McDonald’s (MCD) has had four years of traffic declines, resulting in 500 million lost transactions since 2012. To win back those customers, the fast food giant is spending about $1.7 billion in 2017. “We have to attract more customers, more often,’’ said Lucy Brady, the company’s senior vice-president for corporate strategy and business development. “We’ve lost hundreds of millions of visits from our core customers.” Here are the four main aspects the company is concentrating on:
1. Menu Innovation
Chris Kempczinski, McDonald’s USA President, disclosed that McDonald’s test of its “Signature Sandwiches” — customizable and more upscale burgers and chicken sandwiches — will roll out later this year and investors can expect the company to step up its menu innovations in the U.S.
2. Store Renovations
McDonald’s is ahead of schedule in refranchising 4,000 restaurants by the end of this year. The company will update its stores and will be adding self-service ordering kiosks and table service to some of them, bringing the total of modernized stores to 2,500.
3. Digital Ordering
To keep up with modern customers, especially the younger generations, the fast food giant will continue to expand its mobile order and pay platform. While falling behind on this aspect compared to its competitors, the company is expected to launch the service in 20,000 restaurants by the end of 2017.
4. McDonald’s Delivery
More companies are also gearing towards delivery, and McDonald’s is no exception. More than 3,500 of the chain’s restaurants, primarily in Asia and the Middle East, offer delivery. The company wants to implement this in the United States and is currently testing out several models, both in-house and via third-party providers.
“Through enhanced technology to elevate and modernize the customer experience, a focus on the quality and value of our food and redefined convenience through delivery, we have a bold vision for the future and the urgency to act on it,” stated McDonald’s CEO Steve Easterbrook. “We are moving with velocity to drive profitable growth and becoming an even better McDonald’s serving more customers delicious food each day around the world.”