McDonald's debates move from fast food to retail

McDonald'S revealed last week that it could extend its empire from fast food to retail.

Speaking at the annual Institute of Grocery Distribution convention in London, Paul Preston, president of McDonald's in the UK, said that links with other retailers, especially toy and children's wear shops, were a possibility.

But he stressed: "It would be business partnerships. They are the toy experts, we are the food experts."

Mr Preston added that the differences between retailing and catering were becoming increasingly blurred. "We once thought our competition was other fast food operators and fish and chip shops," he said. Now the competition included supermarkets, petrol stations and pubs.

Mr Preston said that McDonald's was attracting 1.5 million customers a week, but more could be done to attract the remaining 55 million people in the UK - "although I would draw the line at selling McDonald's branded petrol".