McDonald’s Latest Gimmick Continues Denial of Customer Evolution

McDonald’s decade-long declining sales and growth struggle is well documented. As consumption habits see the most dramatic evolution since the 1950s, McDonald’s like many legacy consumer brands continues to deny seismic economic shifts by executing a string of marketing and operation gimmicks. The success of McDonald’s all day breakfast has only emboldened the company to push harder down a failing path.

McDonald’s latest gimmick — it’s own advertising agency review — the winner of which “would allegedly operate at cost before meeting unspecified targets for performance-based pay.” In other words, McDonald’s is proposing that fixing deep operations and profitability problems should become the responsibility of it’s advertising. Besides being a terrible idea, rival Burger King learned in 2011 that even great ads can’t hide bad products.

Instead of gimmicks, McDonalds and similar legacy brands need to revamp their models for a new century. I personally love McDonald’s and still treat myself to a Double Quarter Pounder, fries and nuggets a half-dozen or so times per year. The operative word being “treat” in how the brand may survive this transition.

The long-term profitable survival of McDonald’s will depend on the company’s willingness to significantly scale back locations, offerings, operations and sales expectations to accommodate a loyal yet less frequent customer.

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