the</strong> fire of enthusiasm among <strong>the</strong>franchisees.ucts, <strong>the</strong> rule is that <strong>the</strong> beverage side represents<strong>the</strong> global element while <strong>the</strong> foodmenu must be oriented towards localtastes. By <strong>the</strong> way, McCafé products generallyare not available at <strong>the</strong> McDrivecounter. The special appeal of <strong>the</strong> coffeebar module is that it brings totally newtarget groups – literally – through <strong>the</strong>door. The main target groups are youngadults, mo<strong>the</strong>rs with children, businesspeople and empty nesters, i.e. <strong>the</strong> veryyoung and seniors in <strong>the</strong> 50-60+ agegroup, with <strong>the</strong> latter posting <strong>the</strong> highestrates of growth.Compared to classic coffee-bar chains,McDonald’s has a decisive advantagewhen it comes to expansion – its densenetwork of outlets in small and mediumsizedtowns, as well as in major cities, airports,railway stations and on <strong>the</strong> motorways.W<strong>here</strong> <strong>the</strong> o<strong>the</strong>rs have to go togreat trouble to find suitable premises,<strong>the</strong> market leader simply builds its coffeebars in existing restaurants, which calls<strong>for</strong> around 50-100 sq m of floor space andan investment of around €100,000. If,at some point in time, Starbucks & Co.decide to branch out into more rural regions,<strong>the</strong>y are likely to have considerabledifficulties given <strong>the</strong> McDonald’s pricelevel. By <strong>the</strong>n, <strong>the</strong> customers will knowthat a tall latte macchiato (300 ml) costs€2.39 at McCafé, while <strong>the</strong> ‘grande’ version(400 ml) is available <strong>for</strong> €2.69.Cookies cost €1, chocolate cake €2.19.No food item costs more than €2.69, <strong>the</strong>highest price on <strong>the</strong> drinks list (frappégrande) is €3.39 (all prices <strong>for</strong> Germany).The average bill at a German coffeecounter amounts to €3.60 (food: 33%,beverages 67%). At <strong>the</strong> burger counter, itis about €5.75 per transaction. “Youcould say we have made coffee bars moredemocratic, like we did <strong>for</strong> <strong>the</strong> burgermany years ago,” says Vicki Fuller. “Ourprimary goal is to become everyone’sfavourite destination <strong>for</strong> coffee. And thismeans, no matter what we do, we will alwaysoffer great coffee at a good price.”However, it would be a mistake to look atMcCafé in isolation. Perhaps <strong>the</strong> most importantcommercial insight is that refurbishmentswith an integrated McCafé sellsignificantly more Big Macs and o<strong>the</strong>rcore products than those without. It’s because<strong>the</strong> extended menu brings in additionalcustomers and generally adds to<strong>the</strong> outlet’s appeal, in o<strong>the</strong>r words, producinggenuine synergies. T<strong>here</strong><strong>for</strong>e, <strong>the</strong>investment is worth it, even in casesw<strong>here</strong> coffee and cake account <strong>for</strong> a rela-


RussiaGermanyTypically, a cappuccino atMcCafé costs about <strong>the</strong> sameas a Big Mac. In two countries,<strong>the</strong> situation is totally different:in Russia, <strong>the</strong> price <strong>for</strong> a tallcappuccino is almost twice ashigh as <strong>the</strong> Big Mac price. InItaly, a tall cappuccino costsless than a third of McDonald’ssignature burger. This showsthat pricing <strong>for</strong> espresso basedcoffee drinks at McCafé isbased on <strong>the</strong> value consumersattribute to <strong>the</strong>se productsin <strong>the</strong> according countries –luxury or ordinary.