Issuu on Google+

coverA3 182:Layout 1 06/02/2013 09:21 Page 1

BUILDING DESIGN &

CONSTRUCTION THE MAGAZINE FOR THE CONSTRUCTION INDUSTRY MARCH 2013

INSIDE:

MARCH 2013 ISSUE 183

FMtoday

THE MAGAZINE FOR FM PROFESSIONALS

BUILDING DESIGN & CONSTRUCTION

INCLUDING: BIFM AWARDS 2013; ERIC WRIGHT FACILITIES MANAGEMENT; AMALGAMATED LIFTS

RE-IMAGING MCDONALD’S ELECTRICITY NORTH WEST

BRINGING ENERGY TO YOUR DOOR

CREATIVE SOLUTIONS

BW ARCHITECTURE

THE CAREY GROUP QUALITY PROJECTS AND CLIENT SATISFACTION


Mcdonalds:feature 2 23/01/2013 12:13 Page 10

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S

RE-IMAGING

MCDONALD’S

Despite uncertainty in the global economy, McDonald’s UK sales continue to soar as the brand appeals to a broader customer base than ever before cDonald’s is thriving. Despite uncertainty in the global economy, UK sales continue to soar as the McDonald’s brand appeals to a broader customer base than ever before. A comprehensive re-imaging programme, that began in 2006, sought to revitalise the brand in an increasingly competitive marketplace. This year the entire portfolio of UK McDonald’s outlets will have been given their contemporary makeover – that’s more that 1,200 restaurants. Opening a further sixteen stores in 2012 (and creating 800 jobs in the process), McDonald’s has been refurbishing and modernising its restaurants to create a more appealing, fresh and up to date environment for customers. This has run alongside boosting its coffee offer, broadening its product range, and pioneering the use of free Wi-Fi as an added-value service for diners. Modernisation has encouraged new custom while offering more to traditional consumers such as families. More and more business men and women are enjoying coffee and breakfast on weekday mornings, the improved coffee range and free internet access

M

10

proving highly attractive, while food-for-now has never been more readily available with the restaurant chain’s 760 Drive-thru outlets. Late night and 24-hour opening times have also proved successful with young adults, especially students. The core clientele – families, which equates to around fifty percent of business – can also enjoy a better internal restaurant layout to reduce the stress of ordering, while children can expend their energy in play areas both inside and out. Elsewhere, increased transparency in terms of the ingredients used and the dietary impact of the food itself has successfully moved the brand away from the idea that fast food is inherently unhealthy. However, perhaps more importantly, value for money in conjunction with convenience has driven sales in the UK. Jill McDonald, the CEO of McDonald’s in the UK, said, “Customers are a lot more discerning about how they spend their money. We can offer a meal out for a family of four for less than £15.” She added it is important, during this period of economic stagnation, for the corporation to maintain a focus on “delivering great food, in modern restaurants, served by friendly and efficient staff at affordable prices. Families in particular are likely to be feeling the

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

www.bdcmagazine.co.uk


Mcdonalds:feature 2 23/01/2013 12:13 Page 11

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S

www.bdcmagazine.co.uk

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

11


Mcdonalds:feature 2 23/01/2013 12:13 Page 12

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S

12

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

www.bdcmagazine.co.uk


Mcdonalds:feature 2 23/01/2013 12:13 Page 13

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S squeeze more than ever. So it is important that we continue to understand the reality of what they’re facing today and what they want from us as a result.” Eight out of ten UK families visit McDonald’s each year and the restaurant chain now serves more than three million customers each day. With that equating to more than one billion customers each year it’s no doubt that sales figures continue to impress. Sales of premium burgers such as the Chicken Legend, breakfast products, and the latenight menu designed for revellers have all grown more than ten percent compared to 2011. To further complement the successful period for McDonald’s was its prominent presence at the London 2012 Olympic and Paralympic Games. As Official Restaurant of the Games it had four restaurants inside the Olympic Park in Stratford, including the biggest and busiest McDonald’s in the world which seated over 1,500 customers both inside and out. Jill McDonald said, “The summer of 2012 was an exciting one for the country as well as for us at McDonald’s. But it wasn’t just about London 2012. We experienced another strong quarter of growth in sales and customer visits all around the UK, with people choosing us because we continue to provide good food and good service at great value for money.” Today, McDonald’s occupies five-million square feet of restaurant space across the UK. Outlets range from prominent high street locations to leisure and retail parks, motorway service stations and positions near high volume traffic routes, shopping centres and concession stands in Asda supermarkets. This varied portfolio reflects McDonald’s

