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How a Frenchman is reviving McDonalds in Europe
A. When Denis Hennequin took over as the European boss of McDonalds in January 2004, the worlds 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 groups 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 groups 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 Hennequins recipe for revival is to be more open about his companys operations, to be locally relevant, and to improve the experience of visiting his 6,400 restaurants. McDonalds 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.
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