McDonalds to revamp another 200 stores

McDonald's is to accelerate the makeover of its UK restaurants in a bid to boost sales, which have flagged over the past five years.

To date, more than 100 UK stores have benefited from a more comfortable and contemporary design, which includes armchairs, sofas, modern lighting and wireless internet access.

Now the group intends to update another 200 restaurants over the next five years, with the investment for 2006 standing at £20m.

Europe's 6,300 McDonald's restaurants have already received a makeover and have seen a sales recovery in recent months.

Denis Hennequin, president of McDonald's Europe, said: "We've stopped the erosion, now we have to build it up again."

The UK arm also intends to refranchise hundreds of its stores to help new and existing franchisees drive the business forward, although the details are yet to be finalised.

A spokeswoman said recent additions including salads, deli sandwiches and breakfasts have helped attract a wider variety of customers to the restaurants.

She added that the group had outperformed its UK rivals in 2005.

By Angela Frewin

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