The new boss of McDonald’s is facing the biggest challenge of his career after the fast-food company admitted an “urgent need to evolve with today’s consumers” amid tumbling sales and “aggressive” competition.
The world’s biggest burger chain conceded that “consumer needs and preferences have changed” and that the time had come to “reassert McDonald’s as a modern, progressive burger company”.
Steve Easterbrook, 47, its British-born chief executive who took charge less than two weeks ago, joins a business that has been struggling to hold on to customers. “Fast casual” rivals such as Chipotle have positioned themselves as more wholesome alternatives.
Figures for last month suggest that McDonald’s is waging a losing battle in its home market. While global sales fell by 1.7 per cent, in America revenue plunged by 4 per cent.
Mr Easterbrook took the reins as a “turnaround summit” was held in Las Vegas for McDonald’s franchise-holders, designed to give “renewed energy and focus” to restaurant operations.
Advertisement
The company is perhaps belatedly moving into the digital age, with the trial of a mobile ordering app for iPhones and Android devices. It also has a McD app, available in more than 2,000 American restaurants, that sends special offers to customers.
At the South by South West music and digital festival in Austin, Texas, this month, McDonald’s will be holding sessions inviting start-ups to come up with ideas for how it can best exploit connected devices.
It is also improving ingredients, announcing last week that it would limit the use of antibiotics in chicken in the next two years.
McDonald’s shares were flat yesterday.
Advertisement
In Steve Easterbrook’s in-tray
- Allow more regional and customised menus. McDonald’s plans to roll out a “create your own taste” programme to 2,000 outlets
- Introduce healthier, higher-quality ingredients
- Digital ordering and payment. McDonald’s was among the first merchants to sign up to Apple Pay, the digital payment system
- Present McDonald’s as a modern, progressive, more upmarket company