Sunday, April 21, 2013

Mc Donald's Logs Weak Sales, Pushes Discounts

imageA few weeks ago I blogged about McDonald's poor customer service. There were many reasons cited for the influx of complaints, but to add to McDonald's woes sales have been declining, globally. In order to boost sales McDonald's is pushing lower cost meals, coupons, and new menu items. Although this is usually an ideal strategy, most McDonald's stores are owned by franchisees. This poses a serious problem, generally speaking the franchise will have to pick up the tab on the discounts. The article cited the dollar menu barely breaks even for the operators of these locations.  Still, to improve sales the company is in the midst of rolling out its new customer order system in a bid to speed up service, and force employees to pay more attention to the customers. McDonald's executives firmly believe this is a necessary strategy as the firm has to steal customers from its rivals in this economic environment.



http://online.wsj.com/article/SB10001424127887323809304578432470230234316.html?KEYWORDS=Mcdonalds+logs+weak+sales

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