Skip to main content

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.

Comments

Post a Comment

Popular posts from this blog

HOW DO YOU WANT TO BE REMEMBERED?

Genesis 32:24-32 I read recently about a man who had passed away and what they wanted the funeral parlor to do with the body. This man was a big Pittsburgh Steelers fan, and this is how the family wanted him remembered. So they told the funeral director that instead of placing his body in a coffin, they wanted the man placed on a recliner, with a television playing Pittsburgh Steelers highlights. Next to him there was to be a table with an open can of beer and a package of cigarettes. This is how his family remembered him, and this is how the family wanted the rest of his friends and loved ones to remember him. This was the lasting impression that was imprinted on the minds of people who knew him. The question I have for you today is a simple one: How do you want people to remember you? One day all of us are going to die, and how would you want people to remember you? Some of us might die soon, and some of us might not die for a while, and we have all heard that statement about lasti...
Post a Comment
Read more

FG planning to ban porn sites

                    The Nigerian government has said that it is planning to introduce a law banning all pornographic websites in the country. This was disclosed by the National Security Adviser, Sambo Dasuki on Sunday, January 25, in Kaduna. Dasuki revealed this at the closing ceremony of a three-day workshop on use of social media organized for Islamic preachers, Imams and youths in the state.              The NSA, who was represented by the Minister of Special Duties, Kabiru Turaki , said: “Government is planning to ban and block websites that inculcate negative attitudes in our children but we need a law to support such move.” “Because without a law, people can go to court and claim infringement on their rights,” he added. The workshop, aimed at correcting anomalies in the use of social media, was organised by the national body of I...
Post a Comment
Read more

EBOLA VIRUS ALL YOU WANT TO KNOW

Ebolavirusdisease(EVD) orEbolahemorrhagic fever(EHF) is the human disease caused by the ebola virus. Symptoms typically start two days to three weeks after contracting thevirus, with a fever, throat and muscle pains, and headaches. There is then typically nausea, vomiting, and diarrhea, along with decreased functioning of the liverand kidneys. At this point, some people begin to have problems with bleeding. [ 1 ] The disease is usually acquired when a person comes into contact with the blood or bodily fluidsof an infected animal such as a monkey or fruit bat. Fruit bats are believed to carry and spread theviruswithout being affected by it. Once infection of a human occurs, the disease may be spread from one person to another. Men who survive may be able to transmit the disease via their semenfor nearly two months. To make the diagnosis, typically other diseases with similar symptoms such as malaria, choleraand other viral hemorrhagic feverare first excluded. The blood may then be teste...
Post a Comment
Read more