McDonald's to Give China Restaurants a Makeover

BEIJING-- McDonald's Corp. is aiming to beef up its image in China amid an economic slowdown that could send diners searching for cheaper alternatives.

The Oak Brook, Ill., company is overhauling a number of its China-based stores in places such as Beijing, Shanghai and Guangzhou using a local designer, according to a company statement. It also is launching a new advertising campaign that focuses on Chinese aspirations and it is recruiting more locals to run its franchises in China. McDonald's will also feature basketball star LeBron James in China-focused commercials later this year, the statement said.

McDonald's is airing a three-minute ad that is set to appear Friday, just after the widely watched evening news on state broadcaster China Central Television. WPP PLC's media-buying agency Group M estimates that time slot costs about $131,000.

The move comes as China's economic growth slows. China reported Wednesday that first-quarter growth in the country fell to 7.4% from a year earlier, the lowest level in 18 months, from 7.7% in the fourth quarter. There is little sign that the economy will manage much faster growth in the near term.

Write to Laurie Burkitt at [e-mail] and Julie Jargon at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires