Due to Slumps in the Industry, McDonald’s Is Likely to Cut Prices on Drinks

McDonald’s Corp. is facing a restaurant slump that is all across the country. This slump has resulted in slow growth in its push of breakfast all day. In order to boost the business, it has decided to focus on beverages now.

McDonald’s Corp is the biggest food service in the entire world. Last year, it had laid emphasis on the advertisement of chicken sandwiches and cheeseburgers. This time, the company will be planning to offer 1 dollar soda as well as 2 dollar McCafe beverages as a specialty drink in the entire U.S. The reason for this strategy is to lure the Americans who now prefer to eat in their homes because of the cheap prices of most of the grocery items. The company thinks that this promotion of drinks will help them to cope up with their food costs.

From the last 2 years when Steve Easterbrook started managing the operations of McDonald’s, its menu has been undergoing revamping. In addition to the scheme of breakfast available all day, he has also introduced more promotions and discounts all over the country. In the year 2016, it advertised schemes like 2 for 2 dollar and 2 for 5 dollar to win back the diners they had initially lost.

McDonald’s is a leading fast food industry in the US, which has a net worth of 228 billion dollars. However, the industry is facing challenges. Last year, the revenues of the company had risen about 2.4 percent, but researchers from the IBIS World show predict that this year the revenue will fall by 1.5 percent and by 1.6 percent by the year 2018. The shares of McDonald’s have risen by 5 percent in this year.

The promotions of McDonald commence in the month of April and will be broadcasted with the help of national advertising. The promotion includes that the customers can enjoy a soft drink in any size for just a dollar. Another offer is that the customers can buy beverages of McCafe like frappes and smoothies for only 2 dollars, although this offer is valid only for a limited time period.

The Vice President of Oak Brook, which is McDonald’s based in Illinois, Adam Salgado said that the company has the idea to create significant transformations for the customers and add a layer of great value and experience for them with a better variety of choices available. This shift in the focus from eatables to drinks will definitely help McDonald’s to boost its profits.

Saldago also said that the customers who are fast food centric are looking for cheaper deals and the company is aware of the fact that most of the customers are budget conscious. Hence, they will lower the commodity prices and will not compromise on the value.

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