What we can learn from Mcdonalds

Two Things the Foodservice Equipment and Supplies Industry Can Learn from McDonald's October 28, 2008
It was interesting to learn last week that McDonald’s continues to be somewhat recession-resistant. In looking more closely at the world’s most famous quick-service restaurant, though, I think there are some lessons everyone can learn about building a business that sustains growth.
It’s All about the MenuMcDonald’s core menu items – burgers, fries and soft drinks – remain constant. Despite this, McDonald’s continues to tinker around the edges. Adding chicken items, tinkering with breakfast and augmenting its beverage lineup with such offerings as sweet tea, allows McDonald’s to remain true to its roots but incrementally broaden its customer appeal. And it allows the chain to refrain from becoming stale.
Managing the fringe to the benefit of the whole is a true art and requires significant effort. But no matter what your role in the foodservice industry, it’s something that you should consider doing to help deepen your customer relationships. Listen to what customers have to say about their businesses and add those products or services that mesh nicely with your core.
Value Items Are of No Value Unless They Generate a ReturnThe value menu is a McDonald’s cornerstone and a component of their business that many believe drives the chain’s success. Still, as this Ad Age article points out, rising commodity costs have made it very difficult for McDonald’s franchisees to turn a profit on such items as the wildly popular double cheeseburger, which the chain sells for $1.
As a result, McDonald’s management is looking at various ways to restore the profitability of the double cheeseburger, once a personal favorite of mine. Many business leaders would easily develop an emotional attachment to an item that’s contributed to their company’s success in the way the double cheeseburger and the value menu have for McDonald’s. While I am sure they derive no pleasure from taking such steps, management understands the need to do so.
Take a look at your business. Do you understand the costs? Are your value items driving the same return they once did? If you don’t know or are uncertain, use this downturn to develop a better understanding of your costs and devise a strategy to make sure your value items provide value to both you and your customers.
That’s what McDonald’s has taught me during this highly volatile economic climate. What have they taught you?