Since it has lost hundreds of millions of visits in recent years, McDonalds plans to win its dinners back with tastier burgers, locations equipped with the latest tech, and delivery services. The executives of the fast-food chain presented the plan Wednesday.
They also want annual sales growth to climb between 3% and 5% starting 2019. The news was on the investors liking apparently as shares saw a rise of 1.1% on the same day and closed are $129.05.
CEO Steve Easterbrook told shareholders that the chain can only grow if guest counts rise.
It’s as plain and simple as that,’
The recent plan is part of more comprehensive efforts to revive the franchise. In the past, McDonalds introduced all-day breakfast – which was a huge success, offered a wider variety of burgers – such as the junior and jumbo-size version of the famed Big Mac, and did business with more franchisees.
However, the company’s leaders don’t think these efforts are enough to stop loyal customers from leaving the restaurant for its rivals. The company’s senior VP for corporate strategy and business development noted the restaurant lost “hundreds of millions” in guest counts from loyal customers – teachers, students, and construction workers.
To win them back, McDonalds plans to improve the quality of food, convenience, and popular categories such as coffee. Executives acknowledged that the lower traffic is due to the fact that the chain hasn’t been able to offer the same quality, value, and convenience as it used to.
In the Middle East and Asia, hundreds of locations offer delivery. So, the executives think it is a good idea to expand the service in the U.S. too, where people usually live within 3 miles of its locations. The fast-food chain is reportedly negotiating agreements with food ordering service firms such as Seamless.
Executives also want to revamp its McCoffee and other caffeine-based drinks to turn casual guests into loyal customers. In Australia, for example, the approach paid off as in the restaurants where there are McCafe baristas, coffee now accounts for 14% of the business.
McDonalds also unveiled a plan to roll out kiosks that will replace counters where people can pay for their purchases and have food delivered to their table. In North America, where it has 14,000 locations, the fast food giant plans to equip 2,500 of its restaurants with kiosks this year. The rest of the U.S. restaurants will be revamped in three years’ time.
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