McDonald''s Romania restaurant chain last year derived net income worth 7 million RON (2 million euros), a value the company''s officials expect to double in 2006.
The company saw turnover worth 181 million RON (50 million euros) in 2005, about 20% higher compared with the figure posted in the previous year.
Net profit registered by McDonald''s Romania restaurant chain rose from 22.2 thousand euros to 2 million euros last year. The company now operates at a profit margin of 3.8%.
The positive trend of financial results was made possible by advertising campaigns, the diversification of the product portfolio, as well as the market reaching maturity.
According to Cristian Savu, the company''s communication manager, McDonald''s Romania had been in the red until 2004.
"Year 2004 was a kind of break-even point," he says.
"It is only natural that the profit should grow to such an extent given it started from such a small value. We will obviously no longer enjoy such growth this year. We can say that starting 2006, we are in a situation of normality," Savu also added.
McDonald''s chain has been operating on the domestic market since 1995.
"It is about the market reaching maturity, about a visible yet real increase in the purchasing power and there was also the flat tax that helped us," states Cristian Savu.
He says that McDonald''s strategy for last year, as well as for this year, is related to the changing of the interior design of its 51 restaurants. To redecorate each of these restaurants, approximately 200,000 euros will be invested, and the move is part of a long-term plan, explains the official.
"We are permanently concerned with the interior and exterior design of our restaurants and about the facilities we are offering. In less than a month, we will also have plasma screens in each outlet, broadcasting programmes adjusted to the profile of our customers," he added.
McDonald''s will introduce more expensive furniture and leather sofas. The furniture and related accessories will be bought from Romania, explains Savu.
This year, the company is carrying out a pilot-programme in order to introduce of a higher number of coffee-based products.
"We''ve noticed this coffee consumption-related trend domestically and internationally," says the official of McDonald''s Romania. andreea.groenendijk@zf.ro
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