When it comes to cheap eats, nobody does it (pink) slimier than McDonald’s. Years of undercutting healthier products in favor of inexpensive substitutes have caught up with the company, causing them to lose a decent amount of their customers, including myself. However, so much has been written on how the fast food industry is killing us that I doubt I would have anything interesting to say on that conversation. Instead I will focus on a more interesting topic, what is it about McDonald’s that has begun to draw customers back?
According to Kaylin Pound from Elite Daily, McDonald’s began by trying to change our tastes and preferences: remarketing “without us even noticing.” In 2016 the restaurant shifted away from many unhealthy ingredients they used to make items across their menu, a clear response to the market pressures the company faced due to the quality of their food. Now these changes, although seemingly made under the radar, still clearly made headlines, and surely reached many people subconsciously before McDonald’s began to advertise these healthier options.
One of the more prominent advertisements was for the new Quarter Pounder, which will be made of fresh beef by mid 2018. Luckily for me, however, the Dallas-Fort Worth area was selected as a test location for the burger, and I decided to try one in early 2017. As a consumer of the product, I must admit that I was impressed with the quality of the sandwich, even though it took longer to receive than any “fast food” item usually does.
However, as an economist, I must say that the marketing strategy implemented by McDonald’s was impressive. Drive-thru lines were packed for weeks, and many customers would willingly wait 5-10 minutes at a time for the revamped menu item. It is very clear that customers were willing to buy more sandwiches without a change in price, signaling a definite change in preferences.
McDonald’s wouldn’t stop there, however, and began looking for ways to get customers who cared less about the quality of the food to buy higher quantities of it. In 2015 they launched a free app that only requires the user to create an account with their email in order to use free coupons and claim rewards in store. I will admit to using the app quite frequently, bragging about how I will stop by on Free Fry Friday to claim a medium fry with any purchase. However, many of the deals on the app are strategically used by the company to incentivize consumers. In the picture above there are many different kinds of deals, three of which are “buy one, get one free” deals for “premium products” of some sort. These deals reward consumers for buying a more expensive sandwich than they might have purchased regularly with another sandwich.
In addition to the app, however, the restaurant has also revamped their dollar menu. As Bloomberg reports, “McDonald’s Corp. is seeing a jump in customers” due to the recent changes to their value meals, suggesting a shift toward equilibrium in the market for their cheaper foods. As a result of this, some restaurant owners believe that the increased popularity in the value menus will draw customers away from the more expensive items of higher quality, however, I would beg to differ. With the combination of the companies efforts to improve the quality of their premium sandwiches, more customers will frequent restaurants as their preferences shift towards these items. Simultaneously, options like the McDonald’s app and the new value menu offer discounts that will increase sales throughout the menu. As a former critic of McDonald’s, I must say that I am impressed, not only by the quality of their new burgers, but also by the genius of their rebranding campaign.