Innovation Under The Golden Arches - What is McDonald's Up To?

Idris Mootee often spots trends in innovation that have somehow have ended up under the radar of the mainstream media. His recent piece, McDonald's innovation in Europe, caught my eye because this latest move by McDonald's is less an iterative change or a nod to cultural differences than a wholesale rethinking of their overseas business and perhaps their worldwide business model.

What McDonald's is doing is (finally) catering specifically to the tastes of the countries in which they operate by offering such staples as porridge for breakfast in the U.K. and soup in France. Denis Hennequin, president of McDonald's Europe, the first non-American to hold the post, is behind all of these new innovative ideas and he has his chefs in Munich cooking up even more to come for the 41 European countries McDonald's Europe serves.

One wonders if this is a reaction to the increasingly skeptical way in which those around the world view all things American. Where once The USA was the golden land and all things American were lapped up with enthusiasm, a confluence of events in recent years has led to a healthier view of America and American companies' role in world affairs - that is as a player, not necessarily THE player.

Or perhaps the alarming rate of obesity with its loose links to consumption of fast food has provided the wake-up call. Either way, we're seeing fast food chains innovate in a variety of ways to combat this change in worldwide eating habits, competitive pressures and a recessionary climate.

While fast food chains in the US struggle with consumers tightening their pocketbooks, overseas McDonalds is taking a more innovative approach and perhaps they are once again leading the pack.

... the whole fast food industry is ripe for a complete makeover, not a botox job. It needs to redefine its customer experiences and take a hard look at what "fast food" means. Fast food doesn't need to be "junk food". I think everyone in the industry better start looking at what is needed to transform this industry.

In other ways, McDonalds is bringing a new customer experience to the fast food customer, though, perhaps lagging a bit behind popular chains like Starbucks. While fast food has long been a staple of budget minded young people. McDonalds is just now testing wireless internet access and linger-friendly environments with comfy seating and larger tables. Could McDonalds replace Starbucks as the "office away from the office" for the budget minded set?

Whether all of McDonalds new innovations take hold remains to be seen. The various scenarios being tested seem to focus on two trends - targeting and addressing the needs of a younger market... one more wired and more health conscious; and integrating McDonalds more into the culture of the countries in which it operates. Both are tried and true strategies, so in that way, the approach is not innovative. But as I have mentioned before, innovation isn't necessarily about "new to the world" inventions, but often is achieved by applying existing knowledge in a new way.