War escalates in the most popular branch of focus, fast food, with «King» McDonald’s slowing down the recent quarterly increase in chain sales, while competitors, such as the Burger King of Restaurant Brands International, gain ground.
Business Insider brings as an example a «standard», middle-class American household, with father, Peter Lauers used to go to McDonald's to buy dinner for his family on busy weekdays.
A few years ago, however, Lauers, based in Michigan, who runs a mobile app development company, observed increasing prices for Big Mac and Quarter Powders.
The chain also offered fewer offers he liked, such as McDonald’s former offer «Buy one, take one for $1» In burgers. He even started maintaining a spreadsheet to monitor price changes in local McDonald’s.
These days, Lauers said, he and his family don't go that often.
«Must be something special.», said Lauers, adding that his family's visits to McDonald's are «Maybe a quarter of what we used to do.».
Lauers is among customers looking for places other than McDonald’s to buy burgers, comments Business Insider.
The changing ranking in the industry's competition comes as the economy has gotten «shape K» In recent years, a situation where high wages have consistently spent while low wages have reduced costs.
This scenario has prompted customers to look for value, and fast food chains that provide it see the benefits.
McDonald’s is still the largest fast food chain by far, with sales to the entire $139 billion system last year.
Burger King, meanwhile, had sales of $29 billion at the same time and Wendy’s reported $14 billion.
McDonald’s CEO Chris Kempczinski said on a video conference about the results last week that the chain «She simply did not perform her duties at the level she needed», especially with regard to the circulation of the last value menu focused on items that cost less than $3 each.
McDonald’s refused to comment beyond the CEO’s recent statements.
The economy also plays a role, said RJ Hottovy, head of analytical research at the location analysis company Placer.ai.
McDonald’s customers are people with lower income than many other restaurant chains, Hottovy said, meaning many have reduced their visits as petrol prices have been launched and the prolonged effects of inflation have hit their budgets.
«It's a difficult environment.», said, «especially in the burgers field».
All this makes hungry Americans wonder: Is there a better place to eat a burger?
McDonald’s is still the largest fast food chain by far, with sales to the entire $139 billion system last year.
«I'd rather go to Burger King»
McDonald’s blow comes amid the rise of its historic competitor, Burger King, who has invested significantly in its restructuring with restaurant renovations, technology and value-oriented agreements.
In February, he predicted he would spend $700 million on improvements by the end of 2028.
Marketing was also part of this effort. During the Oscars in March, Burger King aired many advertisements admitting her mistakes, firing her mascot, King, and advertising an improved Whopper recipe.
Burger King has also benefited from Wendy’s falls, which reduced its dividend last week to support recovery efforts. Ohio-based chain reported that restaurant sales in the US decreased by 7% in the second quarter.
Meanwhile, Burger King's sales to the US in the second quarter increased by 8.5%, faster than the 0.8% increase recorded by McDonald’s.
Whopper's sales (the famous Burger King burger) have increased by 20% since the chain presented the new edition in February.
«We sell a lot more whoppers at full price and are of great value on an individual basis», said Sami Siddiqui, CFO of Restaurant Brands International, a parent company of Burger King, when announcing the company's profits last week.
Burger King also saw a push from the Duos menu of $5 and $3 Trios, which allows customers to choose meals of two or three kinds of offers such as a Whopper Jr. and French fries.
«Providing excellent value throughout the menu with the right mixture is really the formula», Siddiqui said.
This strategy contradicted the McDonald’s approach, which attracted customers for years with the menu in dollars.
Even after its abolition in 2013, the chain used other offers to attract customers, from the offer «Buy one – take one for $1» or meals promoted with celebrities like Travis Scott.
A recent Business Insider survey of McDonald’s customers, which attracted nearly 600 answers, shows that many are disappointed with the offers offered now and looking elsewhere for their next burger.
«What was a $6 lunch, now it's a $10 lunch.», wrote a questioner, adding that «now skip Mickey’s» for other options within walking distance, such as Wendy’s and Taco Bell.
«I'd rather go to Burger King»Someone else wrote. «Prices are the same, pretty much, but it tastes better, it's faster and burgers are bigger».
Chili’s and Buc-ee’s participate in the burger war
McDonald’s does not just compete with other fast food chains nowadays.
There is Chili’s, the restaurant chain with seats that has overturned its financial results over the last two years. Part of its strategy: To offer burgers and other kinds of menus competing in materials and price McDonald’s, such as Big QP Burger, which looks suspiciously like a Quarter Powder.
«The fact that you even put Chili’s against McDonald’s — We would never have said that before.», said Mike Perry, founder and head creative director at Tavern, an agency working with restaurant and hospitality customers.
Many convenience stores, such as Sheetz, Wawa and Buc-ee’s, have also gained greater reputation for their fast food, said Placer.ai's Hottovy. «The stigma faced by some of these shop owners has been overcome»He said.
Lauers, the father in Michigan, said he cooks more at home instead of going to McDonald's. One evening, he said, he even makes his own homemade chicken nuggets using an air fryer and makes his own burger burgers.
He doesn't save time, but saves money, he said.
«It's much less, even with the prices of minced meat being somewhat crazy.», said Lauwers.
McDonald’s has previously seen reductions in clientele, followed by recovery due to a new promotional energy that attracts customers again, Hottovy said.
«They almost always come back.»He said.
Source: ot.gr
