The Death of McDonald’s! Not really, but very close.

Free McDonalds Gift CardLast quarter McDonald’s reported a 21% slump. In January the CEO steps down and the new one is slowing down on building new branches.

It happens all the time, and companies slump and come back. This is how business is. This is how the whole life is.

In case of McDonald’s though there’s something different.

When McDonald’s is mentioned you can not help it but visualize a burger, can you?

The problem is, burger itself is the reason, in my personal opinion, that McDonald’s is sinking the way it is doing right now.

Half a century ago people didn’t know any of what young school kids now know about saturated fat and cholesterol. This is when the burger fast food business had the suitable environment to flourish. Busy people, working moms with little time to spend in the kitchen, and cheap fast food they can pick on the way to work … what else could McDonald’s wish for?

Now things are different. The public is aware of the consequences of consuming unhealthy fast food. More and more people are pulling away towards healthier choices, which are also available in fast foods restaurants.

This last fact might in part explain the decision of Burger King to fuse with Tim Hortons. At Tim Hortons there are soups and other healthier alternatives to the once popular burger industry.

In my personal opinion, if the new leadership of McDonald’s wants to make through these tough times and stay around longer they have to focus on the “healthy food” line and advertise it like crazy.

The current emotional “about you” thing might not work long term if it does any good short term at all. The problem is not another burger competitor. The problem is the competition between burger and unhealthy fast foods at one side vs. the healthy alternatives that are growing and expanding to push the burger empire off the top it once dominated.

 

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