Mc Donalds and Big Mac Index

McDonald's

Founded in 1955, McDonald’s built its success less on the taste of its food than on rock-solid standards and unfailingly good service (instilled during rigorous employee training). A web of alliances with other top brands and an energetic defence of its trademark cemented its position as the world’s biggest fast-food retailer.

With restaurants in over 100 countries, McDonald’s is also a symbol of American-led globalisation. Burger-bashers complain that the chain destroys local traditions and promotes unhealthy eating. In response, McDonald's has adapted to local tastes. And the proverbial billions seem to like its food, even in France.

At least, until recently. Bad management and the rise of “fast casual” restaurants saw the company announce a loss and an unconvincing new strategy in January 2003. McDonald's has since staged a remarkable comeback, now led, in Europe, by a Frenchman.

How a Frenchman is reviving McDonald's in Europe

WHEN Denis Hennequin took over as the European boss of McDonald's in January 2004, the world's biggest restaurant chain was showing signs of recovery in America and Australia, but sales in Europe were sluggish or declining. One exception was France, where Mr Hennequin had done a sterling job as head of the group's French subsidiary to sell more Big Macs to his compatriots. His task was to replicate this success in all 41 of the European countries where anti-globalisers' favourite enemy operates.

So far Mr Hennequin is doing well. Last year European sales increased by 5.8% and the number of customers by 3.4%, the best annual results in nearly 15 years. Europe accounted for 36% of the group's profits and for 28% of its sales. December was an especially good month as customers took to seasonal menu offerings in France and Britain, and to a promotion in Germany based on the game of Monopoly.

Mr. Hennequin's recipe for revival is to be more open about his company's operations, to be “locally relevant”, and to improve the experience of visiting his 6,400 restaurants. McDonald's is blamed for making people fat, exploiting workers, treating animals cruelly, polluting the environment and simply for being American. Mr Hennequin says he wants to engage in a dialogue with the public to address these concerns.

He introduced “open door” visitor days in each country which became hugely popular. In Poland alone some 50,000 visitors came to McDonald's through the visitors' programme last year. The Nutrition Information Initiative, launched last year, put detailed labels on McDonald's packaging with data on calories, protein, fat, carbohydrates and salt content. The details are also printed on tray-liners.

Mr. Hennequin also wants people to know that “McJobs”, the low-paid menial jobs at McDonald's restaurants, are much better than people think. But some of his efforts have backfired: last year he sparked a controversy with the introduction of a “McPassport” that allows McDonald's employees to work anywhere in the European Union. Politicians accused the firm of a ploy to make cheap labour from eastern Europe more easily available to McDonald's managers across the continent.

To stay in touch with local needs and preferences, McDonald's employs local bosses as much