www.bdcmagazine.co.uk

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

13


Mcdonalds:feature 2 23/01/2013 12:13 Page 14


Mcdonalds:feature 2 23/01/2013 12:13 Page 15

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S

ongoing adaptability to customer need, its commitment to offer optimum convenience and the varied nature of its expanding customer base. RE-IMAGING FOR TODAY’S MARKET In an increasingly competitive market weighted under global concerns directed towards the strength of the economy, McDonald’s has continued to prosper. It has achieved this because of a number of factors. Franchising, for example, has enabled the restaurant chain to expand quickly while retaining absolute control of its brand, menu and pricing. It has shown it can be innovative and dynamic alongside retaining a familiarity with its customer base that celebrates the traditions of the business. For instance, Happy Meal tieins where themed food and activity is inspired by the latest film releases, free Wi-Fi, or experimentation with new menu items based on popularity and regional tastes, example its ability to move with the times. This is in addition to its long-established strengths – the recognisable brand and logo, classic products such as the Big Mac and Chicken McNuggets refusing to go out of fashion, and low prices. Yet, McDonald’s was first established on the concept of ultimate convenience and this still prevails as its defining quality. Brothers Richard and Maurice McDonald pioneered the concept that would make the business a multi-billion dollar global corporation in 1948

www.bdcmagazine.co.uk

when they developed the revolutionary Speedee Service System. Based on principles still prevalent today, the system was built to achieve three goals: speed of delivery, low prices and high volume. The brothers reduced the size of their original menu to concentrate on core, popular items such as hamburgers, soft drinks, fries and milkshakes and engineered a kitchen that could produce each item in a procedure resembling that of an assembly line. This changed the face of the industry. Fast-food was born. From San Bernardino in California, the concept spread exponentially. Instantly cooked, prepared and served food at a budget price was wildly popular with restaurant-goers worldwide. In 1967, Canada opened its first McDonald’s restaurant, followed by outlets in Costa Rica, Panama, Holland and Germany. Then the corporation saw huge sales in East Asia, opening its first restaurant in Japan on July 20th, 1971. McDonald’s now has over 1,400 outlets in Japan, and in 1993 became the country’s most successful fast-food chain. In the UK, the first McDonald’s restaurant was opened in Woolwich, South-East London in 1974. The brand saw steady growth in the earlier years until the 1990s when for a period of time around 100 new stores were being built every year. This ceased in 2003 when McDonald’s was forced to reappraise its image under increased criticism towards the fast-food market, particularly its potential impact on

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

15


Mcdonalds:feature 2 23/01/2013 12:14 Page 16

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S

health. This saw the wholesale re-imaging programme begin in 2006. Initially, instead of building new stores, McDonald’s concentrated on its existing property portfolio to reinvigorate demand for its product and services. The UK’s re-branding campaign has included a transparent approach to supply chain methods and the nutritional value of McDonald’s food. It has also sought to highlight how the company has continued to enforce the most stringent hygiene controls, the measures it has taken to reduce its carbon footprint, its pro-active work in the community, and its investment in staff. Henry Trickey, Vice-President of Development, says re-imaging is about providing a fundamental visual image that says to customers McDonald’s has changed. “It was well publicised that our business was not in a good state in 2006. Our restaurants looked poor and dated, and we hadn’t invested in our food products, beverages or our staff for a number of

