McDonalds to cut 8 menu items

McDonald’s Corp. executives said Wednesday they will cut eight items from its menu in January as part of a broader effort to overhaul its service model to meet the needs of different type of customers.

In an informal discussion with Wall Street analysts, chief executive Don Thompson and McDonald’s USA president Mike Andres described a radically different service model that uses a combination of mobile and Web ordering and customization.

Executives also suggested that they will focus on improving the quality of food the quick-service burger chain offers by analyzing the ingredients in every item and focusing on the “authenticity” of its food.

“We must and will win with food,” Andres said.

Executives also said that the company’s customization platform, Create Your Taste, which it plans to offer in 2,000 units next year, is a major part of its plans.

“Create Your Taste is not a test,” Thompson said. “It’s a rolling implementation now.”

The chain is working to turn around its U.S. business. Same-store sales have fallen 2.3 percent this year, and they declined 4.6 percent in November.

In addition to cutting eight menu items, the chain will also reduce the number of Extra Value Meals it offers. Executives would not comment on which eight items and which Extra Value Meals are slated to be cut. Executives acknowledged that eight items is not many, considering the total number of items on McDonald’s menu, which has more than 100 offerings. Even executives could not definitively say how many items the chain sells.

Andres said the items that are cut will make operations easier.

“It’s not significant in terms of percentage,” Andres said. “It is significant in terms of the impact on the back of the line.”

Early tests did not result in lower sales, Andres said, suggesting that the items cut were “probably lower sellers.” He also indicated that more cuts could be forthcoming.

Andres said 80 percent of the chain’s sales are from “a very small subset of menu items.”

Executives also said the cuts would leave room for different regions to offer products that sell better in their local markets.

While executives acknowledged that they still need new menu news, in the future that would come through the Create Your Taste platform.

“We don’t need to have a big menu board to offer variety,” Andres said. “The variety is determined by the customers themselves.”

Thompson and Andres suggested that McDonald’s total service model would undergo a comprehensive change, giving customers different methods of ordering.

By reducing the menu, executives hope to reduce customer confusion and increase speed for some orders, particularly through the drive thru.

“The drive thru is about speed,” Thompson said. “You want to make sure it is delivered quickly so you’ll be on your way. You don’t get out of your car for a reason.”

But they also said they could use other ordering options, including mobile ordering and payment, as well as touchscreen kiosks that provide different methods for customers to order their food based on their immediate needs.

Customers who want to come inside, get their food and leave quickly will be able to use mobile or Web ordering to speed that process. And customers who want a better experience can order customized burgers through Create Your Taste.

“This is not exit, stage left,” Thompson said. “This is a balance between core classics and offering new menu items.”

He also said the customization strategy may help “reassert McDonald’s burger leadership.”

“Customers have expectations of eating out, and they have expectations of McDonald’s,” Thompson said. “Those aren’t always the same thing.”

Executives said they will work to once again become the top destination for families — a designation the chain lost this year amid intense competition from Atlanta-based chicken chain Chick-fil-A.

McDonald’s has already taken a big step in that direction by planning to include Cuties California clementines as a seasonal option in Happy Meals. In the days after that announcement, Twitter sentiment on the idea was 100-percent positive, Thompson said.

“That never happens,” he said.

Back

What Clients Say About Patrice & Associates

  • Clint Carpenter's standards of Recruiting are TOP NOTCH!

    To begin, Clint Carpenter was the ONLY recruiter I didn't get a generic template e-mail from. He actually took the time to look at my complete resume. In the first few days we spoke, he really took the time in our conversations to get to know what was important to me in a future job as well as what I knew I did not want. He checked in with me every day, whether it was to help coach me for an interview or just follow up if I'd gotten feedback. When I finally did get the offer I wanted, there was a snag and the paperwork with the company was delayed by 2 weeks. It was incredibly frustrating, but Clint called or texted me EVERY single day to encourage me and make sure I was ok as well as doing whatever he could from his end to help facilitate the paperwork. I never felt like I was alone in the job search process. Clint is professional, positive and you can tell he genuinely loves helping people. I would recommend him to anyone!!!!    

    Lethr' Rothert

    Clint Carpenter's standards of Recruiting are TOP NOTCH!
  • Dave took the time to get to know ME, who I am, my experience and my goals

    Dave Evens has been working with me these past couple months as I transition from a restaurant owner toward a corporate environment.  Along with this, I'm relocating from TN to NY.  I feel that he was able to capture my unique experience in the updated resume he created for me.  Dave was great with communicating options and feedback from all sources. It was a true pleasure to work with him.  While we were unable to find a good fit for me, I am blown away by Dave's approach and enthusiasm.  I found a great job, on my own, but I do not feel that reflects poorly on Dave nor Patrice & Associates. When, again, I enter my next job search, I will be sure to reach out to Dave first!

    Sincerely,

    Neil Archibald

    Dave took the time to get to know ME, who I am, my experience and my goals
  • Mike Buterbaugh is genuine and caring

    I honestly didn't know what to expect from Patrice & Associates. Upon my first time speaking with Mr. Mike Buterbaugh, I was instantly put at ease with his genuine approach to helping me find the best fit for me overall in my next career decision. Not only did he coach me on how to drastically improve my resume, he also had me an interview within a couple of days. I have never had an experience quite like this during a job search, but I would definitely give 5 stars to this company and their recruiting team. I have gained a new career that not only met my salary expectations, but balances with my personal life as well. Thanks again for your help, and although I don't plan to be on a search again, if the need arises, they will definitely be my first point of contact.

    Eula

    Mike Buterbaugh is genuine and caring
  • Patrice & Associates Video Client TestimonialsClint Carpenter was wonderful!

    I worked with Clint Carpenter on getting a job. Clint did an amazing job helping me with my resume, walking me through the process and giving me help and interview tips.  He was in communication with me everyday about what was going on and keeping me in the know. I would call on Clint again if I ever needed him!  

    Gary Summers

    Clint Carpenter was wonderful!
  • Karen Horton was there, every step of the way!

    Dealing with Patrice & Associates has been a great experience all throughout. Karen Horton was great to work with and played a pivotal role in providing me with multiple opportunities to pursue. She was there every step of the way to make sure everything was going in the right direction. She facilitated communications between me and HR departments as well. I landed a great opportunity in very little time and would definitely recommend Patrice & Associates for anyone looking to pursue new opportunities and build their career!  

    Best, S.

    Karen Horton was there, every step of the way!