With New Design, McDonald's Aims to Be the New Starbucks

The fast-food chain is undertaking gradual transformation to be less clownish, more coffee shop.

By 2015 McDonald's isn't going to look like the McDonald's you're use to. It'll look like Starbucks, or at least the $1 billion plan. In a front-page story on Monday's USA Today, the 56-year-old fast food chain's stores are undergoing the most massive renovations in their history.

The revamped McDonald's looks like something like this: wooden tables, faux leather chairs, muted colors, and nothing like the famously bright red-and-yellow arches, and the stores' durable but not very comfortable fiberglass tables and steel chairs. Even the restaurants' exteriors are getting earthier tones.

It seems that McDonald's is taking cues from its fast-rising competitor Starbucks, which now ranks No. 3 behind McDonald's and Subway in U.S. sales for chain restaurants.

Starbucks' popularity is partially due to the fact that customers feel comfortable there. They can bring their laptops, sign onto free Wi-Fi and spend an afternoon there, something that just seems weird at McDonald's. Most people go their to get their meal quickly, and without leaving their car.

But the new stores might change that. According to USA Today, the restaurant is redesigning some 800 locations this year and plans to redesign a majority of the franchise's 14,000 stores by 2015. In the process, they might just reinvent the idea of fast food.

Really? McDonalds Facing Lawsuit Over Happy Meals

The Center for Science in Public Interest is giving McDonald's up to 30 days to stop promoting toys with the purchase of their Happy Meals, saying that the company is contributing to the obesity epidemic that the country is dealing with.

As for McDonald's they insist that "getting a toy is just one part of a fun, family experience," said spokesman William Whitman.

"Tempting kids with toys is unfair and deceptive, both to kids who don't understand the concept of advertising and to their parents, who have to put up with nagging children," said Michael Jacobson, executive director of the Center for Science in Public Interest.

My personal opinion is that parents should be responsible and take control of deciding what their children eat. When I was five, If I had the choice, I would have eaten a McDonald's Happy Meal every day, but my parents of course didn't allow this. I can see the Center for Science in Public Interest's side, but cannot agree with their call to action. There are a lot of other fast food chains out there doing the same thing, but because of McDonald's size and history of success they are getting blamed for consumer's great lack of self control.

Starbucks Expands its Seattle's Best Brand to Compete

Starbucks is revamping its Seattle's Best brand by expanding its availability through franchises and a big expansion at other retailers.

The coffee giant is facing increased competition as lower-priced rivals such as: some gas stations like Holiday or Super America and restaurant McDonald's, have copied fancy coffee shop coffees Starbucks made popular, and have priced them significantly lower.

Starbucks just announced that it will increase its availability of Seattle's Best Coffee in 300 AMC Theaters nationwide beginning in July. Seattle's Best will also be offered in Burger Kings across the country by September.

You may have already seen other companies serving Seattle's Best, including Alaska Airlines, Borders bookstores and Royal Caribbean Cruise Lines.

Starbucks and Seattle's Best have been a pair since in 2003.

I think this is a good idea for Starbucks. It would be hard for the Starbucks brand to compete against a company McDonald's, since it would require them to completely change their brand identity to meet those consumers who are buying coffee based on cheaper price. Actually, it would probably hurt Starbucks more if they did do this. However, I believe the Seattle's Best brand can be taken anywhere and can compete against the cheaper priced rivals in the coffee market.