Thursday, June 18, 2015

McDonald's Closing 700 Stores Worldwide?

News about McDonald's closing of 700 stores is not huge news.  I look at it like as a consolidation. There are too many McDonald's.  Sometimes you drive down the road and you pass two McDonald's restaurants within a few miles.  McDonald's still has about 36,000 restaurants worldwide.

What was interesting to me about this article was how McDonald's is no longer seen as relevant to a big sect of customers.

That's true.

There are more choices.

So, relevancy is... relevant to the number of choices.

If I am on the road and need to grab a bite during the day, I turn to In-N-Out where I can get a fresh made-to-order hamburger for $2.34.

If I have a little more time and a little more money, I turn to Tender Greens where I can get a beautiful Tuna Nicoise Salad for $11.50.  But they have less expensive choices including a smaller salad or you can order a filling side dish for $2.00.

My mother told me a story recently about eating out.  She and my sister went to McDonald's and bought a simple lunch for two.  The cost was $16 and they didn't order very much food.  When you're spending $16 for fast food, you have to rethink your choices.  You also have to think about health.

McDonald's will never go out of business.  It's a standard offering and there still seems to be one on every major corner.

There are only two food items that I buy from the McDonald's menu: The Egg McMuffin and the Vanilla Ice Cream Cone.

The Egg McMuffin is only 300 calories.

The Vanilla Ice Cream Cone is only 170 calories.

That said, the Egg McMuffin has priced me out because it now costs nearly $4.00.

The ice cream cone is a real treat because it costs only $1.00 plus tax.

The ice cream cone will remain on my treat list as long as there are McDonald's restaurants.

Honestly, I think news of the self-serve kiosks at McDonald's is bigger news... people potentially being replaced by machines?  That's a huge story for all of us.

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