McDonald's Future Mistake

[MA-Caver]

I agree with these guys that the worlds largest food chain is about to jump the shark with this marketing idea of up-scaling their restaurants to a more cozy relaxed atmosphere... kinda like mmm Starbucks.

http://finance.yahoo.com/blogs/daily-ticker/does-going-upscale-sense-mcdonald-170612393.html
In an effort to revamp its image and attract new customers, McDonald's is going upscale. USA Today Monday got a sneak preview of a $1 billion plan to upgrade restaurants by installing flat-screen televisions, bringing in wooden tables and toning down the loud color scheme. That's pushing the chain into "looking less like McDonald's and more like Starbucks," as reporter Bruce Horovitz wrote.
Is this a good idea? Does it make sense to tinker with the formula that has achieved market saturation, global domination and positive results in good times and bad? Should McDonald's be trying to pull customers from more expensive chains? Can McDonald's really hope to turn itself into a coffee house? As my Daily Ticker colleague Aaron Task and I discuss in the accompanying video, getting into Starbucks' face and market space might be a dubious proposition.

They were spot on in that with McDonald's you get what you expect every time you walk in no matter WHERE you are. That was the secret of their success. That you didn't have to worry about the food tasting different or anything else related to the one in your home town. Others followed suit of course and were successful, Burger King, Wendy's, et al.

Yet moving up to a quieter place is going to alienate a certain class of people. Call 'em what you want, trailer park, rural farmers, projects, whatever... also the average hard-working everyday family in the lower to mid-middle class sector of the population.
When I worked there that was the bulk of the customer base, that and folks coming off the freeway which was within spitting distance of our front door.

They plan to spend 1 Billion dollars over the next few years with this "social experiment"... hmm seems to me that a better choice of what to do with that money allocated could be thought of.

 

[crushing]

This reminds me of bland fizzy yellow beer maker, Miller, trying to sell people people on living the "high life" with the "champagne of beers."

 

[Bob Hubbard]

McDonalds food is constantly scoring at the bottom of the taste pile. Their formula is based on rapid turn over, hence those seats that feel great for a few minutes, but hurt your *** after about 15 minutes in them. Get your food, eat, and get the hell out IS their formula.

Now they're putting in comfy chairs so people linger longer? Chairs that are harder to maintain when kids spill shakes and ketchup on them? Or pop holes in them?

Ehh...money down the hole IMO.

 

[granfire]

I have seen a lot of Mickey D's that had a rather tasteful interior. If they took over from another estabilshment or were build that way, no idea...

I also think that it depends on who owns the joint. There are certainly big differences in looks from place to place.

(but the coffee is about as good as starbucks, at a fraction of the cost, and the soft serve isn't bad either)

 

[Nomad]

This reminds me of bland fizzy yellow beer maker, Miller, trying to sell people people on living the "high life" with the "champagne of beers."

Anyone remember how "New Coke" went?

 

[MA-Caver]

Anyone remember how "New Coke" went?

They mentioned that ... and it nearly tanked Coca-Cola had they not immediately switched back to the original formula.
A lesson learned. Which probably is why the KFC original recipe is one of the industry's closest guarded secret... they lose that and they just might as well call it Any Ole' Fried Chicken and not KFC.

I imagine that there's always some new guy with a "brilliant" idea on new and improved in nearly every company ... sometimes it does work, i.e. KFC's grilled chicken ... often times if especially it's an institution it'll hurt the company.
Pizza Hut stayed with the tried and true formula. Domino's nearly was killed by some stupid employee's and they revamped their whole pizza formula and managed to skirt the unemployment lines by a hair. Funny how nobody paid attention to Taco Bell's "it ain't beef" slander though they spent a couple of million on an ad campaign promising that it was... they still didn't lose any business and thus, blew it off. But I betcha they were sweating in the board room for a little while though.

Basically if it ain't broke don't dare go and try and fix it. How much more simple can you get?

 

[WC_lun]

They've already been doing some of the things listed in area McDonald's here. On the few occasions I've had to visit them, the clientelle didn't seem to notice one way or another.

