Disney Case

McDonald’s is struggling with decreasing in sales growth, a 1.8% decrease in sale growth in October 2012. Decline in sales growth results from customer shifting their consumption taste, and high competition in the fast food industry. The trend for now is shifting toward healthier and high quality foods. Customers between ages 19-21 years olds decreased their visits to McDonald’s by 12.9%. Customers now are more concerned about calories when comes to food choice, and McDonald is rarely related to healthy and fresh. The competition in fast food industry are very high, existing fast food chains such as Wendy’s and Burger King.

First option for McDonald’s would be to change their menu, be more appealing to millennials by providing more healthy foods. Second option for McDonald’s would be to acquire a restaurant chain that is already a good representation for healthy and fresh food, such as Subways and Chipotle. Second option for McDonald’s would be to acquire a restaurant chain that is already a good representation for healthy and fresh food, such as Subways and Chipotle. The customer is willing to for high quality food, if McDonald’s can convince them it can be both fast and healthy. Third option for McDonald’s would be to decrease their menu diversification and focus on food quality, because it can’t be all thing to everyone at same time.

I would recommend McDonald’s management to make changes in their menu, it would be more benefits to McDonald’s. Since McDonald’s already had a relatively large customer base and market size, make changes in menu can easily target existing customer.