Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
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already announced that changes would start at the menu level. "We must and will win with our food," Mike Andres, the new president of McDonald's USA, told investors in December. These changes were immedi- ate and dramatic, aimed primar- ily at the Millennial generation, whose members seem to be more concerned than previous generations about such things as food sourcing, meat quality and customizable options. To appeal to them, the company reintroduced some higher-end menu items in April, such as premium chicken breast strips and $4.99 customizable sirloin burgers. McDonald's has also begun experimenting with a "create your taste" menu option that enables consumers to choose their own bun types and toppings. One test kitchen in San Diego offered jalapeños and guacamole as options. The com- pany has also started offering all-day breakfast options in certain markets. And Easterbrook has said that within two years all chicken served at the company's restaurants will be raised free of antibiotics. "We know that consumers care about their food," said spokeswoman Lisa McComb, in a pre- pared statement. "They want it to be real, fresh and authentic. And more than ever, consumers want to feel good about what they eat." But consumers also want their food cheap and fast, which is why McDonald's announced last year that it would be cutting eight menu items in an effort to speed up service and make room for future innovations. So adding customer choice makes things difficult operationally, according to Pa- nos Mourdoukoutas, chairman of the economics department at Long Island University, in Brookville, N.Y., who has written extensively about McDon- ald's. "The way McDonald's manages to get their prices so low is that they've created a standardized product," said Mourdoukoutas. "[Workers] take the burger out, put it in an oven, put it on a bun, and they're done," he said. "If you have different types of beef, or you make the burger in-store, there are higher operational costs. Workers need better training on how to make the burger, and cooking the burgers requires more time. All of a sudden, there's no more $1 menu; instead, there's a $5 or $6 menu." It is too early to tell whether these menu innovations will bring in new customers or how the company will deal with any adjustments that may be necessary. But this is not the first time the company has faced an identity cri- sis. In the late 1990s and early 2000s, pressure from health advocates com- pelled McDonald's to introduce salads, yogurt and similar healthier meal op- tions. Morris says the company can re- invent itself yet again. "McDonald's is such an established part of consumers' lives — whether it's from a Millennial mom who remembers McDonald's growing up or the Millennial dad who remembers playing at the McDonald's play place," said Morris. "They are a very, very, very big brand, and they will find a way to stay relevant." McDonald's is headed in the right direction with its customizable op- tions, insists Morris, confessing to be- ing a particular fan of the all-day break- fast offering. "We live in a 24-7 world, where we don't all eat breakfast at 8 a.m.," she said. "Consumers these days want to be able to eat what they want, whenever they want it." And McDonald's has something else going for it in a huge way, accord- ing to Mourdoukoutas: locations — lots and lots of locations. There are upwards of 34,000 McDonald's res- taurants around the world. Once the company hits on the right formula, consumers will have access in nearly any corner of the world. S C T r e T a i l i n g T o d a y J u n e 2 0 1 5 / S C T 31 A m o n g v A r i o u s c h A n g e s c o m i n g t o m c d o n A l d ' s : W i t h i n t W o y e A r s i t W i l l o n l y u s e r A i s e d f r e e o f A n t i b i o t i c s .