Wednesday, April 26, 2017

McDonald's Gran challenge

Recently, McDonald's in Japan has launched a series of new menus as a regular lineup of hamburger.

McDonald's (in Japanese)

These are "Gran Mac," including Gran Clubhouse, Gran Teriyaki, and Gran Bacon Cheese. Each of them composes bigger beef patty than a regular hamburger. The price is around three USD.

McDonald's seems to attempt to raise customer transaction. So far, McDonald's has been recognized as a franchise which provides the most inexpensive hamburgers in Japan. Until some years ago, it offered cheap burgers less than one USD.

But as the trend of deflation has been finished by Abenomics, McDonald's had to change its strategy. Now it is struggling to improve the brand image. Some years ago, it supplied a series of hamburgers with ten USD for one day as a campaign.

My past entry: Quarter Pounder Jewelry, challenge of McDonald's

However, most customers still do not demand McDonald's a good hamburger for raised cost. Consumers who want luxury hamburgers are willing to go to a competing restaurant, such as Fire House, or Kua Aina.

I do not believe McDonald's will change the customer's behavior to want cheap hamburgers. Rather launching a new brand would be better for the Holdings.

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