Why has McDonald's's Big Mac sales declined by 15% in the past quarter?

Introduction

The recent 15% decline in McDonald's Big Mac sales presents a complex challenge that requires a systematic approach to identify and address the root cause. As we delve into this issue, we'll examine various factors that could be influencing this iconic product's performance, from internal processes to external market forces.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm wondering if there's been a recent change in marketing strategy. Has there been any significant shift in Big Mac promotions or advertising in the last quarter?

Why it matters: Marketing changes can directly impact sales. Expected answer: Yes, we reduced Big Mac-specific advertising. Impact on approach: If confirmed, we'd need to analyze the ROI of previous campaigns and consider reallocating marketing resources.

• Considering potential product changes, have there been any recent alterations to the Big Mac recipe or sourcing of ingredients?

Why it matters: Product consistency is crucial for customer satisfaction. Expected answer: No changes to the recipe, but we switched to a new beef supplier. Impact on approach: If true, we'd need to investigate the quality and consistency of the new supplier's products.

• Thinking about pricing strategies, has there been any change in the Big Mac's price point or its inclusion in value meals?

Why it matters: Price sensitivity can significantly affect fast food sales. Expected answer: We increased the price by 5% last month. Impact on approach: If confirmed, we'd need to analyze price elasticity and competitor pricing.

• Considering broader menu trends, have sales of other menu items increased during this period?

Why it matters: This could indicate a shift in customer preferences rather than a problem with the Big Mac itself. Expected answer: Yes, our new chicken sandwich line has seen a 20% increase. Impact on approach: If true, we'd need to examine menu balance and potential cannibalization.

• Thinking about operational changes, have there been any significant alterations to in-store processes or the drive-thru experience?

Why it matters: Operational efficiency directly impacts sales and customer satisfaction. Expected answer: We implemented a new POS system two months ago. Impact on approach: If confirmed, we'd need to investigate any issues with order accuracy or speed of service.