The article called “McDonald’s: When the chips are down” posted on The Economist, the world-renowned portal for economic news and discussions, explores the innovations that appeared in some of McDonalds’ outlets this year. The article presents a detailed review of the work and issues the world’s biggest international fast food company experienced lately and the crises it had to deal with.
The rapid pace of contemporary technological progress has made McDonald’s take a new approach towards its marketing system. McDonald’s starts a new chapter of its business history, becoming much more progressive and tech-savvy.
The innovation this company plans to provide from its restaurants is a touch screen that allows the customers place their orders remotely by means of composing their own burgers out of suggested ingredients which include various types of buns, sauces, meat, and vegetables (McDonald’s: When the chips are down par. 1).
Apart from the new technologies presented at the restaurants, McDonald’s is also planning to become more active on the Internet, starting a new mobile application that would allow the customers to pay by means of using their phones and such payment systems like Google Wallet and Apple Pay. Moreover, the company is planning to become more connected online and engage in communication and interaction with its customers on various social networks.
This integration of modern technologies into the fast-food business of McDonald’s seems like a valuable and timely move that is likely to bring a lot of benefits for the company, especially after the series of crises it had over the last two years. Lately, McDonald’s had to deal with scandals in China and Japan related to the declining quality of the products and ingredients sold there.
At the same time, the company lost a part of its revenues in Russia when a number of restaurants were shut down as a consequence of the economic confrontation happening between the United States and Russia at the moment.
To address its financial losses, McDonald’s has been expanding its menu and adding a variety of new items. Yet, the experts believe that this harms the company’s business and drives it away from its initial goal, which is serving good quality freshly made fast food very quickly (McDonald’s: When the chips are down par 9).
The analysts add that chasing a variety and trying to offer a wider range of choices to its clients McDonald’s risks its quality and speed. This way, the company needs either to cut down the number of items in their menus or to be prepared to lose more customers due to the declining quality of service. Besides, the new and exotic items make the final products of McDonald’s more costly, and this contradicts the company’s policy of selling low-price food.
Being the world’s largest and most famous fast-food chain, McDonald’s also becomes the target for negative PR from the side of eco-friendly activists, animal rights protectors, nutritionists, and other haters (McDonald’s: When the chips are down par. 12). The efforts of these parties negatively impact the company’s reputation as it is often viewed as the symbol of all fast food in general.
In conclusion, the article explores the ups and downs of the business at McDonald’s, its biggest challenges, and the strategies to address them. The pressure and stress McDonald’s currently undergoes require the company’s leaders to react quickly, be flexible, and employ measures that bring quick results.
McDonald’s: When the chips are down. The Economist. 2015. Web.