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McDonald's Sales Slow

Fast Food Giant Feels Effects of Economy

Aug 1, 2009 Patricia Faulhaber

Fast food sales have slowed along with most other restaurant sales. Sticking to traditional marketing, McDonald's chain has survived longer than most.

At a time when most consumers are tightening their grip on their wallets, spending has slowed for many family activities including shopping and eating out.

Although there are fewer people spending money to take their family to their favorite restaurant, McDonald’s seemed almost exempt from feeling any effects of the slow economy – that is until recently.

McDonald’s June Sales

The Wall Street Journal reported in the July 24, 2009 issue, that same-store sales for McDonald’s fell below expectations. The decline is fairly recent. According to the same article, April sales figures for McDonald's were up 7 percent in 2009 compared to 2.6 percent in June.

Second quarter profits came in at $1.09 billion compared to $1.19 billion one year ago. Although that income number is still substantial, it is also a $10 billion drop in sales.

This comes at a time when, according to The Wall Street Journal article, overall restaurant sales have seen the sharpest decline since 1981.

Four Ps of Marketing

Part of the long term success of McDonald’s has been that the company seems to have always practiced the 4Ps of Marketing to the letter. They have provided a product that consumers want and appreciate at a price they can afford through the most dire of economic times.

The chain has placed restaurants strategically across the world for easy access for all income levels. They have implemented promotions that beat their competition hands down on every level including:

The ever favorite Happy Meal with popular toys.
Using a product mix that serves the entire family.
Always bringing the price of their products to the front of every promotion.

Fast Food Prices

At a time when price means everything, McDonald’s has been introducing higher priced selections to their menu. The McCafe espresso based drink line and $4 angus hamburgers are just two of the menu items that are priced above the chain’s traditional pricing.

While their promotions have addressed the espresso drinker directly with temptations of same or better taste at lower prices, the chain is unsure of how much McCafes sales have helped or hurt.

McDonald’s Revival

For too many families, eating out is no longer a favorite or affordable pastime. McDonald’s has again risen to the occasion and been the one bright spot that families have been able to continue to buy for their families.

McDonald’s is not that far off their game that they can’t return to their 4Ps marketing strength and turn around or slow down the sales dip.

The copyright of the article McDonald's Sales Slow in Marketing/PR is owned by Patricia Faulhaber. Permission to republish McDonald's Sales Slow in print or online must be granted by the author in writing.

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