McDonald's European Makeover

And with the franchisees bearing most of the costs of the renovation, the move is not a burden on McDonald's balance sheet.

Heinritzi said the renovation cost 750,000 euros ($1 million) and should pay for itself in four to six years. Costs have gone up with a fancier restaurant, but sales are up too.

Hennequin, a Frenchman, came up with the idea of combining ambience and convenience when he took over McDonald's operations in France in 1996.

Unlike in America, Europeans think eating a meal involves sitting down and taking their time.

"To make us a real destination, we are also looking into new services like free WiFi Internet access, cash-less restaurants and McCafes," Hennequin said over lunch in Munich, where McDonald's was showcasing its European operations.

The lunch featured the company's summer European menu, which included le P'tit Moutarde burger from France.

McDonald's plans to increase the number of McCafes, which are like small cafes within a restaurant, to more than 1,500 by the end of this year from about 1,000 at the start of 2007. Nearly all of them will be in Europe or Australia.

The reimaging idea is catching on in America too, where McDonald's has already renovated about half of its 13,000 restaurants. But the drive-through, fast-food culture of the Americans has led to a simpler style of renovations with fewer McCafes.

"The European concept is being transported, but it is adapting to the U.S. market," a McDonald's spokeswoman said. "In Europe we also want to be a part of the customer's lifestyle."

In Europe, where the population is ageing, McDonald's hopes its cafes and more comfortable decor will attract older people. But during a recent visit to the restaurant here, nearly all the 30-odd customers were either teenagers, college students or young families.