updated - August 11, 2020 Tuesday EDT
After disappointing sales in the most recent quarter, how does the world's largest chain recover? CEO Don Thompson outlines how he plans to pick up the ailing brand.
Shares of the world's largest restaurant chain by revenue fell 2 percent and down
1.83 to $89.76 in pre-market trading on Tuesday following the company's announcement of failing third quarter revenues, operating income and earnings per share.
McDonald's global comparable sales also dropped 3.3 percent, reportedly caused by low customer traffic in all major segments coupled with the haunting meat supplier problems in Asia.
In a response, Thompson said "We must demonstrate to our customers and the entire McDonald's system that we understand the problems we face and are taking decisive action to fundamentally change the way we approach our business."
Business Insider higlights how Thompson plans to overhaul the brand:
Firstly, by "Offering the best Value." The brand has been trying different items such as Chicken Selects and Angus beef burgers and therefore have put value-for-money in the side lines.
"Value is one of our grand pillars. So we must continue to fortify our position within this key customer attribute," Thompson stated.
McDonald's is now trying to win back customers by serving cheaper options like Buffalo Ranch McChicken and Jalapeño McDouble.
Second is putting Customer Service on top. The chain's drive-thru has gotten negative feedback reportedly because of a "complex menu." The company plans to address this by restructuring its worker system and also renovating European kitchens for efficient food assembly.
Another is Marketing. Thompson admitted that the store has lost its touch with today's customers and failed to improve its menu. Majority of the customers were reportedly choosing menus with healthier and wider selections like Chipotle and Panera.
"We are also strengthening our creative messages by placing greater emphasis on the quality of our food and again re-establishing the emotional connection that our customers associate with the McDonald's experience," he stated.
McDonald's recently commissioned the help of former "Mythbusters" host Grant Imahara to improve the brand's credibility by clearing up the image amidst issues of food quality.
Lastly, Thompson plans to Simplify the Chain's Menu. The new menu items means customers have to wait a little longer before their food is served, which makes them uneasy and also will cost them more for the added ingredients and equipment the store uses.
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