16

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

www.bdcmagazine.co.uk


Mcdonalds:feature 2 23/01/2013 12:14 Page 17


Mcdonalds:feature 2 23/01/2013 12:14 Page 18

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S years. The re-imaging was part of a major programme to turn our business around. We realised that no matter what we did in the restaurant, if we didn’t have an environment that was modern and contemporary (especially in such a competitive market in the UK), we wouldn’t be able to succeed with all the other transformational initiatives we were putting in place. Added to that, our customers had significant alternatives to go to – pizza restaurants and other fast food locations. We looked very dated and we needed to respond to that.” In 2006 the national re-imaging programme started with the chain’s high street outlets and the McDonald’s team has been fully modernising an average of 200 restaurants per year since then. Quite quickly, a significant increase in sales showed customers were responding well to the changes. However, this phenomenal growth brings new challenges. “It is a very different concern than the one we faced ten years ago,” says Henry. “Now the question is how we build capacity in our restaurants to cater for increased demand. We’re building a lot of dining area extensions and additional order points in the Drive-thru outlets so we can serve cars more effectively and we are continuing to upgrade our customer experience wherever we possibly can.”

“THE QUESTION NOW IS HOW WE BUILD CAPACITY IN OUR RESTAURANTS TO CATER FOR INCREASED DEMAND” HENRY TRICKEY VICE-PRESIDENT OF DEVELOPMENT

18

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

www.bdcmagazine.co.uk


Mcdonalds:feature 2 23/01/2013 12:14 Page 19


Mcdonalds:feature 2 23/01/2013 12:14 Page 20

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S

20

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

www.bdcmagazine.co.uk


Mcdonalds:feature 2 23/01/2013 12:14 Page 21

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S

The initial design principle was based on transforming the brand image on the high street. Although the recognisable arches of the McDonald’s logo prevailed, a colour scheme change was administered with the familiar reds and yellows replaced by dark green with white lettering. Shop fronts were opened up with full glazing where possible and excess clutter such as multiple marketing posters was removed. Seating for different types of customer was introduced such as barstool communal seating and private booths. Nine different design schemes were used throughout the property portfolio to ensure that each restaurant had an element of individuality. This also differentiated restaurants on a regional basis. Flagship, high profile stores such as McDonald’s on The Strand in London or its Chelmsford outlet were given the stylish Wood and Stone scheme (with original wooden pan-

elling and leather armchairs) while more costeffective interiors were built in locations with a lower volume or different profile of customers. EXPANDING THE PROPERTY PORTFOLIO After a period of consolidation between 2006 and 2008, McDonald’s began opening new stores once again. The focus, driven by the restaurant chain’s commitment to ultimate convenience, was making sure new restaurants were in the right locations to suit their customers and the priority remained its Drive-thru outlets. In the middle part of the 2000s, McDonald’s felt that its coverage on high streets and shopping centres was as strong as it needed to be. However, it identified significant opportunities across the UK to expand the Drive-thru offering. Currently, of its 1,206 properties, 760 provide the Drive-thru service. As McDonald’s looks to its next stage of

NINE DIFFERENT DESIGN SCHEMES WERE USED THROUGHOUT THE PROPERTY PORTFOLIO TO ENSURE THAT EACH RESTAURANT HAD AN ELEMENT OF INDIVIDUALITY

www.bdcmagazine.co.uk

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

21


Mcdonalds:feature 2 24/01/2013 16:49 Page 22

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S

property development it has identified around 300 future opportunities to better interact with this Drive-thru element of customer demand. Over the next few years Mr Trickey expects eighty percent of new stores to cater for customers preferring to stay in their cars. “Because of the planning timescales around these restaurants and the fact it is quite a complex development, there is an average of eighteen months to two years from the moment we approve a site, to getting it open. In 2012 we opened sixteen new stores, this year we’re planning twenty-three and then we’re going to get to a range of about thirty opening per year.” However, Mr Trickey admits building a number of new restaurants will not compromise on high

