McDonald's struggles after E Coli outbreak: is the menu change enough?
- In response to poor sales and rising prices, McDonald's has introduced its biggest menu changes in years.
- The new McValue menu features eight items with promotional offers to attract customers.
- These changes aim to improve customer retention and drive sales amid economic challenges.
In an effort to counteract declining sales, McDonald's has introduced substantial changes to its menu, marking their most significant update in years. This move comes on the heels of a poor sales performance last year, exacerbated by an E. coli outbreak that affected the chain's reputation and customer traffic. The fast-food giant launched the new McValue menu, which offers eight items to choose from, across breakfast, lunch, and dinner. This initiative is designed to improve customer attraction and retention by making meals more affordable during a time when many customers are opting to dine at home due to rising food costs. Additionally, McDonald's has implemented a buy one, add one for $1 deal that allows customers to combine items, thus providing greater flexibility and enticing values at meals. Other promotional measures include continuing the popular $5 meal deal, which was originally launched during the summer and has been extended multiple times. These offers reflect a broader trend in the fast-food sector, where chains are increasingly looking for competitive advantages as they navigate rising costs and inflation. The rising prices of McDonald's items have also played a significant role in driving shifts in customer behavior. The average price of meals at the chain has risen by 40% since 2019, sparking concerns among long-standing customers about affordability. For instance, a Quarter Pounder with cheese meal now sits at around $11.99, a steep increase from $5.39 a decade ago. As a result, the fast-food industry is facing a critical juncture, and McDonald's must respond adeptly to retain customers who may be feeling the squeeze of inflation. The CEO of McDonald's, Chris Kempczinski, has emphasized the need for the company to focus keenly on affordability amid these challenges. Following the announcement of the new menu, McDonald's stock shares experienced a slight increase of 2.7%, suggesting that investors remain optimistic about the company's potential to turn around its fortunes through these strategic changes. As part of the launch strategy, McDonald’s has engaged social media to involve customers, including promotions featuring celebrity endorsements, further aiming to create buzz around the new offers and menu items.