International News: McDonald's Enhances Signature Burgers Globally to Bolster Sales
McDonald's Corporation, aiming to enhance its core offerings to boost sales, has announced a series of modifications to its signature burgers. These changes, designed to improve flavor and quality, include softer buns, gooier cheese, grill-cooked onions, and increased Big Mac sauce quantity.
Chef Chad Schafer, senior director of culinary innovation for McDonald's USA, stated Monday that these minor alterations, such as optimizing the cheese melting process and adjusting grill settings for a better sear, have significantly improved burger flavor. The changes affect various offerings, including the Big Mac, McDouble, classic cheeseburger, double cheeseburger, and hamburger.
Initially introduced in international markets, these improvements have already been implemented in select US cities, including Los Angeles, Seattle, Phoenix, and Las Vegas. The upgrades are expected to be available nationwide by early 2023.
These changes follow previous improvements to key menu items. In 2018, McDonald's switched to fresh beef for its Quarter Pounders, a move that yielded substantial sales growth. In 2021, it launched a crispy chicken sandwich, a late entry into the chicken sandwich market yet one that appears to have appealed to McDonald's customers.
During a January analyst call, CEO Chris Kempczinski noted, "We are gaining market share in both chicken and beef, thanks to improved burgers like these and offerings such as our new chicken sandwich." He further stated, "In an environment where our customers seek the simple and familiar, our core menu items have never been more relevant."
U.S. Retail Sales Increase 5.9% in Q4 2022, Marking a 10.3% Yearly Growth
In a notable development, retail sales in the United States saw an uptick of 5.9% during the fourth quarter of 2022, translating to a 10.3% annual increase. This trend is also evident in the food service sector, with fast-food giants such as McDonald's and Burger King revamping their flagship offerings.
McDonald’s USA has adopted a strategy of emphasizing core menu items over introducing new products, aiming to streamline processes and minimize kitchen friction. This approach is demonstrated in marketing initiatives like celebrity meal collaborations and the adult Happy Meal, designed to generate excitement around established offerings.
During a January call, McDonald’s CEO Chris Kempczinski highlighted successful campaigns that brought customers closer to core menu items throughout 2022.
Similarly, Burger King, which announced a business turnaround plan in 2021, has been focusing on enhancing its signature Whopper burger and increasing its visibility in advertising. In Q4 of last year, franchisees underwent Whopper training, and the brand reported higher US sales attributable to the Whopper in February.
This focus on improving primary offerings is a strategic move by these brands to capitalize on customer favoritism and boost overall sales performance.
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