McDonald’s has a need for speed. Well, at least it wants to.
The fast food giant is reorganizing its operations to speed up product launches, focusing on “winning” in three key areas: beef, chicken, and beverages.
“We could be moving faster,” CEO Chris Kempczinski said in a LinkedIn (MSFT+0.56%) post. He added that this involves working in a “more horizontal way.”
Kempczinski explained that the new structure will help McDonald’s implement big ideas across essential functions like operations, supply chain, and restaurant design. By breaking down traditional silos and creating specialized departments, McDonald’s hopes to respond faster to market trends and customer demands.
Part of this shift includes the appointment of a new Restaurant Experience Officer. Jill McDonald, currently in charge of the company’s international division in Europe, Canada, and Australia, will take on the inaugural role. Kempczinski emphasized the need for a single “touchpoint” for all of these tech-driven efforts.
Perhaps most strategically, the team will establish three global category leads for beef, chicken and beverages. This approach challenges category leaders like Yum! Brands-owned (YUM-0.28%) KFC, which dominates the chicken market.
With consumer confidence dipping and fast food prices pushing customers away, McDonald’s new strategy could be the bump it needs to regain its competitive edge. Kempczinski, who previously worked at Kraft Heinz (KHC-3.03%) and Pepsi Co. (PEP-2.21%), believes adopting a consumer-packaged goods mindset will help McDonald’s pick up the pace.
However, this won’t be an easy task. McDonald’s case still faces challenges, including recovering from an E. coli outbreak in Oct. 2024 that hurt foot traffic.
Several restaurant chains, such as Domino’s and Papa John’s, have lowered their financial forecasts, citing cautious spending due to inflation and geopolitical uncertainty – largely tied to President Donald Trump’s looming tariffs.
As McDonald’s works to regain market share, its latest moves could inspire other chains to follow suit. Recent wins, like the return of the Shamrock Shake and Egg McMuffin deal, have been well-received by budget-conscious consumers.
“This allows us to have an even bigger impact on our customers,” he said.
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