Jim Cantalupo, who took over as chief executive of McDonald's in January, has said that the company is switching from a programme of new store openings to focusing on building sales in existing restaurants. It plans to open a total of 360 new restaurants worldwide this year, compared with more than 1,000 last year.
The company outlined a plan that would include five-point improvements in speed of service, friendliness and food by 2005, as well as improving crew productivity and cleanliness. Some reports have said that staff will be given smiling lessons.
According to Cantalupo: "The world has changed. Our customers have changed. We have to change, too. Growth comes from being better, not just expanding to have more restaurants."
"The new McDonald's is focused on building sales at existing restaurants rather than on adding new restaurants. We are introducing a new level of discipline and efficiency to all aspects of the business and are setting a new bar for performance," he said.
In response to consumers wanting healthier diets, McDonald's has started to broaden its menu of burgers, shakes and fries to include foods like fruit and salad.
McDonald's is a favourite target of anti-capitalist, anti-globalisation protestors in countries around the world, and is also suffering a backlash in the West against low-quality fast food, following the publication of books like 'Fast Food Nation' by Eric Schlosser. Sales have suffered accordingly.
As a symbol of American culture, it also comes in for criticism. One of the chain's Paris branches was at the centre of a demonstration against the war in Iraq recently.
Closer to home, McDonald's has been named in a number of civil suits, with complainants criticising the fast-food chain's marketing and menu for their weight problems, leading to speculation that the industry could be facing mass litigation, as seen by the tobacco industry.
Cantalupo was speaking to analysts in New York in a meeting to mark 100 days in office. He took over from Jack Greenberg on January 1.
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