McDonald's Fast Food has Slowed Down
A seismic shift
McDonald’s is seriously worried about tough competition from so-called upmarket “fast-casual” chains that offer “healthier food” and more sophisticated service. There is little doubt that the fast-casual segment is currently outgrowing the fast food sector. There is a permanent seismic shift in the way people perceive and consume food. This shift fundamentally undermines the core business model of McDonald’s.
There is little doubt that McDonald’s is suffering from an identity crisis. When everything is said and done it comes down to its basic Big Macs. The core customers identify the Golden Arches for cheap and quick food. Yet during the last decade, McDonald’s has tried to appeal to more finicky eaters who have moved the expectations to high-quality, while still demanding cheap and fast. It is clear that McDonald’s food story is no longer aligned around the consumer’s definition of quality and value. Literally and figuratively, consumers have become a moving target for the food industry.