Mc Donald's Case
The success of McDonald’s
1955 : Ray Kroc buys the small chain for only 2.7 million dollars
Today Mc Donald’s = the world largest fast-feeder (31 000 restaurants, 47 million customers each day, sales of more than 50 billion dollars annually)
Challenges for McDonald’s
2002 : the company posted its first-ever quartely loss
McDo seems to have fumbled on the fundamentals
Rack-bottom in customer surveys on food and service quality
More damaging : the problem of obesity
McDo was seen to be out of step with the time : “it comes off as uncultured, unclassy and uncool...if you want to be chic you eat sushi”
New competitors = “fast-casual” restaurants (Panera Bread, Cosi, Baja Fresh, Pret a Manger)
The competitors offer more meals in more fashionable surroundings
Too few healthy menu choices : the parents of two teenage have charged tha McDo was responsible for their children obesity and health
2003 : McDonald’s turnaround plan
Back to basics : consitence products and reliable service (speeding up service, training employees)
New signs : McCafe, Bistro Gourmet. Happy meals still exist but there is more choice : panini sandwiches, gourmet burgers and crème brulée cheesecake.
McDo works with American Academy of Pediatrics, the American Dietetic Association and the Society for Nutrition Education. McDo has designed a children’s nutrition education program : “What’s On Your Plate”
Introduction of a “Go Active! Adult Happy Meal” : the goal is to make the menu and its customers healthier
Mc Do under attack in Juny 2004
Realization of « Big super size me » by Morgan Spurlock
The spokesman reacted by saying that as a leader is unavoidable to be attacked
The exageration of the fact is recognized by the director : the result would have been the same if the experience was led in another restaurant
But the spokesman doen’t deny the problem of obesity end the role of Mc Do
Information of the consumer and improvement of the offer
In United States : a woman have done the same experience choosing balanced meals and doing sports and . . . she loses weight !
Results
2004 : the company was posting steady, even startling sales and profit increases
2.3 million more customers each day than in 2003
In France in 2003, the turnover of McDonald's progressed of 10%, to reach the 2,2 billions of euros ; in 2004 : 1.2 million of customers each day
We cannot forget the problem related with working...it is an undeniable fact that McDo is recognized as to exploit his employees...
