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How a Frenchman is reviving McDonald’s in Europe
A. 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.
B. 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.
C. 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.
D. 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.
E. 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.
F. To stay in touch with local needs and preferences, McDonald’s employs
local bosses as much as possible. A Russian is running McDonald’s in Russia,
though a Serb is in charge of Germany. The group buys mainly from local
suppliers. Four-fifths of its supplies in France come from local farmers, for
example. (Some of the French farmers who campaigned against the company in the
late 1990s subsequently discovered that it was, in fact, buying their produce.)
And it hires celebrities such as Heidi Klum, a German model, as local brand
ambassadors.
G. In his previous job Mr Hennequin established a “design studio” in France
to spruce up his company’s drab restaurants and adapt the interior to local
tastes. The studio is now masterminding improvements everywhere in Europe. He
also set up a “food studio”, where cooks devise new recipes in response to local
trends.
H. Given France’s reputation as the most anti-American country in Europe, it
seems odd that McDonald’s revival in Europe is being led by a Frenchman, using
ideas cooked up in the French market. But France is in fact the company’s most
profitable market after America. The market where McDonald’s is weakest in
Europe is not France, but Britain.
I. “Fixing Britain should be his priority,” says David Palmer, a restaurant
analyst at UBS. Almost two-thirds of the 1,214 McDonald’s restaurants in Britain
are company-owned, compared with 40% in Europe and 15% in America. The company
suffers from the volatility of sales at its own restaurants, but can rely on
steady income from franchisees. So it should sell as many underperforming
outlets as possible, says Mr Palmer.
J. M.Mark Wiltamuth, an analyst at Morgan Stanley, estimates that European
company-owned restaurants’ margins will increase slightly to 16.4% in 2007. This
is still less than in the late 1990s and below America’s 18-19% today. But it is
much better than before Mr Hennequin’s reign. He is already being tipped as the
first European candidate for the group’s top job in Illinois. Nobody would call
that a McJob.
Notes to Reading Passage 1
1.sterling高質量的
e.g. He has many sterling qualities. 他身上有許多優秀的品質。
2. menial 不體面的, 乏味的(工作、職業)
3. spruce up打扮整齊、漂亮、裝飾
4. mastermind指揮、謀劃(一個計劃或活動)
e.g. The police know who masterminded the robbery.警察知道是誰策劃了那次搶劫。
5. underperform表現不佳表現出低于標準的工作水平、企業出現虧本
Questions 1-6
Do the following statements reflect the claims of the writer in Reading
Passage 1?
Write your answer in Boxes 1-6 on your answer sheet.
TRUE if the statement reflects the claims of the writer
FALSE if the statement contradicts the claims of the writer
NOT GIVEN if it is impossible to say what the writer thinks about this
1. McDonald was showing the sign of recovery in all European countries except
France after Denis Hennequin took office as the boss of Euro-markets.
2. Starting from last year, detailed labels are put on McDonald’s packaging
and detailed information is also printed on tray-liners.
3. France is said to be the most anti-American country in Europe, but the
ideas of the “open door” visiting days and “McPassport” are invented in the
French market.
4. Britain possesses the weakest McDonald market among European countries and
approximately 1214 McDonald’s restaurants are company-owned.
5. According to David Palmer, a restaurant analyst at UBS, David Hennequin
should treat the problem about McDonald in Britain as the most important
thing.
6. David Palmer suggested that the management of McDonalod in Italy should
sell as many its outlets which lose money in business as possible for
revival.
Questions 7-10
Choose the appropriate letters A-D and write them in boxes 7-10 on your answe
sheet.
7. The word “sterling” in line 3 of Paragraph A means__________.
A. difficult
B. menial
C. terrible
D. excellent
8. Which of the following statements on the accusation of MacDonald is NOT
TRUE?
A. It tends to make people fat.
B. Its operations are very vague.
C. It tends to exploit workers.
D. It tends to treat animals cruelly.
9. Which of the following measures taken by Denis Hennequin produced
undesired result?
A. “Food Studio” scheme.
B. “Open Door” visitor days.
C. The “McPassport” scheme.
D. The Nutrition Information Initiative.
10. What did Denis Hennequin do so as to respond to local trends?
A. set up a “Food Studio” .
B. established a “Design Studio”.
C. hired celebrities as local brand ambassadors.
D. employed local bosses as much as possible.
Questions 11-14
Complete each of the following statements (Questions 11-14) with words or
number taken from Reading Passage 1.
Write NO MORE THAN THREE WORDS for each answer.
Write your answers in boxes 11-14 on your answer sheet.
11. After January 2004, McDonald was making improvement following a period of
slump in America and Australia, but sales in Europe were ………………………….
12. Business of McDonald in France and Britain was particularly good in
December since customers took to ……………………………..
13. Compared with other countries, France is McDonald’s ………………………. next to
America.
14. ……………………. of McDonald’s restaurants in America are companied–owned and
the figure is much lower than that in Britain.
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