McDonald’s Corporation (NYSE:MCD) strength in its home market continues to bow down. Seeing reluctance of U.S consumers towards its food items the world’s largest fast food chain is cutting down its stores strength, making the first trimmed down in more than 40 years.
According to Associated press report, the trimming of restaurants in U.S is more than the planned opening of new fast-food chains. McDonald’s didn’t give the details on how many stores it would close, however, representative of the firm said that the closures would be minimal.
In U.S other restaurants like Panera Bread, Chipotle and Starbucks are continue to pose challenges for the fast-food giant. The firm’s sales in U.S are on the steeper side for the past five years.
After seeing worst declines in the past few years the company’s former CEO Don Thompson stepped down in March, giving its charge to Steve Easterbrook. The new CEO after taking a charge implemented a turnaround plan, which dictates a new organizational infrastructure, cutting nearly $300 million costs per year and trusting more on new fast-food chains.
“Customers want to personalize their meals with locally relevant ingredients. They also want to enjoy eating in a contemporary inviting atmosphere. And they want choices: choices in how they order, choices in what they order, and how they’re served,” Thompson said.
But overseas market marks a healthy revenue source for the firm. It seems that firm relies on overseas market for its growth in the future. Looking ahead the firm is opening hundreds of restaurants in Europe and Asia, due to better revenue growth in these parts of the world.
France is one of the company’s strong sales driver. The firm has 1,200 restaurants in the country and further the firm is spending 200 million Euros to increase its exposure in France. Customers can book their orders online, with high-end offerings like an elevated McCafe and a blue-cheese burger in menu.
While in Australia the order is prepared in front of the customers, which features fresh ingredients like pineapple and guacamole.
But that kind of ideas doesn’t merely true in America, where the firm tried to do something innovative but struggled to maintain it as the company’s restaurants strength is more, it isn’t possible to implement new ideas at each store due to cost related issues.