■ ■ ■USABig Mac & Cappuccino Index ■ ■ ■ ■ ■ ■ ■ ■– Prices in €* –Big Mac Cappuccino RatioRussia (RUB62.0) 1.24 (tall) (RUB120) 2.40 1:1.94Australia (AUD3.45) 1.86 (standard) (AUD3.45) 1.86 1:1Hungary (HUF680) 2.04 (large) (HUF550) 1.65 1:0.81USA (US$3.54) 2.37 (large) (US$3.29) 2.23 1:0.93Austria 2.99 (grande) 2.99 1:1Germany 3.19 (tall) 1.99 1:0.62France 3.30 (gourmand) 2.70 1:0.82Sweden (SEK38) 3.30 (tall) (SEK38) 3.30 1:1Spain 3.40 (large) 3.45 1:1.01Italy 3.40 (tall) 1.10 1:0.32Ireland 3.80 (tall) 2.50 1:0.66*Exchange rate: beginning of June 2009Numbers refer mostly to recommended prices which may be altered by franchisees.Italytively small percentage of sales. In Germany,a typical remodelling, including<strong>the</strong> new shop-in-shop module, generates12-15% more sales and, in some cases,even significantly above 20%, comparedwith around 6-8% without. It’s no secretthat <strong>the</strong> costs involved are growing at afaster pace than sales but everyone acceptsthis. It’s about <strong>the</strong> future and creatinga positive, long-term perspective byrejuvenating <strong>the</strong> total package in a contemporaryway.Germany sees itself as <strong>the</strong> lead marketin <strong>Europe</strong>. Management and franchiseeshave identified <strong>the</strong> potential more clearlyand converted it more expeditiously thananyw<strong>here</strong> else. Those who were scepticalin <strong>the</strong> beginning became totally convincedwhen <strong>the</strong>y saw <strong>the</strong> figures from <strong>the</strong>pilot McDonald’s plus McCafé operations.As did McFamily members in many o<strong>the</strong>r<strong>Europe</strong>an countries, which are now rushingup to catch up.Expansion is now <strong>the</strong> name of <strong>the</strong> gamewith strong growth this year in Italy, Austria,France and Russia, too. In Portugal,<strong>the</strong> number of units operating under <strong>the</strong>McCafé flag has risen to 109 after hoveringa long time at 105. To date, however,McCafé is not to be found in any significantnumbers in <strong>the</strong> saturated coffee-barmarkets of Great Britain and Scandinavia.In distinction to most of <strong>the</strong> o<strong>the</strong>r <strong>Europe</strong>anand American coffee-bar chains,which have avoided <strong>the</strong> Italian marketwith its special coffee and bar tradition,McDonald’s didn’t hesitate to roll out itsMcCafés throughout Italy. The start tookplace in Milan in May 2005, and <strong>the</strong>n withtwo at once: <strong>the</strong> company-run outlet in<strong>the</strong> city’s Galleria Vittorio Emanuele anda second refurbishment at a franchiserestaurant in Cinisello Balsamo, a town of70,000 inhabitants on <strong>the</strong> outskirts of <strong>the</strong>Lombard metropolis.Today, some 80 units have been installedand <strong>the</strong> target is <strong>for</strong> 100 by <strong>the</strong> end of <strong>the</strong>year. “Preferred locations are city andcommercial centres, as well as arterialroads, ideally with filling stations and laybysin <strong>the</strong> vicinity,” explains Annamaria diChio of McDonald’s Italy. The moduleused in all outlets is <strong>the</strong> Cube design withshades of brown and cream, com<strong>for</strong>tableseats and small tables. Between 6 and12 sq m are required <strong>for</strong> <strong>the</strong> module.A cosy atmosp<strong>here</strong> and a strict focus onquality are <strong>the</strong> keys to breaking <strong>the</strong> ritualisedItalian habit taking breakfast or afternooncaffè in one of <strong>the</strong> country’s thousandsof small bars. “McCafé is a synonym<strong>for</strong> quality in Italy,” adds di Chio. “Thanksto certified products, such as Ottolina coffeeor guaranteed Italian milk, as well asto <strong>the</strong> emphasis on even <strong>the</strong> smallest details,such as porcelain tableware, platedecoration and <strong>the</strong> smile with which ourguests are served.” Naturally, espressoand cappuccino, supplemented by hotchocolate and a variety of teas, figureprominently on <strong>the</strong> list of beverages. On<strong>the</strong> food side, torta di mele (apple tart)und Monterosa cheesecake <strong>for</strong>ge <strong>the</strong> linkfrom Italy across <strong>the</strong> Atlantic.In Austria, McCafé was imported fromGermany with <strong>the</strong> help of franchiseeMichael Heinritzi, who operates restaur -ants in Bavaria, as well as in Salzburgand Tyrol (see p. 52). “Being very enthusiasticabout <strong>the</strong> concept myself, it naturallywasn’t