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McDonald's Experiments Work Well In Europe

Denis Hennequin, in charge of all of McDonald's restaurants in Europe, has a three-pronged strategy: Improve the experience of customers and employees; make sure restaurants adapt to local communities; and be more transparent about how McDonald's does business.

"I'm changing the story," Hennequin says. "We've got to be loyal to our roots, we have to be affordable, we have to be convenient ... but we have to add new dimensions." These dimensions include putting iPods in restaurants in France, so people can sit and listen to music, making better coffee from beans grown ethically and introducing a "McPassport," so young staff members can work at any restaurant in Europe.

The changes seem to be working. Sales at McDonald's European franchises are growing faster than in other regions. In January, Europe (which accounts for about 36% of annual profit) reported quarterly sales growth of 7.3% against 5.9% in the United States.

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