Tuesday, October 21, 2014

McDonald's falling

McDonald's seems to be in a peril.

McDonald's Corp reported a 30% fall in this quarterly profit. Its total revenue also fell 4.6% to $6.99 billion, according to the media. Franchisees made complaints strongly about this miserable result.

Reuters: McDonald's quarterly profit falls 30 percent

Business Insider: McDonald's Franchisees Say The Company Is Bankrupting Them

It is highly probable that recent food scandal in China has caused considerable damage to McDonald's. A couple of months ago, poor operation and hygiene environment in processing chicken were revealed with a sneak investigation into some industries by Shanghai Television.

Mail Online: Shanghai shuts factory 'supplying out-of-date meat to American fast food chains including McDonald’s and KFC'

The influence also hit Japan. McDonald's Japan published the expectation of settlement was going to be a net loss for the first time since it was listed into the stock market.

Mainichi Online: McDonald's Japan expects loss on expired meat scandal

In Japan, before the scandal McDonald's had been suffering from stasis of profit. Sarah Casanova, the CEO of McDonald's Japan who gained the seat one year ago, has proposed several solutions such as new menus and empowerment of delivery service. According to the media, Casanova is trusted by franchise owners much more compared to Eiko Harada, the ex-CEO. However, her struggle remains not successful.

Forbes: For McDonald's Japan's CEO Sarah Casanova, Problems Bigger Than Tainted Chinese Chicken

Some writers suggest that McDonald's Japan are reluctant to open the information about the safety of food. Indeed, McDonald's in USA has published some video letters to answer the questions of consumers, which is criticized by some people as being excessive.

McDonald's: What's in your beef

By the way, McDonald's UK is begun weekly special menus. This campaign is composed of 5 limited burgers, The Big Uno, Sweet Chilli Fiesta, The Ultimate Surpreme, McPizza Pepperoni Burger, and The Big Spicy Bacon. It is interesting that all of them are beef burger. Perhaps it was considered that chiken should be avoided for a while, or simply British people love beef?

McDonald's UK

As I mentioned repeatedly, I do not like McDonald's so much. Nonetheless, McDonald's has become an infrastructure in many regions. I hope its recovery and maintaining.


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