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Auggie

(31,125 posts)
Thu Jan 23, 2014, 03:14 PM Jan 2014

McDonald's sluggish growth outpaced by Wendy's

time.com / 1-23-14



Of course, even with a few years of sluggish growth, you’d rather be in McDonalds position than Wendy’s, all else being equal. McDonalds yearly sales swamp those of Wendy’s—$27.5 billion to $2.5 billion. But Wendy’s has been growing its sales and profit, while McDonalds performance has been stagnant. Here are three reasons why this one-time also ran is nipping at McDonalds heels:

1. Premium Products: With low income folks struggling in today’s economy, fast food chains have to go after the more affluent in order to achieve sales growth. Wendy’s has done this by offering a series of limited-time only premium products, like the bacon cheeseburger on a pretzel bun, and the bacon portabella melt on a brioche bun. These premium products can grab the attention of more discerning eaters and get them hooked on Wendy’s permanent menu items.

2. Service: McDonalds has tried its own series of new menu items, including Premium McWraps, Egg White Delight McMuffins, blueberry pomegranate smoothies, just to name a few. But the slew of new products significantly slowed down service times as workers struggled to deal with assembling them quickly and efficiently. A recent study by the trade publication QSR magazine did a study of how long it took the average customer to make it through various fast food restaurants drive through service. The result? McDonald’s experienced its slowest average speed of service in the history of the study.

3. Better Instincts: If your new products are going to slow down service, they’d better be a hit with customers. Most of McDonald’s new products from its Fish McBites to a new offering of chicken wings, fell flat. Wendy’s, on the other hand, put all its chips in a few products, most notably the pretzel bun, which were a huge hit. At the end of the day, success in fast food is going to be primarily about anticipating what will resonate with your customers.



Read more: McDonald's and Wendy's Battle in Fast Food Wars | TIME.com http://business.time.com/2014/01/23/mcdonalds-and-wendys-battle-in-fast-food-wars/#ixzz2rFbCgNVN

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McDonald's sluggish growth outpaced by Wendy's (Original Post) Auggie Jan 2014 OP
here I thought it was onethatcares Jan 2014 #1
I think Wendy's and Jack.. sendero Jan 2014 #2
Those reasons have the earmarks of a company too big ... Auggie Jan 2014 #3
Waiting for the DU food snobs to say 'low grade dog food' at some point! nt Logical Jan 2014 #4
it IS low-grade dog food OriginalGeek Jan 2014 #5
You win! nt Logical Jan 2014 #7
This was what I thought as well Johonny Jan 2014 #6

sendero

(28,552 posts)
2. I think Wendy's and Jack..
Thu Jan 23, 2014, 04:12 PM
Jan 2014

... have nominally better food than McDs. For example, the buns on their burgers doesn't resemble foam rubber, the meat is a bit more like beef than amorphous blob.

That said I don't eat at any of them if I have a choice.

Auggie

(31,125 posts)
3. Those reasons have the earmarks of a company too big ...
Thu Jan 23, 2014, 04:15 PM
Jan 2014

Propensity to avoid any risk.

Too many layers of management.

Decisions targeted to maintain stock price, not quality of product

Too much research, not enough instinct.

OriginalGeek

(12,132 posts)
5. it IS low-grade dog food
Thu Jan 23, 2014, 04:25 PM
Jan 2014

actually, I wouldn't feed it to my dog. But I eat it. I had a couple of Wendy's new 99 cent chipotle jalapeño burgers for lunch today. It wasn't terrible but I'm not kidding myself into thinking it's "food". It was filler til I get home for supper.

then again, my cousins once talked me into eating a Milk-Bone so what do I know?

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