When was the last time you ate at a McDonald’s? Long the staple of families, teens, and college students, sales at the world’s largest restaurant company have been in a slump. For U.S. locations (about 40% of its restaurants), sales at McDonald’s restaurants have been flat or declining for much of the past year.
According to data compiled for The Wall Street Journal, the problem seems to be one of age – not age of stores, but age of its customers. A large portion of McDonald’s sales have traditionally been to customers age 20 – 30. However, that age group is now in search of healthier, fresher fare and has been switching their loyalties to restaurants such as Chipotle Mexican Grill, Five Guys, and Panera.
Although McDonald’s has introduced new, healthier McWrap sandwiches and is increasing digital marketing to help win back millennial customers, there are more choices than ever for fast-food patrons. A decade ago, there were more than 9,000 fast food restaurants in the U.S., plus another 14,000 McDonald’s; today, there are nearly 21,000 fast food restaurants competing with 35,000 McDonald’s. That’s a lot of competition for the same dollar.
Group Activities and Discussion Questions:
- Poll students about their fast-food eating habits: What restaurants do they frequent? Why?
- Next, ask students when was the last time they ate at McDonald’s? Why?
- Discuss the factors that millennials use to choose a fast-food restaurant.
- Divide students into teams. Have each team develop a list of criteria that they (as millennials) use to determine which fast-food restaurants they frequently eat at.
- Next, have each team select five of the criteria and create a plan for McDonald’s to use to attract more millennials.
Source: Wall Street Journal