Starting in mid-2018, McDonald's will begin to serve their popular "quarter pounder" hamburgers with fresh beef that will be prepared when ordered, as opposed to their old technique of cooking the beef and then holding frozen beef patties for use as needed. Chief Executive Steve Easterbrook believes the change is necessary to address the consumers' demands for fresher, simpler food. McDonald's is hoping that the shift to fresh beef is enticing enough to convince unsatisfied customers to give the fast food chain another chance. The move to fresh beef is expected to lift sales, although likely not to the
degree associated with all-day breakfast after its debut in late 2015. Do you think more people will be heading to McDonald's after hearing about the switch to fresh beef or do you feel the switch to fresh beef isn't enough to convince people to give McDonald's another chance?
https://www.aol.com/article/finance/2017/03/30/mcdonalds-quarter-pounders-to-be-made-with-fresh-beef/22018844/
"Social responsibility" is a behavioral component long overlooked by companies. I think this is the wrong step in the right direction. My beef with McDonalds is the culture surrounding the race to the bottom in the fast food industry. It's how they treat employees, how managers are incentivised, and other aspects of labor relations that would do more to reconcile how I feel about doing business with McDonalds than knowing they use fresh beef.
ReplyDeleteOf course, it should boost sales overall (n = 1 is not a good way to generalize), just not mine.
I believe that switching to fresh beef will increase McDonald's sales but not to what they expect. I think McDonald's needs to change their approach to fast food. I believe that in order to increase their sales over a long period of time, they need to have healthier options and possible offer more vegan and vegetarian options. I think only changing from frozen to fresh beef will not change the opinion the general public has about McDonald's.
ReplyDeleteYou have to wonder what is going to happen to Wendy's advertising strategy.
ReplyDeleteI am gonna mclove mcd's no matter what kinda of chemically engineered beef they use <3
But yeah their margins may shrink, we may also to see the current trend of rising menu prices (dollar menu looking pretty skimpy these days).
I agree with Branden. I think that in order for McDonald's to make a substantial increase in sales they will have to change their image completely. In order to attract new customers they will need to make the move towards slower, healthier fast food, such as the models given by Chipotle, Noodles and Co, Panera, ect.
ReplyDeleteI doubt it will last. I don't think many of the over 3000 owner/operators of the franchises can make a profit doing this. In upscale places, the change will be valued perhaps. But franchises in small towns and lower income urban areas will probably suffer.
ReplyDeleteI quote "“To deliver sustained growth, we have to attract more customers more often,” CEO Steve Easterbrook said in a statement. “Our greatest opportunities reside at the very heart of our brand – our food, value and the customer experience.”
McDonald’s customers can expect to see more kiosks pop up in stores across the country which they can use to place orders. While the machines won’t fully replace staff at the counter just yet, the company says they will help users personalize their order and get food into the hands of hungry customers faster. On-the-go customers can place orders on the McDonald’s app and pick it up either in store or at the drive-thru window.
The company said it is also partnering with third-party partners to test delivery options.
Reaction to these efforts has been mixed from some of the chain’s franchisees, according to Credit Suisse analysts Jason West and Jordy Winslow.
“Several of our contacts view these initiatives as expensive investments that are unlikely to reduce labor costs and uncertain to drive sales. Others consider such initiatives (particularly those around digital) as necessary to stay relevant with the consumer and compete in a rapidly changing environment,” a note to clients read.
Those franchisees cited digital kiosks not accepting cash, parking lot space, labor issues around curbside pick-up and execution risks as some of the key areas of skepticism." Source is http://www.foxbusiness.com/markets/2017/03/17/mcdonalds-expands-fresh-never-frozen-beef-push.html
I agree with both Zoe and Branden. The fast food industry has some conventional view of being low quality food but companies like Panera really differentiate themself in that space with healthier options. Having worked in the consumer goods industry I know there is a huge shift in trends in the food industry right now that's especially driven by millenials and I get that McDonals needs to adjust accordingly, but when we talk about brand image that association will be hard to make that they have fresh food.
ReplyDeleteI kinda agree with everyone, I just think it's going to continue to get harder and harder for fast food chains to prosper. When you've got places like Moe's, Pancheros, Panera, etc. that are just overall more healthy options & great tasting food, it's hard to choose a McDonald's for food. At least for me, now I'm still gonna have mcdonalds from time to time but that's got nothing to do with the beef. Most of my money will be spent at the healthier places, plus it really doesn't take that much longer to get your food at these other restaurants.
ReplyDeleteI don't think that it will make a substantial difference because either way, customers who enjoy McDonald's will go there regardless. It is just like the customers who goes to Taco Bell and eats knowing that their meat is suspect. I do agree with Tommy that fast food chains like McDonald's will get harder to prosper because of the growing industry of healthier alternatives. These alternatives are only getting faster in terms of service with more apps coming out where you can order ahead of time.
ReplyDeleteI think that a lot of consumers are just extremely wary of the claims made by fast food restaurants nowadays. McDonald's is known for taking shortcuts to increase profits. I feel that this image of the company is so ingrained in many consumers' minds that the transition to fresh beef may not be enough to overcome this perception. So I think that they will be able to persuade some people and will see a change in sales volume. But, as many others have said, I don't think it will have the effect on profit which the company is hoping for.
ReplyDeleteI agree. When thinking about McDonalds, the first thing that comes to mind for most consumers is unhealthy, fast food. It will take a long time for McDonalds to change this perception, if that is what they are going for. It also doesn't help that Wendy's, In n Out, and other fast food restaraunts have already made increased efforts in their fresh food campaign, as Nick stated.
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