difficult <strong>for</strong> me to convince mycolleagues in Austria,” says <strong>the</strong> entrepreneur.The first Austrian McCafé opened in2006 in <strong>the</strong> Tyrolean town of Völs. Extraimpetus was given by Andreas Schwerla,Managing Director of McDonald’s AustrianDivision <strong>for</strong> a good year now and previouslyCOO of McDonald’s Germany. Until<strong>the</strong> end of 2008, Austrian McCafés totalled50, in 2009, €42 m are being investedin <strong>the</strong> project ‘leadership of <strong>the</strong>coffee-bar market’ and <strong>the</strong> modernisationof at least 50 more restaurants. “We seecoffee as a big growth segment that willopen up completely new groups of customers.Annual growth of 15% is predicted<strong>for</strong> <strong>the</strong> coming years,” says Schwerla.48 FOODSERVICE EUROPE & MIDDLE EAST 3/09


B RAND M ANAGEMENTVicki Fullerfollowed her‘baby’ McCaféfrom Australiato <strong>Europe</strong>. “Wewere convincedfrom <strong>the</strong> wordgo that <strong>the</strong>concept wouldwork well inGermany”.Experience shows that, with <strong>the</strong> additionof a McCafé, <strong>the</strong> sales revenues of arestaurant in Austria climb by a good20%. In <strong>the</strong> case of restaurants that aresimply refurbished without <strong>the</strong> additionof a McCafé, <strong>the</strong> result is an increase ofabout 15%.The fact that Austria has its own coffeetradition is reflected by <strong>the</strong> food and beveragesoffered. ‘Melange’ (milk coffee),‘Großer Brauner’ (double mocha withcream) and Café (stretched espresso) caneasily keep up with <strong>the</strong> product portfolioof classic coffee houses. Although <strong>the</strong>entire range of foodstuffs is offered under<strong>the</strong> very Austrian heading ‘Mehlspeisen’(roughly = puddings), it is extremely internationaland stretches from curd-apricotcrumble, via chocolate cake and BlackForest gateaux, to apple tart and <strong>the</strong>obligatory American bakery programme(donuts, brownies, muffins, cookies). Therule of local food and global beveragesdoes not apply so strictly in Austria as ino<strong>the</strong>r countries.In France, <strong>the</strong> McCafé sub-brand was introducedin 2004 in a company-operatedrestaurant in Paris La Défense. Since<strong>the</strong>n, <strong>the</strong> number of French shop-in-shopoutlets has risen to 50 (out of 1,134) and itis planned to launch 250 by 2012. One of<strong>the</strong> flagship outlets (and <strong>the</strong> top-sellingone) is now on <strong>the</strong> Champs Élysées. Thefood profile is typically French with croissants,pains au chocolat, macarons andtartelettes while <strong>the</strong> range of beverages isheaded by cappuccino, frappés and lattemacchiato, and supplemented by Frenchand Italian specialities, such as café au laitand ristretto. Bestsellers: espresso andmacarons. Average bill: €3 (compared to€11 at <strong>the</strong> burger counter)“McCafé represents between 6-8% of arestaurant turnover but more than increasingsales, it also gives a new opportun -ity <strong>for</strong> our existing customers to visit usmore often and of course, attracts newguests,” reveals Caroline Deleuze, spokeswoman<strong>for</strong> McDonald’s France. “McCaféis not just a way to tap into coffee occasion;it can help to reposition McDonald’sin current and potential customer minds,!hearts, wallets as part of a total re-imagingprogram, and a way to build overallMcCafé can help to re -pos ition McDonald’s in currentand potential customer minds,hearts and wallets.site sales and profitability.”McCafé also made a start in Russia, in acompany-operated restaurant (t<strong>here</strong> areno franchisees in Russia) in Moscow’s OldArbat pedestrian zone back in 2005. “Ingeneral, <strong>the</strong> Russian coffee-bar markethas a great potential <strong>for</strong> growth because<strong>the</strong> number of coffee-bars per person inRussian cities is far lower than in <strong>the</strong> majorUS and <strong>Europe</strong>an cities,” says DmitriVoronov, McCafé project manager. The35 Russian McCafés opened to date offerten types of coffee and hot chocolate,three frappés and six kinds of tea, as wellas an assortment of 12 different cakes pluspastries, savoury pies and two differentciabatta sandwiches.As in most o<strong>the</strong>r countries, McCafé inRussia came <strong>full</strong>y up to expectations.