Japanese financial company Nomura conducted a survey among 29 owners of franchises McDonalds in the USA. 224 from fast food restaurants almost all unhappy with the increase in the number of offerings on the menu, the requirement to increase the number of employees with a lack of space in small rooms and too long hardware upgrade kitchens. According to the respondents, all this leads to the outflow of visitors, frustrated by the slow service.
There are not enough resources to maintain a high level of service, and underpricing makes the situation worse. The General mood of consumers does not promise much success — the last three years, the worlds largest chain of fast food restaurants is losing its position. However, the U.S. has about 14 thousand McDonalds restaurants, and not everyone agrees with the researchers conclusions. Company executives expect further growth and consider their strategy successful.
The company continues to grow against many of the negative indicators in the economy, though not in such volumes as before. McDonalds reached its highest rating as a brand over the past two years, according to YouGov BrandIndex. Nomura analyst mark Kalinowski thinks that McDonalds faced a crisis of brand identity, hence decreasing performance, and the perception of the people of new shares without much enthusiasm.
The main threat for the brand in the U.S. the analyst believes the network Chick-fil-A, which is growing rapidly, offers high quality services and may take the fourth place on sales volumes in the country by 2020. The introduction of terminals for taking orders and the General distribution of communications with customers in a digital format while not adding much value, according to the analyst. Community franchisees surprised by this study, as I do, because we see success in our restaurants.
McDonalds hope that after the decline of popularity in the U.S. the main volume of sales will bring the other countries, but now they have a lot of competitors, the American network has ceased to seem something new and developing countries. McDonalds is perceived by people everyday, they want something new. Many attracted by low prices but long it could not last, experts say.
In Russia in 2014, the revenue growth of McDonalds has slowed from 14 per cent to 3.8. This was largely due to the rising cost of services and products together with increase selling and administrative expenses. The slowdown of economic growth, inflation, political situation in the world, the problems with CPS have had an impact on the companys business and its representatives in the country. Globally, the brand is losing ground precisely because of the perception in the eyes of buyers, not only the company but also fast food in General.
To regain trust and rekindle the interest that McDonalds is trying to come up with something unusual. Corporate leaders believe that to evaluate the results of innovations will succeed only in the long term. For example, in China until November 3 you can enjoy “Modern Chinese Burger”.
On the McDonalds business in Asia last year, negatively influenced by the scandal with hazardous meat. In Japan, after the scandal over expired chicken meat from China and the loss of trust, the company is trying to attract visitors with promotions and new dishes. December 26, Japanese restaurants of the network will be three cheap Burger.
The Egg Cheeseburger, Barbecue Pork Burger, Ham and Lettuce Burger. All three received the abbreviated names in Japanese style. Eguchi, Babepo and Hamutasu. And the day before the new burgers in the permanent menu they will be giving away for free to those whose names coincide with the names of meals (or contain them).
Based on the observations of Japanese Eguchi only can get visitors for free — Babepo Hamutasu names and most likely does not exist. Analyst Michael McQueen believes that McDonalds does not have time to keep up with the times. The inability to adapt, according to the expert, will lead the company to a fate similar to Kodak, Nokia and Blackberry. Consumers have become more attentive to his diet, so “big Mac” and fries already not so popular.
McDonalds, according to analysts, it will still be a strong company, but its growth will most likely cease. Such problems started other companies. Brands Inc., which owns KFC, Pizza Hut and Taco Bell, has also faced problems in China after the scandal with the meat supplier.
The volume occupied Yum Chinese fast food market shrank to 30 percent compared with 40 percent in 2010. Now the company puts more resources into the development of pizzerias and extension in the unreached city. In China, more and more people refuse from KFC and McDonalds in favor of local networks, such as Dicos and Kungfu. To improve the situation, Yum will divide its business in China into an independent company Yum.
China with the exclusive rights to franchise KFC, Pizza Hut and Taco Bell in Asia. This will allow the company to focus on getting back lost customers and increase profitability. Burger King is feeling better McDonalds in the USA, Latin America and the Asia-Pacific region, where the companys revenues are growing, unlike the competitor. In Europe on the contrary.
In particular, in Germany some restaurants Burger King will be replaced by McDonalds, and highways by 2019 will open another 100 Diners. While major brands are fighting for leadership and maintain their popularity, they are beginning to catch up with other. For example, in India has become noticeably more popular than Dominos pizza.
Painful for the fast food chains were affected by the loss of trust and popularity among generations Y and Z. Such brands as McDonalds, it is difficult to change the situation — despite the addition of “healthier eating” menu — in the minds of young people these networks are firmly entrenched as the place of unhealthy food. A rating based on the surveys of the U.S. population, shows in what direction change peoples preferences.
According to analysts, Chick-fil-A, Chipotle and Panera Bread above its competitors primarily on the level of quality products and design. During this people are willing to pay more and come back more often. It is the desire to reduce maximum content of harmful substances in the ingredients and create a pleasant environment for visitors helps these networks eateries.
Fresh meat, baked goods or salads interested buyers are stronger than the “Whopper” or “Macchicken”. The fast food giants have also decided to improve the quality, stop feeding chickens antibiotics, to release them from the cells. But, according to experts, it is important for investors, but for regular visitors it is indicative of the initial approach and the importance of business.
Increasing attention is paid to eateries the category of “fast casual”, where speed of service is almost the same, but healthier food at prices from $8 to $15. In this category there is also a Shake Shack, Five Guys, Noodles & Co and Zaxbys.In Russia now the situation is somewhat different. Fast food networks are developing and are very popular among the younger generation. U.S. chains continue to dominate and grow.
According to experts, the foreign network will take 40 percent of Russias restaurant market. According to the data of 2014, the number of Diners and volume growth was ahead of Subway. Number of visitors.
Most popular Russian networks. As elsewhere in the world, in Russia, McDonalds remains the leader on number of visitors. Burgers are still popular among Russians.