The global fast food giant McDonald’s Corp’s new chief executive announced the reorganization of the business into new units, sale of restaurants to franchisees and cutting costs – in a bid to turn the fast-food chain into a “modern, progressive burger company.” With 36,000 outlets in over 100 countries, the chain has been under pressure from falling customer traffic, with sales falling 2.4 percent in 2014 to $27.4 billion.
McDonald’s currently organizes its business around major geographic markets: the United States, Europe, and Asia/Pacific, the Middle East and Africa.
It faces rising competition, not only from traditional rivals like Wendy’s and Subway, but from higher-end chains like Chipotle, Panera Bread and Shake Shack, which went public in January by positioning itself as a burger chain with better-quality ingredients.
In January itself McDonald’s announced selection of Steve Easterbrook as the chief executive, replacing Donald Thompson, who was unable to reverse a trend of sliding sales.
Easterbrook announced, “The reality is our recent performance has been poor. This is a global turnaround. We have to modernize our approach and run the system differently. There are perceptions and there are misperceptions out there. Consumers tastes are changing… and therefore we’ve got to be seen to be moving with them.”
Good Luck for the changing dynamics. We just hope that our favourite Aaloo tikki is never changing 😉