Question

1. Identify 3 major changes in the way people are consuming food, and their impact on McDonalds?
2. Is McDonalds overspending, and squeezing its franchise unnecessarily?
3. Why is McDonalds' share price going

Answer 1

There is a huge change in the way people are consuming food :

• Change in the lifestyle of the population : Lifestyle of the population is changing in a big way. People nowadays prefer to eat out and that too while going for a trip. They prefer to have quick bites instantly, which McDonalds has made it possible through "'Drive Thru option'".
• High inclination towards fast food and junk food items : People and especially youth population have high inclination towards fast food and junk food items in which McDonalds Burget stands on the top. They prefer to have fast food items like burgers, pizzas etc.
• Adoption of the western culture and more working females in the family : As most of the females in urban areas are working, so they prefer to have their food outside or call for Home delivery. Thus due to the influence of western culture and working females, the consumption of McDonalds items have increased.

As the fast food items are being sold not because of the taste and quality but ofcourse due to its quick and instant delivery. Thus to make it accessible and enable fast delivery, it is important for the fast food joint to be present in every nook and corner. Thus McDonalds has taken the right decision by opening more and more number of outlets operating as franchisee and thus have more branches all across.

McDonald's share price is going down. This is because the population is getting more health conscious and are switching towards organic foods to keep themselves healthy. Demand of Mggie is going down day by day. Thus McDonalds's share price is going down.