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McDonalds Plans to Enhance Sales Through Products and Convenience

02/05/2019

Addressing investors, the president and CEO of McDonalds Corporation, Stephen J. Easterbrook highlighted improvements during the past year that have contributed to a 4.4 percent increase in global same-store sales. These include introduction of home delivery and launching a program of fresh beef for burgers cooked to order. McDonalds also will increase sales through introducing breakfast menu innovations and "digital engagement". If this includes ordering ahead, "digital will be beneficial". The kiosks installed in many restaurants require considerable work to improve speed and convenience other than for simple orders.

Reducing waiting times at the drive-through window will be a significant development area for 2019. Research has shown that service times have increased progressively over the past five years. The company plans to enhance service by applying lessons learned from trials conducted at designated locations.

McDonalds is under pressure from competitors that innovate at a rapid rate and copy beneficial introductions at McDonalds. The Company and its franchisees are facing higher labor costs without evident introduction of mechanization and automation. Disaffected franchisees have formed their own organization to press their concerns and to pressure corporate management to make meaningful improvements