McDonald’s to roll out slimmed-down menu next month as sales slide

PUBLISHED BY
Anna Domanska



TAGS:



7 years ago




McDonalds

McDonalds will also shorten the food ingredient lists to answer customer demand for simpler and more natural food.

One of the most well-known fast-food chains in the world, McDonald’s announced it’s going to change some of its ingredients and how people get its food after the company reported yet another monthly decline in U.S. sales and customer service.

McDonald’s said they will take off eight items from the menu and cut down the number of Extra Value Meals in an effort to expedite service and boost sales. They will also shorten the food ingredient lists to answer customer demand for simpler and more natural food.

CEO Don Thompson and Mike Andres, the president of McDonald’s USA, are meeting with analysts and investors in Oak Brook, just two days after the world’s largest restaurant company posted its worst monthly U.S. sales in more than 13 years.

“The pace of change outside of McDonald’s has become faster than perhaps the pace of change internally,” Andres said during a short presentation on Wednesday morning.

Andres said that including more than 100 items to the menu over the past decade helped boost sales, touting that the items added brought revenue of nearly $770,000 at an average restaurant. However, the more complex menu also made it hard for restaurants to execute and maybe difficult to order, he said.

While excluding some weaker performing items, Andres assured that McDonald’s would also offer food that is more culinary inspired and sell products with shorter and fresher ingredients. “We are not going to re-energize this business by taking incremental steps,” Andres said.

The meeting in Oak Brook, Illinois, came after the world’s largest fast-food chain reported earlier this week of yet another monthly decline in U.S. sales. It said the figure fell 4.6 percent at established locations in November, the biggest drop since 2001. McDonald’s U.S. same-store sales have not increased since October 2013, where it has more than 14,000 restaurants. The company is betting that the slimmer menu will better service and re-establish it as a leader in burgers.

Andres, who manages more than 15,500 restaurants in the United States and Canada, came back to McDonald’s in October after leaving McDonald’s for a couple of years. During his absence, he headed steakhouse chain Logan’s Roadhouse.

McDonald’s rolled out a new organizational structure in October for the United States as it tries to allow local operators make more of their own decisions. McDonald’s said it would create four new U.S. zones: Northeast, South, Central and West, allowing it to become more agile.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Some Microsoft employees stayed at data centers during Pandemic to keep all systems going

Some Microsoft employees stayed at data centers during Pandemic to keep all systems going

The Covid-19 pandemic ravaging the world for more than a year has forced companies and organizations to find viable solutions to keep the business going. Most found a solution in w
3 days ago
Meme stocks frenzy and 3 companies to follow

Meme stocks frenzy and 3 companies to follow

The doom and gloom about the stock market that has been predicted since the pandemic started has abated somewhat with the resilience shown by investors (helped by low-interest rate
3 days ago
US Space Force allows repurposed SpaceX rocket to launch GPS satellite

US Space Force allows repurposed SpaceX rocket to launch GPS satellite

A GPS navigation satellite built by Lockheed Martin is set to ride a reused SpaceX booster on a launch from Cape Canaveral, Florida, Thursday. It will be the first time a military
3 days ago
Disney boss says 40 pc ad revenue went to streaming sites, no plans of ad supported Disney+

Disney boss says 40 pc ad revenue went to streaming sites, no plans of ad supported Disney+

Walt Disney CEO Bob Chapel says the company’s advertising revenue for the upcoming fall television season was strong and went up by “double-digits” compared to 2019.
5 days ago
BlackRock ETFs breach $3 trillion mark in May

BlackRock ETFs breach $3 trillion mark in May

BlackRocks’ exchange-traded fund crossed $3 trillion for the first time in May, in sync with the ETF industry’s race to an all-time high of $9 trillion.
5 days ago
Flagship Pioneering, investor in Moderna raises $3.4 billion funds

Flagship Pioneering, investor in Moderna raises $3.4 billion funds

Flagship Pioneering, the bioplatform company, and the venture capital investor in Moderna, today announced that it had raised additional funding of $2.23 billion, which brings its
6 days ago