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Case Study MC Donald

McDonald's has made several innovations over its 50+ year history related to restaurant layout and design. Its latest innovation is a $300,000-400,000 redesign of all 30,000 restaurants globally. The new design separates the dining area into three zones - a "linger zone" for socializing, a "grab and go zone" for quick service, and a "flexible zone" geared towards families. McDonald's has found that innovating its facility layout provides a competitive advantage through increased sales and efficiency.

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289 views2 pages

Case Study MC Donald

McDonald's has made several innovations over its 50+ year history related to restaurant layout and design. Its latest innovation is a $300,000-400,000 redesign of all 30,000 restaurants globally. The new design separates the dining area into three zones - a "linger zone" for socializing, a "grab and go zone" for quick service, and a "flexible zone" geared towards families. McDonald's has found that innovating its facility layout provides a competitive advantage through increased sales and efficiency.

Uploaded by

Phantom 69
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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C H A P T E R 9

GLOBAL COMPANY PROFILE


McDonald’s Looks for Competitive
McDonald’s
Advantage Through Layout

I n its over half-century of existence, McDonald’s has revolutionized the restaurant industry by
inventing the limited-menu fast-food restaurant. It has also made seven major innovations.
The first, the introduction of indoor seating (1950s), was a layout issue, as was the second,
drive-through windows (1970s). The third, adding breakfasts to the menu (1980s), was a product
strategy. The fourth, adding play areas (late 1980s), was again a layout decision.
In the 1990s, McDonald’s completed its fifth innovation, a radically new redesign of the kitch-
ens in its 14,000 North American outlets to facilitate a mass customization process. Dubbed the
“Made by You” kitchen system, sandwiches were assembled to order with the revamped layout.
In 2004, the chain began the rollout of its sixth innovation, a new food ordering layout: the
self-service kiosk. Self-service kiosks have been infiltrating the service sector since the introduction
of ATMs in 1985 (there are over 1.5 million ATMs in banking). Alaska Airlines was the first airline to
provide self-service airport check-in, in 1996. Most passengers of the major airlines now check
themselves in for flights. Kiosks take up less space than an employee and reduce waiting line time.
Now, McDonald’s is working on its seventh innovation, and not surprisingly, it also deals with
restaurant layout. The company, on an unprecedented scale, is redesigning all 30,000 eateries
around the globe to take on a 21st-century look. The dining area will be separated into three
sections with distinct personalities: (1) the “linger” zone focuses on young adults and offers
Rick Wiliking/Corbis

McDonald’s finds that kiosks reduce both space requirements and waiting; order taking is faster. An added benefit is that customers like them. Also,
kiosks are reliable—they don’t call in sick. And, most important, sales are up 10%–15% (an average of $1) when a customer orders from a kiosk,
which consistently recommends the larger size and other extras.

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M12_HEIZ0422_12_SE_C09.indd 368 04/11/15 4:43 PM


Nancy Siesel/The New York Times/Redux

The redesigned kitchen of a McDonald’s


in Manhattan. The more efficient layout
requires less labor, reduces waste, and
provides faster service. A graphic of this
“assembly line” is shown in Figure 9.11.

comfortable furniture and Wi-Fi connections; (2) the


“grab and go” zone features tall counters, bar
stools, and flat-screen TVs; and (3) the “flexible”
zone has colorful family booths, flexible seating, and
kid-oriented music. The cost per outlet: a whopping
$300,000–$400,000 renovation fee.
As McDonald’s has discovered, facility layout is
indeed a source of competitive advantage.
ZUMA Press, Inc./Alamy

Flexible Zone
This area is geared for family and larger groups, with movable tables and chairs.
McDonald’s Corporation
McDonald’s Corporation

Grab & Go Zone Linger Zone


This section has tall counters with bar stools for customers who Cozy booths, plus Wi-Fi connections, make these areas attractive to those who want to hang
eat alone. Flat-screen TVs keep them company. out and socialize.

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M12_HEIZ0422_12_SE_C09.indd 369 04/11/15 4:43 PM

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