Question: McDonald's has never been content to sit back and wait for consumer tastes to change around it . Rather, the company continues to do what

McDonald's has never been content to sit back and wait for consumer tastes to change around it.
Rather, the company continues to do what it can to shape the face of fast food and influence the
marketplace with new offerings and other changes. In recent years, however, the drive by McDonald's
to reinvent itself has risen to another level in the face of stiff competition from healthier alternatives
(Subway) and a general feeling by the public that major fast-food companies are not much different
from one another in terms of their prices, quality, service levels, and product offerings.
When fast food seemed synonymous with "greasy," "overcooked," and "fried," McDonald's
changed things up with their healthy options menu, including wraps, grilled options instead of the
production line fried foods, fresh fruit, and yogurt-based smoothies. These menu changes were doubly
effective: They allowed McDonald's to compete directly with other stores that promoted healthy
alternatives, like Subway, and they took some of the rhetorical wind out ofthe sails of their harshest
critics, including the San Francisco Board of Supervisors, who, in 2011, banned the inclusion of a toy
in McDonald's Happy Meals, claiming that the "pester power" of children could induce parents
to buy these unhealthy lunch choices. McDonald's response was twofold: Offer healthy options like
milk and apple slices in Happy Meals, and instead of eliminating the toys, McDonald's charged 10
cents for the addition ofa toy, with the proceeds benefiting the Ronald McDonald House.
McDonald's continues to set the pace in the fastfood industry. When competitors offer their own
healthy menus, they are often seen as simply copying and therefore acknowledging the prescience of
McDonald's in staying ahead of the consumertrend curve. The fast-food industry has been the butt
ofjokes and held up to general disapproval for a number of years due to charges that it offers
increasingly poor choices to patrons who don't know any better. Unlike some competitors who seem
content to keep their menus unchanged and their products unhealthy, McDonald's has been doing
what is necessary to change who they are, reinvent themselves, and keep their fingers firmly on the
pulse of their international customer base.
Recently, McDonald's has been focusing on investing in technology to drive sales growth, especially
in the area of digital sales. The company has been installing digital self-order kiosks in their restaurants
and expanding food delivery. McDonald's has also been ramping up its techfocused investments.
In 2019 alone, the company acquired Apprente, a Silicon Valley company using artificial intelligence
to automate drive-thru orders, and Dynamic Yield, a company that specializes in decision logic
technology. CEO Chris Kempczinski emphasizes the importance of technology shaping the company's
strategy in 2020 and beyond: "Digital is transforming global retail, and it will transform McDonald's

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!