Word: mcdonaldization
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...McDonald's to get cooking again, its marketing also has to be accessible. For the past several years, a virtual revolving door of corporate executives and an overreliance on regional campaigns have resulted in a diffuse, largely ineffective message. "Our marketing has become too democratic," says Irwin Kruger, a New York City franchisee, who this week will open his massive McDonald's in Times Square, complete with a video-laced menu board, flat-panel displays with subway maps and movie schedules, and his own creation, Mini McDonuts...
...McDonald's new national ad campaign will revolve around a national "dollar value menu" that will eventually include the Big 'N' Tasty burger, the McChicken sandwich and special sizes of fries, soda, salad and various desserts. It may not strike anyone as anything particularly new, but it will transmit a unified, consistent message about a bargain. By moving away from sporadic deep discounting in favor of a permanent two-tier menu that keeps signature products like the Big Mac at the top, Mickey D's is following the model that Wendy's has successfully used to lure in penny-pinching...
...restaurants, McDonald's may have to do more than just open up a dual drive-through lane or replace the brown-shingled roof with a red metal one. Some of its most successful locations seem to be the ones that stand out from the pack--whether it's the Orlando, Fla., outlet with a pool table and an air-hockey table, or the one near Chicago with a fireplace and leather armchairs. "McDonald's is a restaurant, not a hamburger stand, and we need to treat it as such," says Chicago-area franchisee David Bear. Who knows, some operators...
...fast casuals account for only 4% of sales in the $130 billion fast-food sector, but their rapid growth has caught the attention of the burger barons. McDonald's has bought a 33% stake in Pret A Manger, with an option to buy the chain outright in 2005. The burger giant also owns a majority interest in Chipotle, which sells fast and fresh Mexican cuisine. And McDonald's bought Boston Market out of bankruptcy in 2000. Not to be outdone, Wendy's in June bought the Baja Fresh Mexican Grill, with 185 stores mostly in the West...
Russ Smyth, who is responsible for McDonald's fast-casual investments, says buying into such restaurants is the only way for traditional fast-food firms to get into the pockets of free-spending fresh-food fans. "No matter what we do," he says, "we won't be able to attract those people to the Golden Arches." --By Desa Philadelphia