McDonald’s US business is continuing to slide.
The fast food chain is struggling with declining sales, fast-casual competitors, and unrest from workers and franchisees. This week, the company announced US sales fell 3.3% last quarter.
McDonald’s CEO Don Thompson said that the brand has a strong turnaround plan in place.
“I am confident in our ability to regain momentum in the US given the actions that we’re taking and the pace at which we’re moving,” Thompson told investors earlier this week.
He outlined the brand’s strategy for saving its US business.
Make menus more local.
McDonald’s is working to tailor menu items and promotions for different regional markets.
Thompson says that in many cases, franchisees will have the power to decide which items and promotions they offer in restaurants.
Offering a more tailored menu could help bring in new customers who appreciate that McDonald’s is catering to their tastes. It could also help ease tensions from franchisees who say that the company’s constant new menu items are creating financial and operational challenges.
Get rid of some menu items.
McDonald’s is planning on getting rid of some menu items in January.
The current menu, which has grown 70% since 2007, has been cited as the reason for long wait times and declining customer service.
Paring down the menu will “better highlight customers’ favourites and to make the experience faster and easier for our customers and our crew,” Thompson said.
Having fewer menu items could also lead to a better work environment and higher employee retention.
Add personalisation options.
Consumers have been eager to personalise their food, as evidenced by the popularity of fast-casual chains like Five Guys and Chipotle.
McDonald’s has been testing a concept that lets customers use tablets to build their own burgers with toppings like guacamole, bacon, or guacamole.
The brand is also offering consumers the option to upgrade their breakfast sandwiches with egg whites or white cheddar.
McDonald’s is fighting back against accusations that its food is unhealthy and overly processed.
The company recently released a video starring former “MythBusters” co-host Grant Imahara. He tours a meat factory in California that produces beef patties.
“Conveying the facts and adjusting misperceptions about the freshness, quality and integrity of our ingredients appeals to our customers and supports the work we’re doing to offer greater menu choice,” Thompson said.
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