McDonald’s in comparison with Wetherspoons as ‘all human life is there’ as gross sales plunge
Though McDonald’s has 1,500 diners across the UK its US bosses have repeatedly singled out Britain as one of its most difficult markets – bringing down its international performance
McDonald’s budget burgers are getting a battering – because Greggs’ grub is even cheaper, experts reckon. Food boffins have warned Britain’s love affair with the US restaurant chain could be waning as sales fall amid a backlash over price rises.
Analysts said it is shedding customers to both cheaper rivals such as Greggs and premium range chains like Wingstop. Simon Stenning, director of consultancy Future Foodservice, said: “It is faced with customers trading down into cheaper alternatives and independent fast food.
“And then you’ve got people trading out – going up into the cool, trendy brands.
“If you’re young and in the right demographic Wingstop or Dave’s Hot Chicken is absolutely the place to be, to be seen, to take all your photos and all that malarkey. McDonald’s? Meh.”
Though McDonald’s has 1,500 diners across the UK its US bosses have repeatedly singled out Britain as one of its most difficult markets, warning negative comparable sales brought down its international performance.
Chief executive Chris Kempczinski told investors last month: “The UK is not yet gaining share.
“There’s still work for us to do in the UK. The share losses are to the people that we should be beating.”
McDonald’s has been hit by increases in ingredient and staff costs forcing it to raise prices.
Big Macs have gone up to around £4.89 from £2.99 five years ago while a Double Cheeseburger has risen from £1.49 to £2.29.
A large Big Mac meal costs about £7.59.
Experts said inflation has hurt McDonald’s because it has more customers on lower incomes than other chains.
Peter Martin, founder of hospitality consultancy Peach 20/20, said: “McDonald’s is a bit like JD Wetherspoon – all human life is there.
“You’ve got a big chunk of that who are much more price-sensitive.
“There’s so many brands coming in. There’s so much choice.
“I don’t think McDonald’s are going to go away, just like Burger King’s not going to go away, or KFC. But they’re going to have to react.”
McDonald’s has introduced a £5 meal deal in a bid to restore its low-cost reputation.
But Greggs has overtaken it as the UK’s favorite breakfast outlet.
The baker sells a breakfast roll with cold drink for £2.95 and savoury bake and hot drink for £3.55.
McDonald’s had not responded to a request for comment last night.
But a spokesman said previously the company has grown at three times the speed of its ‘nearest competitor’.
The fact the ‘economic environment remains challenging for consumers’ meant its role as a ‘reliable’ and “affordable” brand ‘people can trust’ was ‘more important than ever before’.
