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McDonald’s Losing its Appeal

December 12, 2014
Plain English Version


McDonald’s is a great American landmark. It has 14,000 fast food restaurants in the U.S. It is getting into trouble with its customers.

For more than a year sales have stayed the same or gone down. Americans are eating less and less of its hamburgers, chicken nuggets and french fries. Customers are migrating.

What is the company’s problem and what is its plan? The company is staying with its dollar menu. However, it is trying to offer some healthier and better quality choices. Often, these choices are more expensive. Prices are nearing those of higher-end chains.

Even an old standby, such as a Big Mac, now costs five dollars.

An expert said, higher price goods are getting closer to Panera Bread and Chipotle. These are now called “fast casual” eateries. And McDonald’s prices are closing in on upscale places like Shake Shack and Five Guys.

Even the Federal Reserve noted that customers are going from hamburgers toward chicken, pizza and Mexican food.

Surveys show the McDonald’s hamburger is not popular with customers. But McDonald’s is not changing its plans. An expert said this amounts to “doubling-down” on its present program.

A company spokesperson said, “Today’s customer wants more choice and value in their dining-out experience.” How will McDonald’s do that?

The company said it would test a “Create Your Taste” program. It will allow customers in some 2,000 restaurants to build their own hamburgers.

McDonald’s is learning the hard way not to take its customers for granted.

Source: The Washington Post December 8, 2014

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