McDonald’s has announced it is setting aside the next 18 months as a period not only to develop the normal lineup of new menu items but also to rebrand itself.
The chain told investors this week it is taking the next year and a half to regroup after sales continued to slide in the recent quarter and such competitors as fast-growing Chipotle Mexican Grill seem to be leaving the burger leader behind. In McDonald’s case, however, the repositioning will not necessarily involve the typical hallmarks of a rebrand, such as a new logo or total design overhaul, but will instead focus on reworking the basics: better value, service, marketing, and menu.
The goal is to become a “more trusted and respected brand,” said Don Thompson, McDonald’s chief executive, on Tuesday’s earnings call. The McDonald’s brand, eroded over the years by service problems, dietary concerns, lack of blockbuster product launches, and recent employee-pay issues, is not one many consumers feel overly positive anymore. According to Infegy, a company that analyzes social media, 38 percent of online conversations about McDonald’s over the past year have been negative.
As Thompson has said in the past, the McDonald’s renaissance will encompass a simplified menu, remodeled restaurants, and such modern amenities as Wi-Fi. The company will also open more restaurants and expand its digital efforts. Core products, such as the Big Mac, Egg McMuffin, and fries, three items that account for about 40 percent of sales, will be at the center of the food efforts. In addition, new menu items at McDonald’s will be focused around “premium” beef and chicken items, breakfast food, and coffee and blended ice drinks.
