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McDonald's Specialty Coffee Kick

Jan Fields is the confident dynamo behind McDonald's push into specialty coffees. She says
it's ready


by Michael Arndt

Business Week

May 14, 2008

    Thirty years ago, Janice L. Fields was a
    brand new McDonald's crew member in
    Dayton, Ohio, taking orders on the
    evening shift while her husband, an
    enlistee in the U.S. Air Force, took care of
    their three-year-old daughter. Today,
    Fields is chief operating officer of
    McDonald's USA. Working from the old
    office of founder Raymond A. Kroc, she is
    responsible for 13,800 restaurants,
    700,000 employees, and $7.9 billion in
    annual revenue. But once a crew, always
    a crew. So here she is, in front of a TV
    camera for ABC's Nightline, back behind
    the counter and in an apron, grinning and
    serving coffee.

    She's had plenty of reason to feel good.
    Right after Fields was promoted into
upper management as president of McDonald's Central division in 2003—she moved up to national COO in
mid-2006—Big Mac's domestic sales began rising and have been up every quarter since. Over that stretch,
the fast-food chain introduced premium salads and Snack Wraps, began eliminating trans-fats from its menu,
extended hours at more than 90% of its locations, rebuilt 6,500 restaurants, and pocketed record sums: U.S.
operating income totaled $2.84 billion in 2007.

Fields, 52, is now being challenged as never before, however. To grab more of the breakfast market,
McDonald's is adding specialty McCafé coffees, such as cappuccinos and lattes, to all its U.S. sites, a rollout
that should be completed by next May. It is the most disruptive move since McDonald's began serving
breakfast nationwide in 1977, requiring the installation of new machines in the already cramped space near
the drive-through pickup window. Another risk: The complexity of preparing the upscale brews could slow
down service.

Years of test-market trials have convinced Fields the company is ready. As with most chores inside a
McDonald's kitchen, tasks have been broken down to the simplest level, with the equipment handling much of
the work automatically. Crew members need only push a button, for instance, to dispense milk or sweetener in
precise measures. Printed instructions even tell employees how many times to stir in chocolate syrup for a
mocha (12 times). Her bosses think she's done her homework, too. "She's detail-oriented. This fits right into
her strengths," notes McDonald's President Ralph Alvarez.

Though Fields takes her work seriously—she usually clocks in by 6:30 a.m. when she's not traveling—she is
quick to joke about most everything else. In her Oak Brook office are a couple of bright red Ronald McDonald
clown shoes, as company-anniversary mementos. And amid her business and family memorabilia is a
snapshot of her with a half-dozen women franchisees during a break from a company meeting—lined up in
front of a row of urinals. "Life is too short not to have fun," she says with a laugh.

Growing up in Vincennes, Ind., the seventh of eight children, Fields dreamed mostly of becoming a nun. When
she put on her first McDonald's uniform in 1977, she had no intention of turning the job into a career; she just
needed cash. She recalls finishing that first shift in tears, upset over all the rules about how to make french
fries. The next night, she was switched to the cash register and fell in love with interacting with customers. After
that, "I was happy everyday," she says. "I'm still happy 30 years later."

Arndt is a senior correspondent in BusinessWeek's Chicago bureau .
Jan Fields is certain her shops can pour cappuccinos and lattes without slowing
service. Roark Johnson  Photo: Courtesy of Business Week