2014 may have been McDonald's worst year in 3 decades.
From Espresso: McDonald’s, the world’s biggest fast-food chain, is likely to say today that its global “like-for-like” sales (ie, ignoring new outlets) fell in 2014, the first annual decline since 2002. Its biggest problem is its home market, America, where it has 14,200 of its 35,000 mostly franchised restaurants. Americans flocked to McDonald’s during the recession, but in the past couple of years they have gone elsewhere—to Burger King, its revitalised rival, or upmarket “fast casual” joints. Many seem confused by the menu, with almost 200 items, and put off by frozen “factory” food packed with preservatives. (Some are also appalled by the way the fast-food business treats its workers.) McDonald’s is trying to win customers back. It simplified its menu this month and is introducing fancier bespoke burgers in up to 2,000 restaurants this year. But it may take much more to restore diners’ appetites http://econ.st/1CVXH2W
McDonald’s restaurants stand among American capitalism’s greatest success stories. But now McDonald’s has lost its sizzle. Global sales have been declining since at least last July. When the company announces its annual results on January 23rd, analysts think it will reveal its first full-year fall in like-for-like revenues since 2002. The Economist explains why McDonald's sales are fallinghttp://econ.st/1C4cb24
McDonald's "brand transformation" will include new advertising, new uniforms, packaging, and signage
After a long run of success, McDonald’s, the world’s largest fast-food chain, is floundering—and activist investors are circlinghttp://econ.st/1xZnRk6
The operator of the McDonald’s in Japan reports four cases of food contamination, including a tooth that was found inside a pack of fries sold in Osaka in August.
McDonald's misses you at breakfast. So it's testing a new promotion -- free coffee.
這篇作者沒弄清楚：市場區隔很多樣。
McDonald’s 是世界級的規模，而且不斷設法差異化，他著眼是大眾，不是文中說的，1%的頂層收入層。
由於我住在台北某大McDonald’s樓上，對它有些觀察。
漢堡的牛肉種類至少有2種，一種是所謂的mince 處理過的"雙牛堡"等--它與一杯飲料賣50元，我認為價格合理。
新生南路3段的McDonald’s，近日有些市場區隔：將冷、熱飲料和蛋糕等另設專櫃，員工制服也不一樣。起初我弄不清潔營業目的，後來才知道主打"下午茶"等.....很值得觀察。
Why the young are leaving McDonald’s and Taco Bell for burger brands such as Shake Shack and Five Guys. Which do you prefer?
January 1, 2015 5:12 pm
McDonald’s all-American menu is shaken by the Shack
John Gapper
Millennials regard McDonald’s as unhealthy, outdated and downmarket
T
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McDonald’s Latest Recipe to Reverse Declining Sales: More ‘Lovin’
his is a tale of two hamburgers. One is in decline and the other is growing. One is a symbol of the US and how it exported fast food to the world. The other is a playful New York City contender, marketed as a healthier, tastier alternative. One is the Big Mac, the other is the ShackBurger.
The Big Mac sells for $4.80, contains 530 calories, and is a familiar pile of mass-produced beef, processed cheese, pickles and bun. A double ShackBurger is “100 per cent all-natural Angus beef. No hormones and no antibiotics ever”, on a potato roll, contains 770 calories and costs $7.99 at the Shake Shack in Madison Square Park.
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Which would you prefer?
To judge by the differing fortunes of McDonald’s, which is trying to simplify its overstuffed menu to halt a fall in sales and profits, and Shake Shack, the gourmet burger chain founded by the chef Danny Meyer, which this week filed for an initial public offering, the answer is: the ShackBurger.
Here is another question. Which company is closer to McDonald’s, the self-service stand opened in 1948 in San Bernardino, California by Dick and Mac McDonald, with nine items including a 15-cent hamburger? Is it McDonald’s or Shake Shack, which its IPO filing dubs “a ‘roadside’ burger stand serving a classic American menu of premium burgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer and wine”?
Perhaps the wine is a giveaway — evidence that Shake Shack is a hipster pastiche, favoured by urban millennials who want their organic beef served with a side of nostalgia, and not a real fast- food joint. Surely McDonald’s, where a Big Mac is relatively expensive and Dollar Menu items such as the Bacon McDouble play the role of the old 15-cent hamburger, is the successor?
But the McDonald brothers served beef without hormones and milkshakes with sugar, not corn syrup. California was fairly natural in 1948. US farm animals were not fed antibiotics until 1951 and beef cattle were not given growth hormones until 1954. The mass use of high fructose corn syrup did not start until the mid-1960s.
What about the price? Fifteen cents is equivalent to $1.47 at today’s prices, closer to the Dollar Menu than either the Big Mac or the ShackBurger. But the US is richer than in 1948 — its gross domestic product per head in 2013 was 3.6 times higher. This suggests the average US consumer can afford $5.29 today as easily as 15 cents in 1948. A single ShackBurger costs $5.19.
Rising disposable income, especially among the well paid and educated, has unleashed a challenge to McDonald’s and other “Quick Service Restaurants” from “fast casual” chains such as Chipotle Mexican Grill, Panera Bread and Noodles & Company. They offer lighter, healthier varieties of food (although a Chipotle burrito often has more calories than a Big Mac).
Rising disposable income, especially among the well paid and educated, has unleashed a challenge ’Quick Service Restaurants’
The young are leaving McDonald’s and Taco Bell for such outlets, and for burger brands such as Shake Shack and Five Guys. They prefer the food, they can afford the prices and they regard McDonald’s as unhealthy, outdated, downmarket and not a nice place to be. In its IPO filing, Shake Shack calls itself “fine casual”, deliberately placing itself at the top of the market.
American fast food is being disrupted from on high, unlike other cases of “disruptive innovation” identified by Clayton Christensen, the Harvard professor. Instead of technology or new business methods allowing entrants to undermine incumbents with cheaper products, McDonald’s has a grip on the mass market but is losing the top.
McDonald’s has long struggled with growing complexity, also known as rising inequality. The McDonald’s stand in 1948 — and the franchises later spread across the US by Ray Kroc — were selling to a broad, uniform market. But the top 1 per cent’s share of income in the US has risen rose from 11 per cent in 1948 to 19 per cent in 2012. Selling one menu to one society is much harder.
Its response has been steadily to add more items to the menu to cover all the bases. The nine items of 1948 have expanded to 121, including 14 desserts and shakes, and 29 kinds of chicken and fish wraps and sandwiches. Its mission statement does not even mention hamburgers. Small wonder that its customers are confused.
It is a very big business, with 35,000 outlets in more than 100 countries and annual revenues of $28bn. Shake Shack is tiny, with 63 Shacks and $82m of sales in 2013. But the upstart sells a lot of ShackBurgers — the average US Shack pulls in $5m a year, twice the revenue of the average US McDonald’s outlet, and is more profitable.
Which would you prefer?
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McDonald’s Latest Recipe to Reverse Declining Sales: More ‘Lovin’
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