How has McDonalds used innovation to gain customers?
Being a fast-food chain, many do not consider McDonald’s to be ‘real food’ and may think that they do not put time and effort into their menu. That is quite the opposite of the truth. Teams of chefs work on new menu items daily, and try to improve the items that are already on the menu. They even take it to an international level, careful to balance standard recipes with respect towards local traditions.
In India, Abhijit Upadhye, menu management and supply chain head, was put in charge of creating a new item and two years later, the ‘McSpicy Paneer’ was created. This has become popular in other countries as well. McDonald’s consumers can get McArabia’s in the Middle East (grilled chicken in Arabic bread); Shogun Burgers in Hong Kong (Teriyaki pork); and McShawarmas in Israel (Kosher meat).
In mid- 2007, they launched a specialty coffee line, and with high quality ingredients and low prices, they created competition with Starbucks. They also sought to increase sales at times when not many people where buying fast food, so they created a breakfast menu with wholesome and low priced food.
Innovation has not stopped here.When ordering at a drive-thru window, one might think that they are talking to an employee inside the building, but a McDonald’s franchisee in Missouri has outsourced order taking to Colorado. According to the owner, outsourced order taking allows him to take on 30 additional cars per hour as well as significantly decrease the error rate in order taking as the process has become more efficient and accurate. Overall, the innovation at McDonald’s does not stop at just food, and they will continue to create new and more efficient ways to make money.
Next questions: In what way can McDonald’s use the customers needs and wants to increase profits? Has McDonald’s change America’s work ethics?