22

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

standards and McDonald’s will always remain focussed on quality. Drive-thru units are developed based on a standard modular build, either single or two-storey. “Although they are modular buildings, these aren’t like 1990’s low-cost, low-quality developments. These buildings have solid concrete floors and steel frames and through modular construction we are able to accelerate our development time frames. It is also beneficial during the winter – we can take out all of the issues around building over the colder months where the weather is less predictable.” McDonald’s either buys freeholds and develops the site itself or takes a lease and negotiates a contribution from a developer where they will do

www.bdcmagazine.co.uk


Mcdonalds:feature 2 24/01/2013 16:49 Page 23


Mcdonalds:feature 2 06/02/2013 09:26 Page 24


Mcdonalds:feature 2 26/01/2013 08:23 Page 25

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S

the ground works and McDonald’s will erect the building and rent it from the developer. It is a very flexible approach and one of the prominent reasons the business has continued to be so successful. MOVING FORWARD Today, it isn’t surprising to see large flat-screen televisions in McDonald’s restaurants while customers busily browse the internet on personal devices and laptops thanks to free Wi-Fi. It is the modern McDonald’s – convenience and functionality in the 21st century.

www.bdcmagazine.co.uk

As the restaurant chain continues to improve its property portfolio, and certainly now as it begins another programme of upgrades, customers can expect further advances that embrace new technology to make the overall experience of visiting McDonald’s a pleasure with added value. One of its groundbreaking schemes is a test concept McDonald’s has called the Spirit of Family. The innovative restaurant design incorporates a number of elements aimed at enhancing the family experience. As families make up around fifty percent of business in the UK for McDonald’s, this

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

25


Mcdonalds:feature 2 26/01/2013 08:23 Page 26

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S strategic initiative has been developed to reduce stress on both parents and children, and enhance the experience of visiting the restaurant. Key advantages of the concept derive from the incorporation of new technology. At one of its Milton Keynes restaurants, McDonald’s is currently testing the Spirit of Family concept. One new addition, for example, known as the Tool Box, uses a digital display to give parents a one-stop assistance point to make an order, take a high chair or handle other tasks such as collecting condiments. Self-order kiosks, iPad stations for consumers and motion-sensitive gaming tables are also part of the design. “There are many technological elements to the Spirit of Family concept,” says Mr Trickey. “Children are occupied while they eat through the digital gaming table in addition to iPad stations and a separate children’s play area. We want to provide a comfortable environment so that parents and children can enjoy themselves.” McDonald’s will be rolling out some of the digital and physical play elements of the Spirit of Family concept to over thirty restaurants in the next twelve months.

BUILDING FOR A SUSTAINABLE FUTURE The business remains committed to sustainability and environmental efficiency, making great strides in recent years to reduce its carbon footprint. In existing restaurants it has replaced dated lighting systems with low-energy bulbs, while other electrical devices such as hand dryers have been upgraded with new, more efficient technology. Using electricity-metering systems at each restaurant location has enhanced effective energy use by constantly monitoring consumption, allowing McDonald’s to act upon areas for improvement. Other measures have included waterless urinals while the delivery fleet runs on bio diesel made from recycling used cooking oil from the restaurants. Mr Trickey says McDonald’s has carried out a lot of work with the Carbon Trust since 2006 to see where it can make improvements in its environmental commitments. Now, with new stores, it is aiming for BREEAM accreditation to highlight the advances it has made in green construction. “We have our own internal standards to enhance efficiency in our new builds,” says Mr Trickey. “For example, we use air source heat pumps

THE BUSINESS REMAINS COMMITTED TO SUSTAINABILITY AND ENVIRONMENTAL EFFICIENCY, MAKING GREAT STRIDES IN RECENT YEARS TO REDUCE ITS CARBON FOOTPRINT

26

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

www.bdcmagazine.co.uk


Mcdonalds:feature 2 06/02/2013 09:28 Page 27


Mcdonalds:feature 2 14/02/2013 12:01 Page 28

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S

for heating our buildings, we install photovoltaic panels to generate enough lighting to illuminate our kitchen, and we manage our energy consumption through electricity metering. “We also re-circulate the waste heat from our freezers and chillers to heat incoming cold water supplies and we’ve got motion sensors around the back-of-house areas and light sensors around the perimeter of our dining areas to save energy. The incorporation of sun tubes also enables us to reduce our reliance on artificial lighting.” Recently, its re-imaged restaurant on the Strand in London, one of its busiest venues,

