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Why McDonald's Is Dying

McDonald's was once a simple and delightful concept to behold: a reliable national network of burger joints where you could indulge in beef, fries and a Coke and get change back from your dollar.

The simplicity was tantalizing, founder Ray Kroc kept it that way and a juggernaut spanned the globe.

Fast forward to 2014, McDonald's chalks up an ugly sales decline and far more ominous than that (but a key driver of what I predict as the coming collapse), is that no one knows what McDonalds is any more.

A burger joint? Have you tried the plastic salads? Clean and reliable? Hope you haven't used a McD restroom recently. Change back from your dollar? Well, maybe from a ten-spot.

From my perspective and those now chowing down at Five Guys and Chipotle, McDonald's has clearly lost its way. It no longer knows what it is. In marketing terms, it has overloaded its brand promise or so badly confused it that it no longer has a center of gravity. Like Sears, it has become "whatever you want us to be," and if you've looked in recent years, Sears appears to be on life support.

Clearly, McD is still a restaurant industry behemoth, but I believe the current decline is an ominous sign as opposed to an aberration, as management would have Wall Street believe. Why do I believe that a once-great American icon is going the way of Woolworth's?

Let me count the reasons:

1, When a business forgets the what it stands for, when it is rushing desperately after every opportunity in sight, it leaves its customer base scratching its head--and on the way to a better meal at the organic drive-in down the street.

2. Great marketing is opportunistic by nature but it is also disciplined. It is passionate about its sweet spot and sticks to it. Imagine Walmart going glam!

3. Management obviously thinks it is smarter than the guy who started the place. They won't admit it, but they do. If he could come back for a day, Ray would give you the grease and the change back from your buck.

4. McD is a big idea that never successfully navigated to a second coming. It is still a 1950's vision but without the innovation that keeps great concepts ahead of the curve. (Disney is of a similar age, but it has introduced waves of change aligned with the brand promise and millions still know what it is and why they Must take their kids there.)

If you love McD and are over 60, ignore this post. If you are in your palmier days, buy 1,000 Big Macs and a freezer to store them.

Ray's stroke of brilliance may be headed for the history books.

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