McDonalds To Trim Menu To Counter Sales Slump
By Christine Kern, contributing writer
Company to change service model to meet needs of different types of customers
As part of an effort to counter the worst sales slump in over a decade, McDonald’s Corp. has announced that it will trim eight items and five extra value meals from its U.S. menu as a way to speed up service, according to Bloomberg. Execs also explained that the changes were geared to meeting the new landscape of quick-service customers.
Mike Andres, group president for McDonald’s U.S. unit, speaking at a meeting with investors at the company’s headquarters in Oak Brook, Illinois, said that the new menu would be introduced in January. The company has not identified which specific menu items will be eliminated, though did Andres say that some items in the McWraps line may be cut.
“It’s not significant in terms of percentage,” Andres said. “It is significant in terms of the impact on the back of the line.”
McDonald’s has also been battling falling sales with a new and unusual commercial campaign that “comes clean” about their products and ingredients.
U.S. same-store sales for the fast-food giant fell 4.6 percent in November, the biggest drop since 2001. It also marked the 12th straight month without growth in McDonald’s home market, of more than 14,000 restaurants.
“We have to very careful with how we address the menu,” Andres said. “Our destination is a modern, progressive burger and breakfast company.”
McDonald’s also told investors that it is examining its ingredients and may eliminate preservatives. More marketing efforts will emphasize the quality of its food, the company said.
Company execs are wagering on the slimmer menu to provide improved service and re-establish it as a leader in burgers. The changes will also combine mobile and Web ordering and customization, to respond to the growing techno-savvy clientele, according to the Nation’s Restaurant News.
Another emerging focus will be improving the quality of food the quick-service burger chain offers by analyzing the ingredients in every item and focusing on the “authenticity” of its food.
“We must and will win with food,” Andres said.
And McDonald’s customization platform, Create Your Taste, which it plans to offer in 2,000 units next year, is an integral part of the brand’s turnaround efforts.
“Create Your Taste is not a test,” Thompson said. “It’s a rolling implementation now.”
One place the reduction of the menu items is anticipated to increase efficiency is in the drive thru. “The drive thru is about speed,” Thompson said. “You want to make sure it is delivered quickly so you’ll be on your way. You don’t get out of your car for a reason.”
Executives also said other ordering options, including mobile ordering and payment, as well as touchscreen kiosks, are part of plans to respond to customer needs.
“This is not exit, stage left,” Thompson said. “This is a balance between core classics and offering new menu items.”
He also said the customization strategy may help “reassert McDonald’s burger leadership.”