Would you like large fries with that? It is a phrase we are all familiar with when you place an order at McDonald’s and is estimated to account for 15-40% of McDonald’s annual profits.
McDonald’s is a global platform and ecosystem. Of the 36,899 McDonald’s locations worldwide, .
In 2015, there are 37000 locations worldwide in 100 countries of which 31,230 are owned by franchisees. That said, McDonald’s seemed to have lost its way.
✳️ Sales were in a prolonged slump and there were declines in US customer traffic.
✳️ Once loyal customers were leaving.
✳️ The competition was gaining ground and taking market share.
✳️ Talent market was intensely competitive
Reading a Mckinsey report, The CFO and CEO implemented a turnaround plan, and by 2018, annual revenues exceeded $20 billion, and same-store sales had risen for 13 consecutive quarters.
Initially, McDonald’s thought they were losing customers because of new trends – people moving from quick service restaurants (QSR) into more upscale dining, but that was not true; loyal customers were going to their QSR competitors like Burger King.
Their master stroke was conducting the most extensive research McDonald’s had done in its history, in ten of their largest markets, where they learned what their customers wanted (i.e Germany, Japan or the US) and why. This led to the implementation of the growth framework strategy of Retain- Regain – Convert.
In my next blog, I will delve into McDonald’s Retain, Regain and Convert strategy in more detail, asking the question how could you apply it to your business.
But for now, when was the last time you conducted a survey of your clients (past and present) to understand what they want and why?
