Burger Chain Plans Two Swiss Hotels
C H I C A G O, Nov. 17, 2000 -- The rooms are affordable, thecuisine is American casual, and be sure to tip the clown namedRonald McDonald carrying the bags to your room.
The Swiss arm of McDonald’s Corp., known for its frenchfries and Big Macs, recently unveiled plans to open twofour-star Golden Arch Hotels by next spring, a first for theworld’s largest restaurant chain. The first two are scheduled to open in Switzerland. The Golden Arch Zurich Airport and the Golden Arch Lully A-1, whose names reflect their locations (the latter along a new stretch of highway), will naturally adjoin McDonald’s eateries.
Big Macs and Internet Access
McDonald’s Suisse Holding SA, which has 116 restaurants andis headed up by Chairman and Chief Executive Urs Hammer, willopen the hotels in an effort to build the hamburger brand andattract new customers.
Amenities at the hotels, aimed at business travelers duringthe week and families on weekends, will include adjustablebeds, high-speed Internet access, a child-care center andsoundproof walls.
In the tradition of McDonald’s restaurants that aim tooffer diners an affordable meal, Golden Arch hotel rooms aremoderately priced with rates ranging from 154 to 189 Swissfrancs, or about $86 to $106.
McDonald’s said it will watch the progress of the hotels,but right now there are no plans for a widespread launch ofMcDonald’s-branded hotels, a U.S.-based company spokesman saidtoday.
“Each of the 100 countries where we operate is free tounleash innovation and new ideas to develop the brand,” said WaltRiker, a company spokesman. “This is an individual,innovative approach by one company in our system. We’ll seewhat happens. The first thing is to get them [the hotels] openand have people coming in this spring.”
More Than Just Hamburgers
Hammer, like the company’s restaurant operators in theUnited States, can make menu additions or try novel ways to build theirbusiness and draw customers. For example Hammer has putMcDonald’s food on Swiss trains and airplanes. In the United States,some McDonald’s serve fresh-baked cookies, have in-store icecream parlors, Internet access or crystal chandeliers and oakpaneling.
In recent years, slowing sales have forced Oak Brook,Ill.-based McDonald’s to search for ways to grow itsbusiness without cannibalizing sales at its 23,000 hamburgerrestaurants located in 110 countries.
Year-to-date U.S. sales through Oct. 31 at company-ownedand franchised restaurants were up a modest 3 percent to about$16.4 billion, while year-to-date sales in Europe were down 2percent at $7.84 billion, hit by a strong U.S. dollar.
McDonald’s efforts to grow non-hamburger sales in Europeinclude the operation of 40 United Kingdom-based Aroma Cafes,which sell cold sandwiches and coffee.
In the United States, McDonald’s operates Chipotle Mexican Grill,Boston Market and Donatos Pizza restaurants. These otherbrands, however, represent a only very small part of the burgerchain’s sales. In 1999, non-hamburger restaurants had sales of$91 million. That compares with McDonald’s total sales of $38.5billion.
McDonald’s is also expected to test three diner-stylerestaurants in its Western U.S. division next year.
Shares of McDonald’s were up 1/16 at $32-3/4. The stocknotched a 2-year low on Sept. 14 after the company warned thatthe effects of a strong U.S. dollar may cut 2000 earnings. Thestock has a 52-week high of $48-1/8.