Bigger Bite of Britain for McDonald's

Paul Preston, who started out managing McDonald's first UK restaurant in Woolwich 21 years ago, and is now the company's president and chief executive officer, failed even to mention the beef crisis in his annual review. He spoke instead of a 'record-breaking year' in 1995.

With after-tax profits roaring ahead at 53 per cent to £341 million, and plans to add a further 100 outlets to the current 650 in 1996, the McDonaldisation of the UK appears to be an unstoppable rollercoaster.

Mike Love, McDonald's head of communications, explained that the Golden Arches had not remained unscathed by the crisis in British beef: "Like everyone else, we are experiencing an affect on our sales, and beef sales are not anything like they were before 20 March". But he added:"We see this as term, and are confident it will be resolved soon."

Expansion is being stepped up, he says, because the demand is there.

Vegetarians and fast food critics, who allowed themselves a sliver schadenfraude when the BSE crisis broke, are unlikely to be whooping for joy at the news. But even Tory die-hards incensed by the company's stance on British beef will not fail to notice its contribution to employment.

If you include 7,500 people on the payroll of McDonald's franchises ,the burger chain employs 44,500 in the UK. It estimates that 5,000 new jobs will be created each year for at least the next five years, which will add up to almost 70,000 by the year 2001 - overtaking such giants as Marks & Spencer and British Gas.

With 650 restaurants, the company reckons ther is one for every 90,000 people in the UK, and says this will come down to one every 50,000 by the end of the century - and that number could easily double. After all, the United States has a Big Mac parlour for every 25,000 of its citizens and is thought to be far from saturated.

Meanwhile, the Chicken McNugget is reaching inot every area of our waking lives. Breaking out of its traditional stronghold in High Streets and shopping centres, McDonald's has been making deals enabling it to start up elsewhere.

Last year, it initiated an agreement with Welcome Break, which saw its first two restaurants open in motorway service areas. A separate deal with Stena has put a seaborne McDonald's aboard the high speed sea catamaran plying between Holyhead and Dun Laoghaire.

Another possibility is football grounds. The first McDonald's opened in a stadium last year at Anfield, home of Liverpool FC and Love says more are likely to follow. As a sponsor of the Premier League, the chain came up with the idea of introducing family enclosures.

This gives it a natural entree to Premiership clubs, and Love says discussions are taking place with several.

Love does not reject the idea outright, and simply says: "That has been discussed in the past and it's sure to be suggested again."