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All about McDonald’s turnaround plan

May 5, 2015

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All year, we’ve told you about the efforts by McDonald’s to fix the fast food company’s decline. First, it named a new CEO. Then, it said it planned to serve more clean food, and announced it was testing all-day breakfast.

Now, McDonald’s has unveiled a more-comprehensive turnaround plan. You can watch CEO Steve Easterbrook explain it here in a 23-minute video.

But if you don’t have that much time, ABC News kindly broke down the highlights for consumers.

Delivery. McDonald’s is going to roll out a McDelivery plan in Manhattan, Brooklyn and Queens. Everything on its menu is available, save for ice cream cones and sundaes.

It’s using a delivery company called Postmates, the same program that Chipotle is using to deliver its tacos and burritos. McDonald’s is far from the only fast food company that is trying to bring its offerings direct to its customers.

Taco Bell, part of Yum Brands, also is testing a delivery service as is Burger King with BK Delivers.

New menu items.

Easterbrook says McDonald’s is going to focus on “hot, fresh food.” That includes a new chicken sandwich, and a sirloin burger coming in June.

Analysts say McDonald’s is trying to stave off competition from Five Guys, In-n-Out Burger and Shake Shack, which have expanded across the United States. Of course, McDonald’s dwarfs those specialty chains, but they’re offering a more-upscale product that is eating into the upper tier of the McDonald’s market.

Have it your way.

Yes, that’s the old slogan of another burger chain, but McDonald’s is going to embrace customization. It has a “Create Your Taste” program in Australia that U.S. customers soon will see. Basically, customers can pay a little more to get their burger the way they like it.

McDonald’s is already testing the plan in California at some drive-through locations called TasteCrafted. Of course, McDonald’s has always been willing to make special order burgers, and many people who dine there ask for fresh-made burgers in order to ensure a sandwich hot off the grill.

No matter what McDonald’s tries, it will get plenty of notice, given its 6,000 restaurants worldwide, and 1.9 million employees. For story ideas, talk to the customers at your local franchises. What do they think of delivery?

Here’s a chart from BurgerBusiness.com that shows how McDonald’s menu has changed the past 10 years.

McD-Menu-2004-to-2014

Author

  • Micheline Maynard

    Micheline is a contributing columnist at the Washington Post concentrating on business and culture. She has written about flooding in Detroit, tainted water in Benton Harbor, nationwide shortages of restaurant staff, and vaccine hesitancy.

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