McDonald’s Studies Brand Extensions

McDonald’s Corp. is considering in-store kiosks and mini-shops as ways to expand its U.S. business beyond the core fast-food restaurant nucleus, executives said Thursday.

One proposal is a dessert kiosk called McTreat that has been successful in Latin America. Another is a mini-stop called McSnack, which would offer a limited McDonald’s menu in airports and malls.

“I’m very excited about the experimentation,” Jack Greenberg, chairman and chief executive, said at McDonald’s annual meeting in Oak Brook, Ill. “But time will tell which of these ideas are big ideas.”

McDonald’s first opened a McTreat kiosk about 10 years ago in a shopping center in Brazil. The idea was to attract customers to a McDonald’s restaurant in the mall by selling ice cream cones, sundaes and water. There are now about 600 throughout Latin America.

The company is testing McTreat in the Woodfield Mall in Schaumburg, Ill., and McSnack at an undisclosed U.S. site.

Also being evaluated is a McCafe gourmet coffee shop, recently opened in Chicago adjacent to a McDonald’s restaurant. It carries cappuccino, cafe latte, desserts and pastries and follows a successful international run.