The transformation is part of McDonald's Corp.'s effort to satisfy consumers' growing appetite for quick and casual dining that's a notch above its traditional fare.

"Health and diet trends are having a big effect on the food industry, from snacks to fast food, all the way through," said Amy Greene, an analyst with Avondale Partners in Nashville, Tenn.

The casual dining approach typically offers limited service and a pay-first system, with average lunch checks of $6 to $9 compared with $5 for fast food.

Sales for casual dining are expected to grow at an annual rate of 10 percent to 15 percent, compared with 5 percent for the fast food industry, according to Technomic, a Chicago-based restaurant consulting company.

"It appears that consumers are looking for something better," said Ron Paul, president of Technomic.

This is not McDonald's first step into quick casual dining. Last year, it started testing a white meat Chicken McNugget, Fruitopia beverages and spiffier employee uniforms at some restaurants.

Along with its well-known McNuggets and Big Macs, the renovated McDonald's will serve a bistro menu that includes eight new sandwiches such as a chicken panini, a turkey wrap and a Philly cheese steak.

Bistro sandwiches will cost around $4.75 and can be bought as a meal with french fries and a drink. The restaurant also will offer new desserts, including cheesecake.

"I have to remind myself that this is McDonald's," said Ron Lam, 16, trying out a grilled veggie panini at a Bistro Gourmet in Evesham, N.J.

Although all customers will order from the same place, those who order from the bistro menu will take a number and be served at a table with nondisposable plates and silverware. Initially, the bistro menu will not be available to drive-through customers.

"We're discovering that people are willing to pay more for this concept," said Mark Heinz, owner of the McDonald's franchise in Evesham. "They're even willing to wait."

McDonald's is attempting to tap into a market that's being catered to now by companies such as Panera Bread.

"People want real food," said Paul Cherwien, operating partner with American Bread, a Pennsylvania-based Panera Bread franchisee. "They perceive fast food as synthetic and it's got preservatives, and ours doesn't."

Cherwien called McDonald's new concept a "good move."

"It's something that is going to increase their market share. But it's still McDonald's. It doesn't have a full bakery, the fresh breads, the bagels, the sweets. We're still different."

Scott Hume, executive managing editor of Restaurants and Institutions, a trade publication, said the quick, casual dining appeals to baby boomers.