The fast food chain McDonald’s has recently come up with a plan to overcome their traffic problem.
The USA McDonald’s President, Chris Kempczinski informed the investors on Wednesday in Chicago that since the year 2012, 500 million or more customers have been lost by the company.
The company has planned to invest about 1.7 billion dollars in an endeavor to bring back its lost customers.
Steve Easterbrook, the CEO of McDonalds said that the company will make all attempts to revamp the existing menu, enhance the experiences of the customers and it will stop from making commendable efforts and rapid strides.
Easterbrook also said that with the help enhanced technology they will bring about elevation and modernization in the customer experience with their primary focus on the value and quality of food, which will be complemented with a redefined and convenient system of delivery. He also added that the company will envision a bold objective and act upon it as soon as possible. The company will move forward at a certain velocity so that their growth is more profitable and they enhance their brand name even further.
McDonald’s has set a target to bring about a process of refranchising in nearly 4,000 restaurants by the time this year ends.The company has an entire year ahead of them to achieve this objective. This will bring the percentage of its franchise all over the world to nearly 93 percent.
Due to its optimal administration, McDonald’s had successfully saved 200 million dollars in the last year. These savings have immensely contributed to consolidating their goal of reducing costs by cutting down any unnecessary expenditure. The company plans to save about 500 million dollars by the year 2018 ends. And by the end of the year 2019, McDonald’s hopes that it will further reduce its expenditure by 5 percent to 10 percent.
The company is slated to return around $22 billion – $24 billion to shareholders in the three-year period up until 2019. That is higher than analysts’ expectations of $18 billion to $22 billion. For the longer term (that is the time beyond the year 2019), the growth of sales is predicted to increase by 3 to 5 percent. For the current methodologies, McDonald’s will focus on 4 key points (that is the renovation of stores, the innovation of menu, efficient delivery mechanism and digital ordering).
In addition to all these transformations, McDonald’s is aiming at becoming a progressive and modern burger company and will also make use of self-ordering kiosks and table service to some of the stores.