In this file:


         McDonald's is doubling down on deals and inexpensive breakfast to win over budget shoppers as the gap between rich and poor grows in America (MCD)

         Senators tell McDonald's: Franchisees need harassment policies





McDonald's is doubling down on deals and inexpensive breakfast to win over budget shoppers as the gap between rich and poor grows in America (MCD)


         McDonald's needs to win over budget shoppers to attract more customers, with the chain recently adding new local deals to its $1 $2 $3 Menu and inexpensive breakfast options like Donut Sticks.

         Still, the top reason that people who are eating at McDonald's less frequently provided to explain their behavior in a new UBS survey is that they had less spending money.

         McDonald's is simultaneously trying to win over more affluent shoppers through its newly national delivery service.


Kate Taylor, Business Insider

via Stamford Advocate (CT) - June 11, 2019


McDonald's is determined to win over budget shoppers.


The fast-food giant has reported nine consecutive quarters of same-store sales growth, even as the chain battles slumping traffic.


Now, McDonald's is looking to both budget shoppers and wealthier customers to reverse the trend and boost traffic, according to a UBS research report released on Tuesday.


"MCD remains focused on driving positive guest counts, by retaining customers, regaining lost transactions, and converting casual customers," reads the report from UBS' Dennis Geiger.


Of the more than 2,000 fast-food eaters surveyed by UBS, the top two reasons customers who said they are eating at McDonald's more frequently provided to explain their behavior was "good value" and "more promotions." When asked what factors would make them visit more frequently, the top three answers were "lower prices," "higher-quality food," and " more frequent promotions."


McDonald's has targeted these value-seeking customers with deals such as $1 $2 $3 Menu, which has been tweaked to focus more on local offers, and inexpensive breakfast options such as Donut Sticks. Geiger writes that further breakfast plans in 2019 include local value offerings and new menu items.


"Despite a pullback on some of the deeper QSR value offerings, intense industry competition on value still remains and likely will not notably abate in the near term," Geiger writes.


It is crucial that McDonald's provide the deals that customers are seeking. More than one in four respondents who said they were eating McDonald's less explained their behavior by saying that they had less spending money, meaning that a lack of disposable income was the top reason that customers said they were ditching the chain.


Recently, declining unemployment and increases in consumer optimism have painted a cheery picture of the American economy. However, many people who regularly eat at fast-food chains continue to struggle financially.


The bottom 40% of American consumers had less discretionary income in 2017 than they did a decade prior, according to a recent study by Deloitte. The next 40% didn't do much better, with only the top 20% seeing meaningful income gains.


While McDonald's depends on budget shoppers, it also wants to win over this top 20%. Attracting more affluent customers means higher checks, allowing McDonald's to fund more expensive projects that can boost the chain's reputation, such as with its 2018 fresh beef rollout...





Senators tell McDonald's: Franchisees need harassment policies


         Eight U.S. senators are demanding McDonald's CEO Steve Easterbrook do more to ensure workers are safe from harassment at the company's 14,000 U.S. locations.

         "Continued reports of workplace misconduct are unacceptable," said the lawmakers in a letter to the fast-food chain's head.

         The request comes less than two weeks after more than two dozen McDonald's workers alleged they were sexually harassed at work.


By Kate Gibson, CBS News

June 11, 2019


Eight U.S. senators, including four presidential candidates, are calling on McDonald's to require its franchisees do more to protect workers from harassment at the fast-food company's locations across the country. While praising McDonald's for working with an outside group devoted to curbing sexual violence to improve worker conditions and upgrade its harassment policies, "continued reports of workplace misconduct are unacceptable," the lawmakers wrote Tuesday in a letter to McDonald's CEO Steve Easterbrook.


"Since independently owned operations make up the vast majority of the over 14,000 McDonald's locations across the U.S., it is imperative that the McDonald's Corporation require all franchise locations to adopt the updated policies to guarantee that all workers will be covered by the new protections and support services," wrote the senators.


"McDonald's already places enormous requirements on its franchisees, including down to granular tasks and food preparation techniques. These mandates are a way to ensure consistency across locations. Yet, when working to protect McDonald's workers, you have chosen a different approach that settles on merely 'encouraging' and 'offering' new policies and resources to franchise operators," they wrote.


Signed by senators including...