Tags: tom hutchinson | mcdonalds | fast food | restaurant

Tom Hutchinson: McDonald's Will Have to Fight to 'Stay Relevant'

By    |   Tuesday, 09 June 2015 02:44 PM

McDonald’s will “have to fight for it” to stay relevant in today’s ever fickle fast-food industry, Tom Hutchinson, senior editor of the Newsmax newsletter "The High Income Factor," told Newsmax TV.

McDonald's, which on Monday reported its 12th straight decline in monthly same-store sales, is fighting to lure back customers lost to more nimble rivals and increasing demand for fresh, less-processed food, Reuters reported.

“To stay relevant in the rapidly changing world you have to fight for it. They're still doing good overseas because they're not as burger obsessed over there and McDonald's is still a nice guilty indulgence Europeans secretly like,” he told “Newsmax Now.”

“But McDonald's has an advantage that some of its competition doesn't have and that's breakfast. There's a lot of things they can tweak and still be right in there.”

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McDonald's, the world's biggest hamburger chain by sales, is also trying to deal with rising wages without hitting up the casual diner for eve more money at mealtime.

“Worst-case scenario, (McDonald’s could) raise costs a little bit. It's a nagging issue, but the bigger issue is how can they adjust their American business to the fact that their food is pretty unhealthy and perceived as so.”

Hutchinson spoke on the same day that McDonald's named former White House press secretary Robert Gibbs as its global chief communications officer, as the fast-food giant looks to improve its image.

McDonald's Corp.'s CEO, Steve Easterbrook, said in a company statement that both Gibbs and new Chief Marketing Officer Silvia Lagnado will offer a wealth of experience and outside perspective "as we build a more modern, progressive burger company," the Associated Press reported.

And while McDonald’s copes with wage pressure and image problems, newcomers are entering the dining ring.

“Shake Shack has been phenomenal. They've been the latest to capture the American burger imagination, which has vast and they have a good tasting burger, great name,” he said.

“Chipotle is tough too. They've offered really a whole another regular meal choice. They've made Mexican mainstream easy and they're doing great as a result of it, but even those places will find that maintaining that dominant market share in a fast changing world is going to be tough. They're going to be where McDonald's is not too long from now.”

Meanwhile, rivals such as Pizza Hut have struggled after launching new marketing campaigns, such as appealing to today's youth.

"It's not a good idea. Appealing to millennials, it's kind of tough because more than anything else they're chameleons. You can do what they like right now and they change their taste in three years. They reflect their times."

About Tom Hutchinson
Tom Hutchinson is a member of the Newsmax Financial Brain Trust. Click Here to read more of his articles. He is also the editor of The High Income Factor. Discover more by Clicking Here Now.

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McDonald’s will “have to fight for it” to stay relevant in today’s ever fickle fast-food industry, Tom Hutchinson, senior editor of the Newsmax newsletter "The High Income Factor," told Newsmax TV.
tom hutchinson, mcdonalds, fast food, restaurant
Tuesday, 09 June 2015 02:44 PM
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