 

[Phenix_Rider]

They've already been doing some of the things listed in area McDonald's here. On the few occasions I've had to visit them, the clientelle didn't seem to notice one way or another.

I've seen it too. Not in philly though...

Didn't notice much change. Same old seats, just added a few big TVs. Until they add beer to the menu, not much will happen. Their *ahem* largest customers act the same as always. And they still atract bored teenagers with $2 in their pocket. The occasional suit looking for free wifi might be McDs biggest claim from the change.

 

[MA-Caver]

I've seen it too. Not in philly though...

Didn't notice much change. Same old seats, just added a few big TVs. Until they add beer to the menu, not much will happen.

Well you can go to Paris to a McDonalds and get a beer and not no beer in a paper cup but a glass of beer! :lol:

 

[Touch Of Death]

It is already happening. The Mc Donald's near me already has a section with easy chairs and small coffee tables made complete with the coffee machine. I think its a good idea. Business men and women can have a little meeting over breakfast or coffee, or both. I like to sit there, sometimes, when its not being used. In short, I think you guys are all nuts. Mc Donald's will dip in to the morning coffee crowd come hell or high water; mark my words.
Sean

 

[Steve]

Anyone remember when Jack In The Box "blew up" the clown and changed their brand to Monterey Jack's? Lasted about a year, IIRC and was an unmitigated disaster.

Worst thing Shakey's Pizza ever did was to get rid of the dixieland banjo bands, the old film projectors and the picnic style seats. Since they cleaned up and patterned new locations after the Pizza Hut model, they've practically disappeared. I have some very fond memories of Shakey's Pizza from the '70s.

The local McDs have been remodeled and they look nice. No easy chairs, but the design is updated and looks good. As long as they remember what they are and don't lose sight of that, they'll be fine.

 

[Touch Of Death]

Anyone remember when Jack In The Box "blew up" the clown and changed their brand to Monterey Jack's? Lasted about a year, IIRC and was an unmitigated disaster.

Worst thing Shakey's Pizza ever did was to get rid of the dixieland banjo bands, the old film projectors and the picnic style seats. Since they cleaned up and patterned new locations after the Pizza Hut model, they've practically disappeared. I have some very fond memories of Shakey's Pizza from the '70s.

The local McDs have been remodeled and they look nice. No easy chairs, but the design is updated and looks good. As long as they remember what they are and don't lose sight of that, they'll be fine.

providing a business section isn't like they changed they changed their name to O'Donaldo's LOL
Sean

 

[Steve]

providing a business section isn't like they changed they changed their name to O'Donaldo's LOL
Sean

I'm not sure I understand your point, Sean. The change in Jack In the Box's name was their attempt to upscale their chains as a new, hipper brand. It's less about changing the name and more about losing sight of your customer base.

This reminds me of the thread a few weeks ago about how WalMart was losing money with their more expensive green products. The consensus at the time was that this is because people looking for quality, green, organic products aren't looking for them at Wal Mart.

And people looking for good coffee, baked goods and a pleasant ambience don't look at McDonald's.

 

[CoryKS]

Well, I think there are a couple of things going on here.

One is that the old format with the bright plastic furniture is tacky, and it draws the same sort of middlebrow snobbery that Walmart deals with. The food is cheap and appeals to the common palate so it's very useful as an object of scorn for those who wish to present themselves as superior to the unwashed masses.

Another is that they are more frequently being scapegoated for the rise in childhood obesity, and want to move away from the image that they are marketing to children. Hence the more upscale look.

I've been in some of the renovated stores and they still retain that McDonald's feel. As long as they don't start messing with the recipes, they'll be just fine. Personally, I don't ever think they'll completely get away from their "kiddie restaurant" legacy but as long as people keep having children those kids are going to want a McDonald's hamburger.

 

[Touch Of Death]

Not to mention the breakfast crowd really isn't filled with children. It's good coffee and hot food which is something Starbuck's doesn't offer.
Sean