Mcdonald's Case Study

1) How are customer tastes changing in the fast-food industry? What impact do these changes have on McDonald's?

Customer tastes all around the world have significantly changed over the past few years. People have become more careful when choosing the food and much more concerned about healthy diets than ever before. The dissatisfaction with the food quality in fast food restaurants is increasing among both, young adults as well as baby boomers. Statistics have also showed that Americans are eating out less than before due to the recession.

However, time is still very important for most people; that’s why drive-through windows account for 65% of sales. The popularity of non-hamburger sandwiches is growing as well. Consumers can now choose between a huge variety of prepared meals and sandwiches that are available in supermarkets, gas stations and convenience stores. Another tendency in the fast-food industry is the increase in the fast-casual segment, which includes such restaurants as Panera Bread and Boston Market. They feature a more upscale environment with faster preparation than traditional restaurants and better quality food product than quick-service. Statistics have showed that the quick-service growth is significantly lower than the fast-casual segment. Consumers nowadays are looking for quick good quality food, and they are willing to sacrifice some of the time value as well as discounted prices for comfortable environments.

All the aforementioned changes in customer tastes have resulted in the sales and profit decline for McDonald’s. Many fast food restaurants had to discount many of their food items. However, consumers, while price conscious, have placed a demonstrated premium on comfortable environment and some increase in nutritional value. Thus, it’s critical for McDonald’s to address these new trends by adapting to customers tastes, renovating restaurant design and changing their marketing strategies.

2) How well are these changes in customer...