McDonald's Romania, which operates one of the largest restaurant chains on the market, targets a net profit of over 4 million euros for this year, double against 2005.
For the first six months of the year, the company posted turnover worth 29.6 million euros and a net profit of 1.5 million euros, seeing its sales rising by over 20%, against the corresponding period of last year.
"For this year, we estimate a rise of over 15-20% in turnover, as well, given the increase in sales amid product diversification, the price cuts for hamburgers and the restaurant modernisation, both in Bucharest and in the rest of the country. Moreover, in the first half of the year, the number of our customers rose by 25%," Marian Alecu, general manager of McDonald's Romania, who also coordinates the chain's operations in the Republic of Moldova and Bulgaria, told ZF.
This is the second year the company makes profit, after having posted losses until 2004. Last year, McDonald's Romania posted turnover worth 50 million euros and profit amounting to 2 million euros. McDonald's development strategy aims to carry on the investments in restaurants' modernisation, as well as to open new outlets, a project started in 2004.
"We will begin with the restaurants in big cities and we intend to complete modernisation for all the 52 locations in the network in three to four years. We already started with the largest restaurants in Bucharest, while the one from Timisoara is already completed," says Alecu.
The furniture and accessories used to renovate the restaurants will be purchased from Romania, except for the kitchen furniture, which will be bought from abroad, from the company with which the worldwide McDonald's subsidiaries collaborate.
"New couches have already been brought to the outlet located in Constantin Brancoveanu area, in Bucharest. Also, as of next year, wireless Internet systems will be introduced in restaurants, so that all of our clients will have free Internet access," adds Alecu.
The costs for renovating an outlet range between 80,000 euros and 550,000 euros, the amount necessary to the work for the restaurant in Timisoara. The costs are implicitly higher for opening new outlets, amounting to approximately 1m euros. As for the strategies regarding the profit optimisation, Alecu said the chain buys its stock of bread, salad, meat and milk from the local market, whereas it imports the cheese, potatoes, sauces or fish.
At the same time, as of next year, price cuts will be applied to other products too, part of the strategy to ensure customer loyalty.
A pilot-programme started this year, aimed to introduce more coffee-based products in restaurants.
"We noticed a rising demand for coffee, both on the local market, as well as worldwide. Moreover, the consumers became more and more demanding and want various types of coffee. The quality of the coffee we offer now is highly superior to the one we offered before," states Marian Alecu.
McDonald's in Romania
Entered the market in 1995
Operates 52 restaurants
Posted 50m euro turnover and 2m euro profit in 2005
Expects net profit to at least double to over 4m euros in 2006
The number of customers went up 25% in first six months of 2006 compared with the same time last year
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