Is this the end of McDonald’s? 700 stores to shut worldwide 304



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It’s one of the biggest fast food companies in the world but it’s no longer the most popular. McDonald’s profits worldwide have taken a dive in recent years and now the CEOs around the world are scrambling to find a solution.

And this solution seems to be closing 350 under-performing stores in the US, Japan and China. This brings this year’s total of closed restaurants to 700, an alarming figure that shows just how bleak the outlook is for McDonald’s going into the future.

According to an editorial piece in Vox, McDonald’s is in big trouble and faces a range of challenges in all of its global regions. But what is happening and why?

In Europe, sales are plummeting due to the economy and high costs; in the Asia-Pacific region, there have been scandals surrounding unsanitary conditions, including a story just last week about a New Zealand woman eating into a burger and discovering a cockroach; and in the US, there is just too much competition.

McDonald’s reportedly says it will try to revive itself by “diligently working to enhance its marketing, simplify the menu, and implement a more locally-driven organisational structure to increase relevance with consumers” – is that really enough though?

It could be an uphill battle if McDonald’s wanted to stay the same way – it’s one of the biggest brands on Earth. More children know what Ronald McDonald looks like than a depiction of Jesus Christ, and everyone has seen those golden arches. Familiarity has always been a strength for the company but now it seems they’ve use their name as a crutch and forgotten about the customer somewhere along the way.

But Macca’s has tried: they’ve revamped their menu and changed items more times than you can count on two hands. They have premium options, McCafe in the drive-thru, improved service times, home deliveries and even a ‘create your taste’ service. Despite this, nothing has raised the iconic brand to where it used to be.

The latest store shutdowns were revealed to Wall Street analysts and Fortune says that although the 700 stores represent a fraction of the 32,500 or so restaurants worldwide, they show how aggressive McDonald’s is getting in pruning poorly attended locations that are dragging down its results.

Shockingly, McDonald’s has just reported an 11 per cent decrease in revenue and a 30 per cent drop in profit for the first three months of year.

So tell us today: Do you think McDonald’s will be around in the next 20 years? Does it have a future and will it survive? How can it improve in your eyes?

Starts at 60 Writers

The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. I could not care less if they went out business tomorrow..the food is disgusting and I would not put it anywhere near my mouth, as a matter of fact it might be for the best if it did go..look at how many obese Australian children there are

    3 REPLY
    • Unfortunately it is all a lot of children get to eat – lazy parents or home alone . When they took Home Economics out of schools the only ones who can cook are those who were taught at home or had the brain to do it for themselves

  2. Hope so, disgusting places anyway, and now they are halal,. Cant close these awful places down soon enough

    7 REPLY
    • I can’t imagine they would pass halal certification unless they take great pains to cook their bacon well away from other food. I also thought halal and kosher were similar in their requirements which would make cheeseburgers unacceptable.

    • Irene Keats
      If you boycott all Halal does that mean you don’t eat anything with sugar or salt in it. Or flour. Things like jam and butter and biscuits and cake and fruit juices and tinned or frozen vegs. Or. meat. Or breakfast cereals or bread. What about tea and coffee.
      People forget that just because a particular brand may not be halal certified does not mean that the ingredients they use are not.
      Also, do you drive a car or catch public transport. Where do you think the oil and petrol come from.

    • Ruth, it’s not as simple as that. Moslems have a sworn intention to establish a worldwide caliphate under sharia. The whole halal rort is part of that. I do
      My best to avoid halal certified products but will not submit to the extortion that they apply to non-moslem countries.

    • Bronwen. I do know what it is all about. But we have had Halal certified foods in Australia since the 1960’s. Why are we only now worrying about it. I personally just find it all a bit hypocritical. I beleive that if people are really fair dinkum about avoiding anything that is Halal certified then they really should look into it properly, research it, find out every brand and product that is Halal certfied and avoid everything that contains ingredients that are Halal certified.

  3. They can all close as far as I am concerned. All the Fast Food chains. They promote unhealthy eating as “normal”. How is it a “treat” to eat the crap they call food

  4. Good show!! It was absolute crap and i cannot fathom why people flock there .. must be the advertising aimed at children that people get sucked into!

  5. Bad luck for a company which has made billions out of serving up non food. Their stuff is filled with up with nasty chemicals which cause more diseases than one can imagine. Start with cancer & work your way down the scale, heart disease etc.
    Interesting to remember Charlie Bell (I think that was his name). The boy from Sydney who made it to CEO of McDonalds in the U.S. He was on record stating that their food was quite safe. He died from colorectal cancer.
    Connect the dots. Their meals are a tribute to chemistry but I’d hardly call it good.

    2 REPLY

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