The article mistakenly assumes that same store sales is the only indicator of success. Profits are the most important indicator and often same store sales increases are driven by discounting. It is possible that a 1% same store sales growth results in higher profits than a 4% sales growth because of the margin erosion caused by discounting.
Report
Posted by
hoopster22
on
2009-09-10T12:41:55
It is interesting to me that most of these comments come from current or former McD's employees - and are quite defensive in nature. While I understand that they may FEEL they're being attacked in this article and thus come out with guns blazin', I think they've let their knee-jerk reactions blind them to the author's true points. The point is not that "McDonald's has blinked" but that an apparent "blink" by any QSR is an opportunity for competitors that shouldn't be wasted. If you actually get to the second half of the article without having engaged shields and armed torpedoes, then there's some worthwhile commentary there.
As a restaurant manager, I enjoy reading all the articles in support of McDonalds and those challenging us. It is interesting to see how people interpret what we do. Our core products never get put to the wayside, however we like trying new things which are usually at the request of our customers. McDonalds has been around a long time and is a brand name that many trust. Customers like specialty coffees but when raising a family cannot afford the expensive coffee houses. McDonalds offers them the alternative--a quality product for half the price. I had my doubts about the Angus burger, but have been amazed at the results. Customers who went to Steak-n-Shake for mushroom swiss sandwiches are finding our Mushroom Swiss Angus Burger much more appealing in value and taste. Although this writer may not have had all the facts about McDonalds you can bet we will survive and be around another 50 years. We also love the free advertisement you provide as my dedicated and loyal customers love to come and tell me about these types of articles and that you don't know what you are talking about and should ask them. Thanks for letting me provide feedback. Have a great day.
I think the author has simplified the equation to such a point that it is not helpful. These behemoths of the restaurant industry clamor to get the attention of folks that have no real brand loyalty. What these fickle folks want are the core products, and they want them cheap. Unfortunately for McD's they have misjudged the ROI with respect to the McCafes. I will guarantee when the numbers are looked at in 12 months time no significant defections from SB would have taken place, it's two different worlds. Why did 5 Guys take off? because they catered to what the folks in their category wanted, the day 5 Guys starts doing more than burgers will be the day they have lost their way.
I'm just an unemployed private citizen (admittedly with roots in the restaurant industry). One place Starbucks will defeat McDonald's is in the rest rooms. Starbucks offers clean and comfortable accommodations; you feel like you're at home there. McDonald's restrooms feel like they are designed for use in war zones, and to be able to be hosed down every night. That may be simply a practical matter, but if what you want is coffee and a nice place to sit and talk, McD's is not quite there yet.
Report
Posted by
John Bugay
on
2009-08-27T10:38:49
As a former Marketing Manager for McDonald's and quick service industry veteran I disagree with the writer's opinion. While I appreciate open discussion as much as anyone it's important to do one's homework first. Historically, the Golden Arches has never been a "one trick" pony. They have always had a multi-tiered marketing strategy even when introducing new products. While they may focus on one new introduction to ensure it's success; McDonald's has always understood the importance of protecting the rest of their portfolio. For example, the recent introduction of the Angus Burger, the dollar breakfast menu and the reprise of the Chicken McNuggets to name just a few.
McDonald's consistent same store sales growth over the previous 5 years is rock solid testiment to their staying power despite the intense competition and challenging economic conditions. These results don't happen because you focus on the trees instead of the forest.
I'm sure McDonald's would love for the competition to think its fallen asleep at the switch. I guarantee BK hasn't.
Have a great day everyone.
Report
Posted by
Tom Peters
on
2009-08-27T10:38:41
My name is Todd Blackwell, and I also work for McDonald's USA.
I would also invite the author and her readers to try our new Angus Burgers. These three new burgers are made with one-third pound of Angus beef and come in three varieties -- a deluxe burger with pickles and tomatoes, a mushroom swiss burger and a bacon and cheese burger. My favorite is the mushroom swiss, no mayo.
These bigger, premium burgers are now being offered nationwide and are a great value compared to similar restaurant offers.
Thanks for the opportunity to comment.
Report
Posted by
Todd Blackwell
on
2009-08-05T10:49:04
As a marketer and mother of two very loyal McDonald's customers, boys ages 8 and 16, I believe that Denise Lee Yohn put the spotlight on a real opportunity for the competition. The fact that a McDonald's spokeperson very quickly used this forum to respond to Ms. Yohn's opinion with a well-crafted statement to defend and define the menu strategy, begs the question, why is McDonald's feeling the need to be defensive? Has the strategy been questioned within the organization, hence the rationale was standing by, ready to be deployed?
I'd like to point out to readers that the Outside Insights column is just that--a column. Denise's commentary is an opinion and was meant to spark discussion. As a result, I encourage readers to participate in an active dialogue here regarding industry innovation, especially in light of Danya's response.
