McDonald's restaurant in a fancy building
Photo by Marcus Ganahl on Unsplash

What If McDonald’s Became More Upscale?

McDonald’s is set to make more than 50 changes to its burgers this year, and since the company seems to be evolving its brand’s language, it might be time to consider a more enhanced image to its name.

For starters, the brand is boosting its burger game. It announced changes to its burger preparation, promising softer buns, perfectly melted cheese, and enhanced flavors from onions cooked with the patties. The Big Mac is seeing an increase in its tangy Mac sauce as well.

Celebrity collaborations also made a comeback last year, and the company continued its tradition of limited-edition launches. New sauces were introduced, popular sandwiches were upgraded, and fan-favorite items made a comeback. Although McDonald’s has done well with these changes so far, the fast-food chain might be poised for even more virility and profit if upgraded with an element of luxury.


Also, if you’ve ever noticed that Coca-Cola tastes better at McDonald’s, you’re actually correct. There’s a science behind those superior sips, and McDonald’s goes to great lengths to ensure its Coke is top-notch. It all starts with meticulous cleaning of the soda fountains using filtered water. Next is the extra step of pre-chilling the filtered water and the Coca-Cola syrup before it hits the fountain dispensers. This ensures a perfect balance of syrup and frozen water when ice is added to your drink. Maintaining cold temperatures is critical to preserving the soda’s carbonation. High carbon dioxide levels are easier to maintain in colder conditions, thereby keeping the soda fizzy for longer.

Furthermore, McDonald’s gets its Coca-Cola syrup delivered in stainless steel tanks, which helps keep the syrup fresh and safeguards it from changes in temperature and air exposure, both of which could alter the flavor. Most other restaurants receive their Coke syrup in plastic bags, a method that doesn’t protect the syrup flavor as effectively as steel tanks. McDonald’s enjoys this luxury of using stainless steel tanks thanks to a special partnership between Ray Kroc, the man behind the golden arches, and Coca-Cola, established as far back as 1955.

Last but not least, the size of the straw also contributes to the enhanced Coke experience at McDonald’s. The straws used by McDonald’s are slightly wider than typical ones, allowing more Coke flavor to reach your taste buds. If this restaurant is only perceived as a cheap fast-food option, why go through all this trouble? Why not find a way to sell Coca-Cola at a higher premium instead?


Another interesting case in point is the idea of a more “upscale” and luxurious McDonald’s restaurant.

Back in 2015, McDonald’s Japan tried a fine dining experiment titled “Restaurant M.” Aimed at celebrating its new “Fresh Mac” summer menu, the usual quick bites associated with McDonald’s turned into a gourmet extravaganza in the Roppongi Hills branch in Tokyo.

The restaurant rolled out a white tablecloth and fancy tableware and opened its doors to 20 lucky individuals chosen from a pool of over 8,300 applicants. McDonald’s teamed up with renowned chef Masayo Waki, who gave a new edge to the menu. The five-course meal unveiled a unique range of dishes, including a Vichyssoise McFry Potato, several kinds of patty pincho, and a salad encapsulated in gelatin. For mains, customers had a choice between the Fresh Mac bacon lettuce burger, Fresh Mac Chicken Filet-O, and the Fresh Mac Filet-O-Fish. The meal ended on a sweet note with a Mixed Berry McFlurry, followed by McDonald’s Premium Roast Coffee.

McDonald’s Australia first pioneered this kind of fine-dining concept in 2013 in eight outlets in the Illawarra region. Customers ordering a Grand Angus, Big Mac, or chicken deluxe meal had the option of having it served on a plate with cutlery. In the same year, McDonald’s hosted a gourmet dinner in New York City where renowned chefs used basic McDonald’s ingredients to create extravagant dishes.

Currently, McDonald’s has several unique and luxurious locations worldwide, such as the 1795 Mansion in New York and a Greek Revival-style house in Freeport, Maine. In Melbourne, Australia, there’s an art deco McDonald’s that was once known as the United Kingdom Hotel. In Rome, Italy, there’s a McDonald’s located by the Spanish Steps, filled with marble and mosaic accents. Orlando, Florida, is home to one of the world’s largest and most entertaining McDonald’s outlets, while a quaint McDonald’s in Yangshuo, China, offers magnificent views of karst peaks and a historic 19th-century town hall in Bray, Ireland, houses a unique McDonald’s branch.

Additionally, a different approach to this fast-food chain arrived in Hong Kong in 2016 called McDonald’s Next, which is an “evolved version of the brand that strives to be ‘modern and progressive,’” according to CNN. Some people refer to it as the world’s fanciest McDonald’s in the world due to its elevated interior design and healthy, gourmet menu.

Although making McDonald’s an entirely luxurious chain of restaurants would go against the very fundamentals of the company, it might do well to have a balance that offers the best of both worlds, upscale and cheap, going against the notion of these factors being mutually exclusive.

Discussion Questions

How would the introduction of premium elements impact the brand image and customer perception of a traditionally low-cost, fast-food chain like McDonald’s?

Considering the meticulous process McDonald’s employs to serve the perfect Coca-Cola, what could be the implications and potential profits of offering this as a premium beverage, and is there a precedence for such a strategy in the beverage sector?

In the context of McDonald’s attempting upscale experiments and unique restaurant locations, how feasible is it for a large-scale fast-food chain to sustainably and successfully operate in such a dualistic model, offering both upscale dining experiences and low-cost fast food? Would this not confuse or dilute its brand identity?

Poll

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BrainTrust

"If McD’s wants to provide an alternate experience, that’s up to them…R&D is always a good thing, but don’t forget the longstanding customer."
Avatar of Allison McCabe

Allison McCabe

Director Retail Technology, enVista


"McDonald’s, the brand, is so ingrained in the public consciousness. An upscale McDonald’s would take away from that brand identity, which customers either love or dislike."
Avatar of John Karolefski

John Karolefski

Editor-in-Chief, CPGmatters


"Could McDonalds branch out from its standard fare and offer something unique in certain cities? Yes. But I wouldn’t tie it to the McDonalds branding or fast-food personality."
Avatar of Dave Wendland

Dave Wendland

Vice President, Strategic RelationsHamacher Resource Group