McDonald’s just posted the worst sales decline in a decade.
The brand faces competition from fast-casual chains like Chipotle and Panera Bread. Results also show that young people, millennials and children, are rejecting the brand for healthier, fresher food.
But McDonald’s isn’t going down without a fight.
Here are some drastic changes the brand is making to improve business.
1. Changing up the menu.
McDonald’s is testing customisable burgers that can be topped with guacamole, bacon, or tortilla chips. This nod to Chipotle’s strategy, where customers build burritos to their exact specifications.
In a bid to appeal to millennials last year, the brand introduced the McWrap. The wrap has between 360 and 600 calories and comes stuffed with chicken, veggies, cheese, and sauce.
McDonald’s hopes that customisation and healthier options will bring in a younger crowd.
But the menu will also get smaller.
McDonald’s CEO Don Thompson has said the company is going to start paring down on items. The chain’s offerings have expanded by 70% since 2007, which has contributed to an overwhelmed staff and longer wait times.
Some of the recent menu items to go are the Chicken Selects and Angus Third Pounders.
2. Improving customer service.
In addition to trimming the menu, McDonald’s is working on speeding up drive-thru wait times.
The company is redesigning kitchens to be more efficient for workers and testing a mobile ordering app that allows customers to place orders from their phones and pick up in restaurants.
Thompson said that the company was sending corporate representatives in for a “service reset.” This could include adding more workers and assigning new tasks to existing ones
3. Revamping marketing.
Thompson is aware that many view McDonald’s as unhealthy junk food. This problem has been exacerbated by a food factory scandal in China. To improve public perception of the company, McDonald’s is doing a global audit of the marketing department. Thompson said he planned to make new internal hires.
“We are also strengthening our creative messages by placing greater emphasis on the quality of our food and again re-establishing the emotional connection that our customers associate with the McDonald’s experience,” Thompson said.
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