McDonald's Case

Over the past few years there has been a growing concern about the quality of fast food and its relation to obesity and heart disease. The release of the documentary “supersize me” and the media’s constant disparagement of fast food did little to help the industry’s cause. Popular TV shows like “dr. oz” and “the doctors” further continue to affect tastes and preferences within the population, not only in regard to health concerns but also the image related to lower and working class people’s consumption of fast food and the egotistical need to dissociate from that image.

Moreover, another growing trend is the move of customers to non-burger fast food chains such as subway, KFC and pizza hut, with these chains experiencing more rapid growth than their burger chain counterpart.

While the industry may be experiencing a decline in growth, the main strength of the industry in relation to the speed of obtaining their product or the “fast” in fast food is certainly not losing its appeal. It is estimated that increasing the drive through efficiency by 10% increases sales by 54000$. In addition, many vendors have capitalized on the concept of “fast” easting with delis, prepared foods and microwavable food being in demand in the market.

Since “fast” high quality food is now the main driving force of consumers, a new shift is seen in the industry with the emergence of “fast casual” dining. These restaurants offer more upscale food at a less discounted price than their traditional fast food counterparts, but have found that consumers are willing to pay a little more for higher quality food, served quickly with a more comfortable environment.

It is clear that while consumers are price conscious, they place higher priority on nutritious food, more comfortable settings and quality and speed of service. If McDonalds is to survive the coming years it must address these concerns and shift its marketing strategies to address