All the cool kids go to McDonalds, according to McDonalds

The ADgenda: nobody tapes their face to dogs.

Since 2008, McDonald's UK has been working on an image overhaul with advertising leaders Leo Burnett, a company whose slogan is, “We don't make brands famous, we make them popular”. The ad agency had a difficult job on its hands; poor old McDonald's had a rough ride with PR in the noughties; first it was linked with political corruption, then SuperSize Me showed a man's body slowly decomposing on a diet of Maccy D's, and all the time those environmentalists kept harping on about that darned rainforest. Leo Burnett's first job was to run a set of ads to show that, contrary to popular belief, McDonalds's is actually one of the UK's leading health and organic food retailers (come on guys, they sell apples).

This health campaign, combined with the crowd-sourced "We All Make The Games" campaign, have acted together to (according to the Leo Burnett website) "double trust" in the brand. But, not content with this, in the past twelve months the Burnett ad team have gone further, launching a raft of adverts aimed to make Maccer's the restaurant de choix for the hip, young professional. Part of this, involves the promotion of McDonald's “freshly ground coffee” range.

"Coffee and Conversation”, which first aired last year, shows us a series of vignettes that demonstrate the kinds of every-day conversations people have round a cup of java à la McDo. For example, the ad begins with a disgruntled thirty-something telling her friend “and then he taped his face to the dog”, ; “I hear ya sister'', the viewer will think, “if I had a penny for every time my Pete taped his face to the dog...”. Another scene shows a sassy London gal with her mates trying desperately to de-code her boyfriend's mindbogglingly cryptic text -"C u l8a". “What does that mean?!”, she cries, her mates are hysterically excited about the whole thing, but also unable to elucidate the mystery.

Indeed, so at home is the young professional in Mcdonald's, that one trendy young man chooses it as the place to start his relationship, and an attractive young blonde, deems it an appropriate place to end hers; we zoom in on a drop of coffee creeping down her cup, as she splutters, “I just feel differently about you now”. The drop of Maccers coffee, in a very contained kind of pathetic fallacy, – I think – is meant to represent the anguish of the young blonde. In an even sadder scene, a dead-eyed thirty-something in a suit tells his indifferent colleagues “I talked about staplers for an hour today”.

Leo Burnett reaches out to the young professional again in 'First Day', an ad in which a young man starts a new job in a funky modern glass building. His new boss bombards him with information and acronyms, she even follows him into the men's toilets to tell him he's drying his hands wrong. Overwhelmed, he hobbles over to McDonalds's on his lunch break, as he orders a Big Mac the world is put to rights; he proceeds to flirt with his burger, before turning his attentions to the colleague he's made sexy eyes with earlier, who also lunches under the Golden Arches. Romance is not dead.

The ad, "He's Happy", again, pushes McDonalds's as a place of sanctuary for the hot young boy- about- town. A plucky twenty-something leaves his city flat and sings a chirpy rendition of 'The street where you live' from My Fair Lady; he smiles at passers-by and winks at foxy florists as he goes. At the end of the ad it is revealed that the cause of his light mood and public singing is not a lovely lady, but a double big mac.

Now, It is not that these situations are so very implausible, romances may have started in McDonald's, people probably do have depressing conversations about their work in the restaurant, and many people on their first day at a new job might choose to eat at McDonalds's, for its grim familiarity if nothing else. But the McDonalds's in question would not be the soft-lit, soft-focus, everyone is under 35 and gorgeous one, created by Burnett's team; in real McDonalds's, the lights are too bright, there is invariably at least one screaming child in the vicinity, and olfactory perception (conveniently absent in a TV ad) is filled with the smell of chip fat mixed with disinfectant. That is the reality; getting dumped in McDonalds's would be hideously depressing, having lunch there every day would give you permanent afternoon indigestion.

Oh, and take note Burnett; nobody tapes their face to dogs.

McDonald's UK has been working on an image overhaul. Photograph: Getty Images
Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR