Fast-food chain McDonald's is closing 25 UK branches to improve profits after failing to win over customers with its healthier options.
The company said most of the closures would be older "high street" restaurants and also announced plans to turn 50 of its outlets into franchises.
McDonald's annual accounts showed that poor UK sales were compromising its European figures.
The firm said its UK operations were "experiencing a highly competitive informal eating-out market and low consumer-confidence levels".
The "UK remained a challenging marketplace and our efforts to gain traction in this market will take time," it claimed.
McDonald's introduced healthier menus, store refurbishments and a new logo as part of its global "Plan to Win" revitalisation strategy in 2003.
But it's new "I'm lovin' it" slogan has failed to attract customers in the UK as much as it has in many parts of the world.
The UK closures will cost the firm £23m ($40m) in the first quarter of 2006.
McDonald's has some 1,250 restaurants in the UK, 63 per cent of which are company-owned while the rest operate under franchise.
A spokeswoman for the company said she it would be focusing on choosing the right store-format for the right locations and opening more branches away from the High Street, such as the restaurant opened last week at Paddington Station in London.
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