“Having a McCafé in an existing restaur -ant creates a new and unique atmosp<strong>here</strong>.It expands our regular customers’choices, stimulates frequent visits andattracts new groups of customers whohave never crossed <strong>the</strong> threshold of aMcDonald’s restaurant be<strong>for</strong>e,” confirmsVoronov. “What <strong>the</strong>y appreciate is <strong>the</strong>high quality of coffee and o<strong>the</strong>r products,<strong>the</strong> com<strong>for</strong>t and moderate prices.”Now third in Russia’s coffee-bar market,<strong>the</strong> company plans to open 15 and 20 Mc-Cafés in 2009 and 2010 respectively.When remodelling <strong>the</strong> restaurants, tendifferent design styles are used, among<strong>the</strong>m ‘Local’, which was mainly used in<strong>the</strong> first outlets, as well as ‘Modern’, ‘Urban’,‘Generation Wenge’ and ‘New Urban’.Incidentally, t<strong>here</strong> is no special seatingarea <strong>for</strong> McCafé as in o<strong>the</strong>r countriesdue to insufficient space.McDonald’s began launching <strong>the</strong> brandthroughout <strong>the</strong> saturated US coffee-barmarket last year. Not, however, as a shopin-shopmodule but as a seal of quality <strong>for</strong>an up-graded and expanded range of coffeespecialities. Although t<strong>here</strong> were anumber of McCafé test stores in <strong>the</strong> homemarket of <strong>the</strong> parent brand at <strong>the</strong> beginningof <strong>the</strong> decade, <strong>the</strong> planned roll-outnever took place because <strong>the</strong> automobilecrazy Americans demand one thing inparticular – speed – in <strong>the</strong> important Mc-Drive business. The improved surroundingsand relaxing over a cup of coffee areonly of secondary importance in this case.Moreover, <strong>the</strong> willingness of franchiseesto invest in a second counter was obviouslynot overwhelming.For McDonald’s <strong>Europe</strong>, McCafé representsa new powerful competitive edge in<strong>the</strong> quickservice segment. The effect ofthis in <strong>the</strong> psyche of countless millions ofconsumers is to upgrade and fur<strong>the</strong>r modernise<strong>the</strong> parent brand in terms of positioningand image. The sober fast-food oreven junk-food tag is passé and its placehas been taken by a fresh, energeticlifestyle image – a place <strong>for</strong> young and oldto meet. Holger Beeck, Vice President Operationsof McDonald’s Germany: “In arelatively short time, McDonald’s has becomemore attractive, cooler and alsomore child-friendly. Success is cross-pollinationbetween McDonald’s and McCafé.Although we considered this and hopedto achieve it, we were really surprised at<strong>the</strong> significant and universal impact. Consumerslook at McDonald’s with McCafémore from a gastronomic perspective.”Greater diversity, better service, more reasonsto visit <strong>the</strong> restaurants – McCafé underlinesboth <strong>the</strong> experiential strengthand price/per<strong>for</strong>mance ratio of McDonald’s.“Suddenly, we are playing in a totallydifferent league.”BM50 FOODSERVICE EUROPE & MIDDLE EAST 3/09


D ESIGNMcDonald’s has invested billions in<strong>the</strong> re-launch of many of its 6,600<strong>Europe</strong>an restaurants since 2002.The demands placed on its brandimage have risen significantly. T<strong>here</strong>sult: sterile functionality is out,lifestyle is in.Lounge chairs, wood veneer, naturalcolours – <strong>the</strong> new look of McDonald’sEuro pean restaurants and McCafés is <strong>the</strong>work of French architect Philippe Avanzi,head of McDonald’s Design Studios inParis. For every country, t<strong>here</strong> is a port -folio of designs with names such as ‘Eternity’,‘Sport’, ‘Chicago’, ‘Origins’ and‘Wenge’. Additionally, flagship stores inprominent locations have individualoutfits. The superordinate motto: ‘Less ismore’.Common to all are high-grade materials,such as lea<strong>the</strong>r and wood, innovativeshapes and colours, warm, atmosphericlighting and a com<strong>for</strong>table ambience.The McCafé sections are always highlightedvisually and have <strong>the</strong>ir own designlanguage, e.g., ‘Cube’, ‘Flow’ and‘Sydney’, to create a lounge-like settingwith candles, flowers and large atmosphericphotographs, clearly distinguishedfrom <strong>the</strong> McDonald’s diningroom.Germany was <strong>the</strong> first country in <strong>Europe</strong>to seize and adapt <strong>the</strong> design innovationsimplemented in France. Acceptancelevels were highly encouragingand more rebuilds soon followed in Germanyand o<strong>the</strong>r markets. For eachrestaurant to be remodelled, local architectslicensed and trained by Avanzi producetailor-made design concepts basedon and working from strictly definedtemplates and broad outlines (<strong>for</strong>mat/size, colour and materials), while Avanzihimself constantly re-works, replacesand adds to <strong>the</strong> design styles and specifiesdifferent versions according to <strong>the</strong>circumstances of given locations. Theimage polish achieved by <strong>the</strong> remodellingas well as <strong>the</strong> addition of McCafécould hardly be more effective: “Brandexpression is in <strong>the</strong> store more than anythingelse,” says Denis Hennequin, PresidentMcDonald’s <strong>Europe</strong>. “McDonald’shas ignored <strong>for</strong> too long <strong>the</strong> restaurantdesign. When you enter <strong>the</strong> restaurant,you enter <strong>the</strong> brand.”BMLess IsMore■ ■ ■More Pics ■For more pictures ofMcDonald’s & McCafé,visit our website:www.food-serviceeurope.com/mcdonaldsFOODSERVICE EUROPE & MIDDLE EAST 3/0951


Modern andcosy design,flowers andcandles on <strong>the</strong>table, as wellas a fireplacecreate a feelgoodambienceat Heinritzi’sMcCafé in Kufstein,Austria.The VisionaryHe was one of <strong>the</strong> McCafé pioneers in Germany and played a decisiverole in <strong>the</strong> development and launch of <strong>the</strong> McDonald’s coffee <strong>for</strong>mula inGermany. Michael E. Heinritzi, with 39 restaurants, McDonald’s biggest<strong>Europe</strong>an franchisee, is a great fan of <strong>the</strong> system’s coffee-bar concept.Michael Heinritzi opened his McDonald’srestaurant at Irschenberg, in <strong>the</strong> immediatevicinity of <strong>the</strong> Munich-Salzburg motorway,eight years ago. He wanted it to be avery special kind of restaurant: big, attractivelysituated with a view of <strong>the</strong> Alps andso com<strong>for</strong>table that drivers would be reluctantto get back on <strong>the</strong> road. To thisend, Heinritzi introduced some innovationsthat were not provided <strong>for</strong> in <strong>the</strong> Mc-Donald’s system at <strong>the</strong> time: lounge-stylefurniture, a second counter and a coffeeand cake assortment. The restaurantopened around <strong>the</strong> clock and even has amodern fireplace. Originally, <strong>the</strong> coffeepartner was Segafredo and t<strong>here</strong> was alsoa small shop w<strong>here</strong> travellers could purchasenecessities <strong>for</strong> <strong>the</strong>ir journey. Heinritzicalled it McCafé. “Naturally, this firsttrial wasn’t a proper McCafé,” explains <strong>the</strong>businessman who, with 39 outlets in <strong>the</strong>sou<strong>the</strong>rnmost part of Germany, <strong>the</strong> Austrianstate of Tyrol and <strong>the</strong> city of Salzburg,is <strong>the</strong> world market leader’s biggest partnerin <strong>Europe</strong>. Last year, he was presentedwith <strong>the</strong> company’s <strong>for</strong>emost distinction,<strong>the</strong> Golden Arches Award, <strong>for</strong> his work.The pilot operation at Irschenberg was sosuccessful that Heinritzi soon launched asecond test balloon, a shop-in-shop cafeconcept in <strong>the</strong> Austrian town of Wörgl.And this, it should be noted, was two yearsbe<strong>for</strong>e McDonald’s Germany opened <strong>the</strong>first McCafé test stores in Braunschweig.Never<strong>the</strong>less, Heinritzi does not like to exaggeratehis role in <strong>the</strong> overwhelming successof McCafé in Germany: “This achievementis a team ef<strong>for</strong>t. The greatest praise isdue to Bane Knezevic,” says a modestHeinritzi. “The way he stood up in front of<strong>the</strong> franchisees and announced that heplanned to convert most of <strong>the</strong> 1,000restaurants into McCafés was sensational.Don’t <strong>for</strong>get, he had only just been appointedhead of McDonald’s Germany andt<strong>here</strong> was a lot of money at stake – moneythat <strong>the</strong> franchisees would have to invest,and money that <strong>the</strong> company provided inAfter training in hotel administration and a managementcareer with Sheraton, Steigenbergerand Lufthansa, Michael E. Heinritzi opened hisown McDonald’s restaurant in Rosenheim over25 years ago. At that time, he also worked at <strong>the</strong>counter and fried burgers. Today, his companyowns 39 restaurants (27 in Germany, 12 in Austria,17 with a McCafé at present) and employs1,800 people. “The staff is <strong>the</strong> most importantaspect,” says Heinritzi, who has received severalawards <strong>for</strong> <strong>the</strong> quality of <strong>the</strong> training in his res -taurants – <strong>full</strong>y in line with <strong>the</strong> McDonald’s ‘Planto Win’, which emphasises people followed byproduct, price, place and promotion. The franchisee’sannual sales revenues amount to around€100 m. Without being aware of <strong>the</strong> Australianprototype, he developed a coffee-bar modulecalled McCafé <strong>for</strong> his restaurant at Irschenberg in2001. www.mcdonalds-irschenberg.de<strong>the</strong> <strong>for</strong>m of a fee reduction <strong>for</strong> a limited period<strong>for</strong> those franchisees who were preparedto rebuild <strong>the</strong>ir restaurants.”Only those franchisees with a top operationalper<strong>for</strong>mance were chosen to play aleading role in <strong>the</strong> re-launch. “Anyonewho showed signs of weakness had to firstlydo <strong>the</strong>ir homework. Finally, McDonald’sparted company with a number of franchisees,as well as over 100 of <strong>the</strong>ir own locations,”says Heinritzi recalling <strong>the</strong> internalupheavals of recent years. It goes withoutsaying that he was one of <strong>the</strong> first tobegin implementing <strong>the</strong> new design with aMcCafé in <strong>the</strong> restaurants in 2005 – “Withsales increases of 20-30%.” Decisive, however,was <strong>the</strong> <strong>full</strong> package of re-launchmeasures: “The McDonald’s concept wasgiven an enormous boost by <strong>the</strong> more attractiveambience, a new kitchen module,<strong>the</strong> Bridge Operating Plat<strong>for</strong>m, whichmade it possible to prepare Big Mac & Co. àla minute, <strong>the</strong> around-<strong>the</strong>-clock hours ofopening now standard at many locationsand, of course, <strong>the</strong> coffee and cakecounter.” The image of <strong>the</strong> concept wasalso streng<strong>the</strong>ned greatly by <strong>the</strong> ‘1x1’ (tenproducts <strong>for</strong> €1 each) and new imageproducts.Naturally, <strong>the</strong> restaurant at Irschenbergtoday also has a ‘proper’ McCafé. Sales at<strong>the</strong> 500-seat outlet (with annual revenuesof €5 m (net), it is one of <strong>the</strong> top threerestaurants in Germany) have jumped by20% since <strong>the</strong> conversion w<strong>here</strong>by ‘only’15% of visitors actually go to <strong>the</strong> ‘coffeeand cake’ department. Altoge<strong>the</strong>r, morethan 10% of expenditures go on coffeeproducts – far more than <strong>the</strong> current systemaverage of around 6-8%. At <strong>the</strong> burgercounter, too: “We don’t do anything differ-52FOODSERVICE EUROPE & MIDDLE EAST 3/09