28

enjoyed huge investment in energy-saving technology. Increased efficiency in the external signage and LED spotlights inside the building were amongst a number of new features. Furthermore, working with Go Green, McDonald’s ensures the majority of its construction waste (ninety-seven percent) on both new and refurbishment contracts is recycled and does not go to landfill. Mr Trickey highlights the development work at the Olympic Park as an example of its sustainable commitment. For example, all elements of the four restaurants built on the park were constructed with the intention of re-use where possible. The serving

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

www.bdcmagazine.co.uk


Mcdonalds:feature 2 06/02/2013 09:30 Page 29

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S

www.bdcmagazine.co.uk

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

29


Mcdonalds:feature 2 06/02/2013 09:59 Page 30


Mcdonalds:feature 2 26/01/2013 08:24 Page 31

RETAIL, LEISURE AND HOSPITALITY: MCDONALD’S counters, for instance, were built in sections to allow them to be broken up and re-used in other restaurants. “All the furniture, wall panelling, and kitchen equipment were taken out after the games and are now in our re-imaged restaurants,” adds Mr Trickey. “We were committed to helping LOCOG meets its objective of making London 2012 the greenest Olympic Games in history. We certainly feel we did our bit.” In the 30,000 square foot two-storey McDonald’s venue inside the Olympic Park, there were 5,500 individual elements, including the buildings themselves, that have now been re-used on refurbished outlets or new builds. A CAN-DO ATTITUDE The McDonald’s development team, the fifty-strong driving force behind the re-imaging programme over the last six years, has a “phenomenal can-do attitude” says Mr Trickey. “If you look at the scale of projects that we’ve been doing over the last few years – all project managed internally – we achieve more than any other business I’ve worked in.” The Vice-President of Development highlights the efficiency of his department in the way it works with suppliers and consultants to bring projects from the concept stage to construction and final delivery. He also highlights the need to remain costeffective because McDonald’s works closely with its network of franchisees who understandably want to make sure they get the best value for money.

www.bdcmagazine.co.uk

“The speed with which we do things at McDonald’s, the capability of our people and the strength of their team work in terms of working with consultants and suppliers is really second to none. We have really strong working relationships and we set very high standards of our people and our suppliers and they all rise to them. “It is a huge team ethic in this business and people really have a desire to succeed and do the job well and one of the reasons for that is we are predominantly a franchised business. My team are

since 2007 examples the progress the restaurant chain has made in the last few years. Now, the challenge is on advancing the overall experience for customers and ensuring the restaurants themselves have the capacity to meet demand. The cycle will begin again in 2014, as the first re-imaged restaurants are further developed in line with the latest design concepts. These will incorporate new energy efficiency measures as well as advanced forms of customer interaction

“THE SPEED WITH WHICH WE DO THINGS AT MCDONALD’S, THE CAPABILITY OF OUR PEOPLE AND THE STRENGTH OF THEIR TEAM WORK IN TERMS OF WORKING WITH CONSULTANTS AND SUPPLIERS IS REALLY SECOND TO NONE” working for franchisees who are paying for projects out of their own money and they are focussed on getting value for that money. My team as a consequence have a very strong customer ethos – the customer is the franchisee – so we are very customer focused in that regard.” As the re-imaging programme concludes, McDonald’s is now looking ahead to the next stage of development. Forty percent growth

such as elements of the Spirit of Family concept. McDonald’s will also be building dining room extensions and additional order points at Drivethrus to cater for increased popularity. The majority of new build work is expected to focus on Drive-thrus as McDonald’s continues to post impressive sales figures in this sector. www.mcdonalds.co.uk

BUILDING DESIGN AND CONSTRUCTION MAGAZINE

31


Mcdonald's feb 2013 with henry trickey