McDonald’s is struggling to capture its former glory. Although it is still the world’s largest restaurant chain, the company has seen falling sales during the past few consecutive quarters. To reinvigorate the company, CEO Steve Easterbrook announced his restructuring plans Monday.
In a 23-minute video to investors, Easterbrook admitted that “our recent performance has been poor. The numbers don’t lie.”
“We’re not on our game,” he added.
To improve the company’s performance, Easterbrook emphasized that the brand had to stick to its No. 1 priority: serving today’s customers who want “high-quality, good-tasting food” with “fast and friendly service.”
Elusive Customers
In America—the company’s largest market, making up more than 40 percent of its total income—McDonald’s faces pressure from emerging “fast casual” restaurant chain competitors like Chipotle and Shake Shack, which tout fresh, natural ingredients as American consumers increasingly turn toward healthy food options.
Abroad, a recent food scandal involving one of McDonald’s meat suppliers in China caused sales to fall in the Asia–Pacific region.
Though McDonald’s remains the world’s largest restaurant chain, its struggle to capture people’s taste buds was evident in Easterbrook’s attempts to restructure. Phases in his plan include “continuous improvement in food quality and perceptions” and “building brand trust.”
