McDonald’s restaurants stand among American capitalism’s greatest success stories. However, over the past year the company has been losing momentum in the market. Old products have failed to bring in new customers, and new products have failed to attract customers.
The company faces stiff competition from other fast-food chains such as Burger King, which has been gaining market share with a simpler and cheaper version of the McDonald’s menu. And it is being squeezed by more upmarket restaurants such as Shake Shack and Chipotle Mexican Grill, which are rapidly growing. They have been attracting customers, particularly younger ones, away from McDonald’s favorites such as chicken nuggets and fries by offering slightly better quality food and a higher level of customization. In an effort to combat this issue, McDonald’s have introduced their “All day breakfast” options and offering customization of some of their customer favorites such as the Big Mac. This seems to have helped the fast food giants as they have started to show signs of a turnaround. The corporation has also begun experimenting with healthier food options, such as sweet potato fries in an effort to cater to an increasingly health-aware society.
Some franchisees have reported that sales are being hurt as customers choose cheaper breakfast items for lunch and dinner instead of the Big Macs or Quarter Pounders. Egg McMuffin sales have increased by “double-digit” percentages since the launch of this campaign. However, this may only be a short-term solution to the problem.