Heat Goes On Rivals In Fast-Food War

Nz Herald

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New Zealand’s fast-food wars are heating up, with McDonald’s revamping its Golden Arch restaurants and revealing plans to open five new outlets each year.

There will be new restaurant layouts and fittings in a push that will cost the United States-based corporation and its 60 New Zealand franchisees $50 million this year and $100 million by 2010.

McDonald’s New Zealand country manager Mark Hawthorne said a similar makeover in Australia improved sales and foot traffic.

He emphasised that sales growth would depend on the performance for individual stores.

The makeover includes new imagery and different store layouts to make outlets more attractive to a range of different customers.

The chain’s bolted-down plastic chairs will be replaced with free-standing furniture, including couches.

Around 80 per cent of McDonald’s restaurants in New Zealand are owned by franchisees who pay a rental for their properties as well as royalties on sales.

Franchise owners will pay for fittings for much of the makeover, although they will be financed for the capital outlay by McDonald’s.

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