The increase with Egg McMuffins has made the prediction that on average, “All-day breakfast will drive established-store sales by about 1.5 percent in the current quarter, and add about 1 percent in sales over the next 12 months” (Bomkamp). The sales of food have seen an up-down view for revenue, during the first and second quarter McDonald’s has seen a narrow decline among sales. With the new idea of breakfast in place, McDonald’s is expected to have a better quarter for this upcoming record among sales. As far as selling their products, McDonald’s has used the idea to attract the correct media outlets. For example, Nickelodeon and other children’s television channels are highly influenced by McDonald’s and their happy meals.
The menu at McDonald's typically consists of hamburgers, chicken sandwiches, salads, drinks, shakes, and a recent influx of healthier alternatives. McDonald's also is widely known for their breakfast menu, which consists of sandwiches, pancakes, French toast, hash browns, and breakfast drinks. Since McDonald's appeals to such a wide audience, it must constantly re-evaluate its menu depending on feedback and market research. McDonald's expends considerable resources to update its menu and introduce new products in order to be more in tune with its target audience (The Times 100). McDonald's also focuses on the perception of value within it line of products and therefore takes care to price its menu items accordingly.
Some times the innovation is well advertised, but other times they are designed so that customers will never even notice (Ritzer, 2004). This paper examines the effects that optimal product positioning strategies have on innovation and creativity for retail outlet locations in the fast food industry. The global fast food powerhouse McDonalds has been the biggest marketer of fast food since 2004, with over 31,000 restaurants in 120 countries, brining in 47 million customers per day (Ritzer, 2004). The relationship between profits and product differentiation reveals that McDonalds is better than most fast food chains at competing locally and globally in large market areas. Ritzer defined this as McDonaldization which is a process by which the principles of fast food restaurants is to dominate more and more sectors of American society as well as the rest of the world (Ritzer, 2004).
The first strength of McDonald’s has been their product strategy. Throughout the past three decades they have simply been a hamburger and fries Restaurant. Growing customer wants and needs along with increased competition has forced them to alter and improve their menu to better fit the environment. Factors such as growing competition and consumers becoming more health conscious have forced them to make these changes. Today McDonald’s offers a wide variety of products that consist of 26 items.
Have you ever wondered how the business empire of McDonalds was started? With over ninety nine billion served, it was started in 1940 in San Bernardino, California. It was started off as just a Bar-B-Q that served just twenty items. Its first mascot was named “Speedee” They eventually realized that by setting up their kitchen like an assembly line that they could be much more productive and get their food done faster, with every employee doing a specified job; the restaurants production rate became much higher. A milkshake machine vendor came into their small restaurant one day, his name was Ray Kroc.
“In 2014, Burger King reported a like-for-like sales increase of 3.6% in America and Canada compared with a decrease by 3.3% of comparable sales at McDonald 's. That said, sales at an average McDonald 's in America are still roughly double those of an average Burger King,” (Melnick, 2014). Overall, Burger King will have to drastically improve sales over multiple years to catch up with industry leader
Since it’s foundation in 1954, McDonald’s has satisfied the customers with its main product, hamburger. With having more than 35,000 restaurants located in US, Europe, Canada, Asia Pacific, Meddle East and Latin America; it serves 52 million customers daily (McDonald’s 2006 Annual Report, 2007). 1954 was the year that reshaped the concepts of fast food industry. Fifty two year old milk shake salesman, Ray Kroc envisioned the idea of creating a hamburger product and delivering it to customers in very short time; when he visited his client McDonald’s. By that time, McDonald brothers were operating a restaurant which sold burger, French fries and milk shakes and was efficient but was limited to small scale operation.
The war food is still heating up between McDonald’s and its competitors like Burger King, Yum! Brands, Wendy’s and Starbucks restaurants where food and drinks are prepared to serve the people prefer any kind soft of dine-in. These restaurants range from simple eating place where food is aimed to normal people for an affordable price to expensive dining places serving special food and wine to higher classes depending on their needs or culture where they’re operate and working in. McDonald’s or any businesses development is going up along with some potential threats from both outside the organization including economic, political, legal, social, technological and environmental factors and both inside such as human, management, information system
Although, they are a far second, the changes in Burger King have worked. The company has posted a 28% increase in operating profits, to $77 million, for the year ended September 30, 1994. Helping performance was the sale of 211 company-owned stores during the year to franchisees, which garnered $64 million. The continued performance improvement has impressed lenders, who have committed to issuing more than $500 million in loans and credit deals to franchisees for capital investment (Nation's Restaurant News). All this has made Burger King executives happy, but Burger King did experience another set back as James B. Adamson resigned in 1995.
With rights to set up McDonald's restaurants, he set up his first franchisee outside of Chicago and slowly expanded into other states. By 1959 there were 68 new McDonald restaurants, bringing the total to 102 locations. The development in the use of automobile contributed greatly to McDonald's achievement. Success only continued due to the company's clever marketing skills and being able to meet the customer’s demand. In 1961 Kroc paid the McDonald brothers $2.7 million to make the restaurant business his own and sought to make McDonald the number one fast-food chain.