Back to basics: McDonald's presenting a fundamental approach to fast food

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             For years McDonald's has been at the helm of fast food industry due to their inexpensive, quality food. However, the luxury of getting a burger on the run is a fad that has seen its end in an age where subway and Chipotle control the fast food market. McDonald's has began a transition to an intensive approach that includes table service and a thicker patty. In the article "McDonald's Beefs Up Its Range with a Meatier Mac" author, Saabira Chaudhuri, discusses the businesses new approach to fast food. 

            McDonald's has began testing in the UK with a sirloin burger, a new menu item most notably different for its bigger bun and thicker patty. The food giant aims to answer to growing concerns over competitors whom have experienced great success in Europe for its larger quantity meals. The new sirloin burger is 30 percent thicker than that of a traditional patty, yet costs more and takes more time to prepare. To understand the motive behind this sweeping change, one must understand what is going on within the McDonald's corporation. In March of 2015 McDonald's hit the lowest profit margin its seen in the past 5 years. compared to March of the previous year, McDonald's had seen a 4.36 percent drop in margin to a staggering 13.62 percent. Leaving shareholders worried, McDonald's corporate had to make a change to their system. Following the all-day breakfast campaign, McDonald's saw a 2.9 percent revenue increase and opened 82 stores in the US alone. The change in the thickness of the patty is a logical approach to a renovated business structure. The change comes in a series of changes likely to be rolled out in the next 3 years with the focus on improving quality and the customer experience. 

  

          As I have discussed in my previous posts, McDonald's is struggling to provide a healthy, cheap option that is enticing to the customer. An increase in quality means an increase in price, which will lead to less prevalence among the lower class; bringing the opposite output McDonald's intended. McDonald's has been working to improve the burger chain's food quality, customer experience, employee benefits and brand image in the U.S, where McDonald's has struggled. Their efforts seem to be paying off, for McDonald's reported last month its first quarterly increase in two years in sales at U.S. restaurants open at least 13 months. It will be interesting to see how the public responds to the new approach. 

In my next post I will summarize the how the workers affect the output of the corporation and the effects government regulations has had on success abroad.