F RANCHISINGent to be<strong>for</strong>e <strong>the</strong> conversion, yet two thirdsof additional revenues are generated byBig Mac & Co.!”It is <strong>the</strong> same everyw<strong>here</strong>: “New customerscome. Our regulars come more often,”enthuses Heinritzi. The restaurant isa popular meeting place <strong>for</strong> German andAustrian business people. Many childrenplaying in <strong>the</strong> McGym & Fun Club begin tocry when <strong>the</strong>ir parents say its time to continue<strong>the</strong> journey. Similarly, it is difficult tocoax many teenagers out of <strong>the</strong> MediaLounge with its free WLAN. Regularguests account <strong>for</strong> around 40% of <strong>the</strong> total,“... although some people only cometwice a year on <strong>the</strong>ir way to <strong>the</strong>ir holidaydestination.” At peak periods, four to fiveMcCafé employees cater <strong>for</strong> <strong>the</strong> guests’coffee and cake wishes, supply <strong>the</strong>m withbagels (up to 100 per day!) and soups. Theaverage bill comes to about €4 (gross); at<strong>the</strong> burger counter it is about €6 and at<strong>the</strong> McDrive about €7. Top sellers arecapp uccino and, at present, <strong>the</strong> currentspecial cake offer, ‘Bee Sting Cake’.“In Germany, McCafé has given McDonald’sa position that no competitor will be■ ■ ■ Franchisees: They’re Lovin’ It ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Paolo Arena, McDonald’s franchisee with four restaurants (2 of <strong>the</strong>m with a McCafé) in Cosenza,Italy: “I had already heard of McCafé when I had <strong>the</strong> opportunity to see <strong>the</strong> concept ‘live’ on atrip to Hong Kong. And I was very impressed. At this time, I was planning to modernise one ofmy restaurants – and immediately had no doubt that a McCafé should be part of it. Since <strong>the</strong>n,my feeling about <strong>the</strong> shop-in-shop concept has not changed. On <strong>the</strong> contrary, I’m lovin’ it moreand more. Particularly because of <strong>the</strong> way <strong>the</strong> concept has always been developed and improvedstep by step. I would say that McCafé is <strong>the</strong> flower in <strong>the</strong> buttonhole of McDonald’s!Something that makes our restaurants more modern, more innovative and more elegant. In anutshell, something that perfectly matches what our customers want.We have lots of regular customers, especially <strong>for</strong> breakfast. Without doubt, <strong>the</strong>y perceive McCaféas a high-quality but low-priced alternative to <strong>the</strong> classic Italian bar. My McCafé in Rende Marconicontributes 9% towards total restaurant revenues. The average bill comes to €2.26 (McDonald’scounter: €6.64). It is not easy to quantify <strong>the</strong> influence of McCafé on <strong>the</strong> business as a whole.However, I have no doubt that it brings us into contact with guests who would o<strong>the</strong>rwise neverhave entered a McDonald’s restaurant.”able to challenge in <strong>the</strong> near future – if <strong>for</strong>no o<strong>the</strong>r reason than that we have <strong>the</strong>densest network of restaurants,” saysHeinritzi. Now that <strong>the</strong> conversion of hisrestaurants is well underway and almostall will have a McCafé and a new design by2010, he is turning his attention to <strong>the</strong>McDrive counter. “A subject that we haveun<strong>for</strong>tunately neglected over <strong>the</strong> last 20years – despite <strong>the</strong> fact that we generate30-50% of sales t<strong>here</strong>.” Among <strong>the</strong> topitems on <strong>the</strong> agenda <strong>here</strong> are, in particular,speeding up <strong>the</strong> process, optimumcommunication via new technology andnew order phones, and a new product presentation.By <strong>the</strong> way: t<strong>here</strong> is still a fireplace atIrschenberg – and in several o<strong>the</strong>r Heinritzirestaurants. O<strong>the</strong>r factors contributingto a cosy atmosp<strong>here</strong> are candles andfresh flowers. For, even in <strong>the</strong> world’sbiggest foodservice system, top franchiseeshave a certain freedom to add <strong>the</strong>irown individual touch ...BMFOODSERVICE EUROPE & MIDDLE EAST 3/0953

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