McDonald’s Corporation, the global fast food giant, announced that its global sales were down 2.2 percent in November, with U.S. sales down 4.6 percent. The meat scandal in Asia, where a McDonald’s subsidiary was caught processing spoiled beef for consumption, no doubt contributed to the dip in sales. However, the company’s sales have declined even more in the United States than they have in the Asia-Pacific region.
Industry executives believe part of the problem is that ?McDonald’s has not adapted fast enough to consumer desires to create a burger modified to their own tastes. People under 40 years of age, in particular, prefer to build their sandwiches?to their own specifications, rather than settle for the bland consistency and familiarity that helped McDonald’s grow into one of the world’s best known companies.
The company is now planning to implement a “Create Your Taste” program which will allow consumers to customize?burgers to their own specifications. The program will be attempted in about 15 percent of U.S. McDonald’s locations next year. Customers will be able to select their choice of bread, cheese, and toppings, at a touch screen computer. While this may slow the speed at which the order is prepared, it will give restaurant patrons a chance to mix and match, to create?more menu choices than are currently available.
Although?McDonald’s still accounts for almost half of the burger sales among U.S. chains, they are struggling to compete with Chipotle, Panera, and other newer casual fast food chains, for growth among?young consumers. Millennials are often skipping McDonald’s for other restaurants with more enticing menu options.
Furthermore, McDonald’s has been highly visible as a company resisting employee demands for higher wages. It??is difficult?to measure all of the reasons for McDonald’s current malaise. However,?it is not unreasonable to think that some?of McDonald’s wounds are self-inflicted. Some consumers may?have taken their dollars elsewhere because they view McDonald’s stubborn?resistance to?wage increases for their low wage workers as unacceptable. ?Whatever the reason for the decline in sales, consumers are telling McDonald’s, in no uncertain terms, “we’re not lovin’ it.”
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