011105 McDonald's Increasing U.S. Quality Measures

Oak Brook, IL - McDonald's Corp. said it will review its some 13,000 U.S. restaurants for quality and service next year and take ``appropriate measures'' if operators fail to make the grade.

The move is part of broader U.S. initiatives designed to turn around declines in service and jump-start flagging sales, said Mike Roberts, head of McDonald's U.S. business, during a presentation to analysts at the company's Oak Brook, Illinois headquarters.

``Beginning Jan. 1, 2002, all restaurants, company-operated and franchised as well, will be evaluated. The initial focus will be to create a baseline to identify opportunities to improve QSE (quality, service and excellence) in every restaurant,'' Roberts said. "We will help owner/operators and managers achieve this by providing them the tools and training necessary to do so.

``This evaluation is not intended to reduce the number of owner/operators,'' Roberts said. ``However, if these efforts do not result in a sustained improvement in a restaurant's QSE to our customers, we will take appropriate action.''

Analysts have speculated that McDonald's U.S. restructuring would include a reduction in its franchisee base. However, when the company disclosed U.S. plans last week, it said there were no plans to reduce operators.

McDonald's is redeploying more than $50 million annually to help improve operations in its U.S. restaurants. The company will add roughly 350 new U.S. restaurants next year.

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