Content area
Full Text
Happy Meals are giving McDonald's the blues.
"We are beginning to see a softening in our key drivers: drive-thru and kids," McDonald's Corp. warned in an internal memo sent by regional marketing executives to franchise operators. "Happy Meals have declined in the drive-thru and front counter."
Economic worries, fickle customers and changing demographics are stunting growth in kids' meals - a category the Oak Brook-based burger behemoth singlehandedly built and owned for decades. As a result, the chain - which last month issued its third-consecutive profit warning - is considering several strategic kids' initiatives to spark a growth spurt.
The June I internal memo, a copy of which was obtained by CRAIN's sister publication Advertising Age, was sent to franchisees to update them on McDonald's 2002 plan that was presented to its national owneroperator group, known as Opnad, in late May. The goal is to spur sales in a restaurant category mired in one of its worst slowdowns ever.
"Customers want a better fast-food experience, and they are not recognizing any points of difference between the (quick-service restaurant) brands," the memo continued. Traffic has been a weak spot, with customer counts down 2.6%, "primarily the result of (quality, service and cleanliness) issues."
One remedy the chain is planning is a mid-year effort to shift focus...