McDonalds: A Case Study
McDonald’s McDonald’s is widely considered the “king” of fast food restaurants. Started as one restaurant in 1 955 by Ray Crock, McDonald’s Is now a worldwide chain offering everything from a traditional hamburger to Production’s and everything In between. The McDonald’s website states” Ray Crock wanted to build a restaurant system that would be famous for food of consistently high quality and uniform methods of preparation.
He wanted to serve burgers, buns, fries and beverages that tasted Just the same In Alaska as they did In Alabama.
” This violin Is the underlying cause of success over time that McDonald’s has achieved. However, not all Is well as the saying goes you can never Judge a book by Its cover. McDonald’s earnings have declined since the late sass’s and early KICK In 2001 , McDonald’s profit decreased by 17 percent and there are a variety of factors, which lead to tens decrease. A major reason Tort ten sales clean Is market saturation.
I nerve are many more alternative restaurants today including Burger King, Wendy, Taco Bell and also the not as formal sit down restaurants such as Pander and Boston Market who are taking business away from McDonald’s. “Burger King is currently treating a gingerbread cookie shake, while Wend’s new Garden Sensations salads are doing well.
On Thursday, Wend’s announced that its same-store sales in North America were up 2. 7 percent in the third quarter” (Storm 2012). A cause for concern is McDonald’s worldwide image.
Despite the efforts of McDonald’s marketing and PR staff, the fast food super power is known around the world as unhealthy and is associated with obesity. Parents who were once taking their children to McDonald’s on a regular basis are now decided on healthier options. The problem for McDonald’s is that even though many of these restaurants can be just as bad for a person, the others do not have the same image as McDonald’s.
Today, McDonald’s sales are back on their way up and the reason is that the corporation decided on an image change.
McDonald’s goal is to be known not as fast food but to be known as “good food fast” (Adams, 2007, 157). McDonald’s is also taking a nothing to hide approach by allowing its nutritional facts about its food able to be accessed a variety of ways including at the restaurants and online or through smart phone and tablet applications. The year 2004 proved to be the year that turned things back around for McDonald’s and although there is always going to be a battle in the “hamburger war” McDonald’s is currently still in the lead. The company credited the increase to the strength of the United States market as well as new menu items, remodeled stores and credit card payment options. At the 1,100 stores that have been “rummaged,” sales are 5 percent above the average, the company said.
Another 1 ,300 stores will be remodeled this year” (Warner 2005). Although McDonald’s is not the healthiest option for Americans, it offers variety, it’s affordable, and is a quick fix for the average American who is on the move all day everyday.