McDonald's Taking Time to Regroup & Rebrand
NEW YORK – McDonald's Corp. plans to use the next 18 months to rebrand itself as a destination for appealing food, not just low-priced food, according to a Bloomberg Businessweek report. It also plans to add more fruit and vegetable items and begin cooking with sustainable beef in 2016.
Company officials stated during this week's earnings call that it will take six quarters to regroup after sales continued to decline during the most recent quarter. However, the rebranding won't involve a new logo or design, but rather fundamentals such as improved value, service, marketing and menu.
McDonald's wants to be a "more trusted and respected brand," CEO Don Thompson told investors during the earnings call. Issues such as service problems, dietary concerns, lack of major successful product launches and employee compensation have caused consumer sentiment about the fast-food giant to drop.
The company has transformed one of its West Coast locations into a "learning lab" to help develop a dining experience that "customers will feel good about," said Thompson. This restaurant will collect customer feedback on food, environment and other aspects of their visits.
Core products such as French fries, the Big Mac and the Egg McMuffin, which generate approximately 40 percent of sales, will be at the center of McDonald's food efforts, but menu additions will likely be focused around premium beef and chicken items, breakfast items, coffee and blended frozen beverages.
The future of McDonald's will also involve a simpler menu, remodeled restaurants and amenities such as free Wi-Fi, along with new locations and an expanded digital presence, according to the report.