As an American company doing business in Europe, McDonald's faces challenges as anti-Americanism increases in the wake of the Iraq war. Unlike Coke or Marlboro--two other popular American brands in Europe--McDonald's is a destination as well as a brand and is therefore subject to demonstrations and protests. As the European economy struggles, McDonald's also is affected since Europeans may decide to forego eating outside the home. McDonald's has done well adapting to the different social climate in Europe, adding beer to the menu in Germany and more chicken options to the menu in France. The company largely pioneered the American concept of fast food in Europe and has been successful at converting European customers to the concept. On a technological level, McDonald's is testing the idea of using debit and credit cards in its American stores, something that it will likely expand to Europe, and the company is also testing the idea of creating wireless "hot spots" where consumers can connect to the Internet. Wireless technology is already popular in Europe and the introduction of wireless connectivity to the Internet from McDonald's could prove a strong marketing tool.
There are competitive pressures facing McDonald's in Europe. American companies, such as Pizza Hut, and European companies have long competed against McDonald's. New entrants come into the market on a regular basis, and substitute products are readily available. Not only can Europeans find other hamburgers, but other types of fast food (such as take-away curry in England) offer acceptable substitutes as well. Buyers have relatively little bargaining power (prices are non-negotiable at the retail level), and suppliers also are reluctant to use their bargaining power. Supplier reluctance is due to the fact that McDonald's uses local suppliers and can be a significant customer for local agricultural goods. There is intense rivalry
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