McDonald’s Sales Tumble Again Amid Modern Makeover
Are consumers lovin’ or hatin’ McDonald’s these days? Well, let’s just say they’re lovin’ it less.
McDonald’s announced Tuesday that its global sales fell 1.7 percent last month, including a significant four percent reduction in the United States, a country where it’s accelerating its modern image, and 4.4 percent in Asia, Middle East and Africa. Sales did edge upwards in Europe with 0.7 percent.
The plummeting sales even came as the company launched the much talked about “Pay with lovin’.” This two-week campaign consisted of randomly selected customers paying with different acts of “loving,” such as a fist-bump, hug, dance or calling a loved one and telling them they love them. Marketing gurus lauded the move by averring that McDonald’s connected its brand with a positive emotion than its various deals.
The global fast-food juggernaut did concede that with consumer needs and preferences evolving and shifting its recent performance suggests that it hasn’t kept up with these trends. In other words, McDonald’s needs to embrace change if it wishes to remain a dominant – and relevant – force in the food industry.
Indeed, over the past couple of years, consumers, especially the millennial (18 to 34) demographic, have been seeking out healthier alternative. Also, there has been a substantial influx of competitors as of late, including those very same healthier options that offer more wholesome ingredients.
Moving forward, McDonald’s said that its primary objective is to transform into “a modern, progressive burger company.”
“Our customers want food that they feel great about eating — all the way from the farm to the restaurant — and these moves take a step toward better delivering on those expectations,” McDonald’s U.S. president Mike Andres in a statement.
One of the measures to take McDonald’s to the next level was to replace CEO Don Thompson with Steve Easterbrook, who served as its chief brand officer.
Another recent introduction was the limited rollout of the company’s “Create Your Taste” program that will be seen in about 2,000 restaurants throughout the year. This endeavor allows customers to customize their orders by tapping a touch screen.
Furthermore, McDonad’s announced last week it would minimize its usage of antibiotics in chicken over the course of the next two years. Also, it may make its recipes simpler to construct in order to eliminate the vast number of preservatives in many of its items.
“Our customers want food that they feel great about eating — all the way from the farm to the restaurant — and these moves take a step toward better delivering on those expectations,” Andres said in a separate statement.
McDonald’s is certainly making the effort to revamp its brand and showcase itself as healthy.