McDonald's has to do something to compete. Last year many branches ran at a loss. Apart from offering so called "healthy meals" several years ago, little has changed. The healthy meals strategy was an absolute failure. Their Angus Burger was a flop as well.
They are going into an area that competitors have found difficult for years - the home delivery of take away meals. Instead of offering the whole menu, McDonald's is creating family packs. This is to increase income per delivery. It may work in Sydney in the short term, but people will ask for extras from the standard menu.
Another problem is getting delivery drivers at the appallingly low rate of pay. Just about every other pizza shop has a permanent "Delivery Drivers Wanted" sign in the window. Many businesses are forced to buy their own deliver vehicles because people don't want the wear and tear on the own car.
The main issue is portion size at McDonald's. They have the audacity to call their "tiny" burger a Big Mac. The chips are not comparable to even one potato. The main threat is Hungry Jack's. Their complete meal with ice cream at $4.95 is a definite winner. And the $2.00 for separates is also a good deal. Note, Hungry Jack's is drawing customers into the shop. The road that McDonald's has chosen is not lined with gold. They need to change the offerings at the shop.
Hospitality by Ty BuchananShare Article