MORE GOOD NEWS(finally)!!! from WSJ 3-19-98
March 19, 1998
McDonald's Cheers Franchisees
By Announcing Menu Changes
By RICHARD GIBSON
Staff Reporter of THE WALL STREET JOURNAL
ORLANDO, Fla. -- McDonald's Corp., acknowledging that its menu
needs perking up, plans to improve the taste of several sandwiches and
test what it calls "an indulgent bacon cheeseburger" soon.
The fast-food giant also disclosed that it is working on a crispy chicken
nuggets item intended to appeal more to adults, and that it will roll out a
line of candied ice creams called McFlurry desserts. And, reversing a
decision made under pressure from advocates of healthier fare several
years ago, McDonald's plans to boost the fat content of its milkshakes.
News of the changes came as the Oak Brook, Ill., company gave its
world-wide franchisees a pep talk, following a year of disappointing
sales, marketing miscues and domestic management turnover. The
franchisees, who are attending McDonald's biennial convention,
seemed cheered by word of menu revisions and the way food will be
cooked, and gave U.S. Chairman Jack Greenberg a standing ovation.
The likely menu changes appear in part to be a tacit admission of the
failure of the highly touted "adult-oriented" Deluxe line, led by the Arch
Deluxe hamburger introduced at the convention two years ago. Since
then, the fish Deluxe sandwich has been replaced by an updated version
of the popular Filet-o-Fish sandwich, and work is under way on the
Deluxe chicken sandwich.
Much of this year's convention exhibit space is given over to a
prototype of a just-in-time cooking system the company is calling
"Made for You." The 13,000-restaurant domestic system is supposed to
convert to it over the next year or so. But it is expensive -- estimates
from franchisees are that it could cost upward of $60,000 per store -- so
McDonald's is seeking to sell franchisees on its merits.
"We want to signal a big change here, and elevate McDonald's to the
food leadership position by telling customers that our food has
improved significantly when it comes to taste and the way we prepare
it," Wendy Cook, director of menu management, said in a newspaper
McDonald's distributes at the convention. Tests of the modified menu
will begin this spring -- assuming that the Made-for-You system is
accepted by franchisees and customers.
What the paper calls "five delicious new surprises" include the
McDonald's Big Xtra, advertised as the MBX in test markets, which
features a 4.5-ounce beef patty that's 20% larger than Burger King's
Whopper flagship.
This summer, McDonald's will test its new bacon cheeseburger, which
will be crowned with strips of extra-thick and crispy bacon. Also in the
works: An improved grilled chicken sandwich featuring a
roasted-chicken flavor.
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