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Monday, March 14, 2011

Who Rules Fast Food...McDonald's Or Subway?


Do you see more McDonald's Restaurants or more Subway Restaurants?  Per the story in Crain's Chicago, Subway has added more eat fresh places than the golden arches can keep up with.  There are currently 32,737 McDonald's Restaurants, but Subway has 33,749 worldwide, 402 more at the end of 2010.  

McDonald's was founded in 1940 in California and Subway in 1965 in Connecticut.  One would think with those extra 20 years of experience, McDonald's would have no problem staying above the competition.  But one could argue they are two different industries commanding two different demographics.  

With the "get fit" craze looming around, there is a greater need for a Subway than for McDonald's.  Subway also has Biggest Loser to thank for constant advertising on the show to get them more publicity.  Biggest Loser reigns supreme in fitness information, so that endorsement is huge!  

While McDonald's has realized their need to make some changes to the menu to adjust to eating habit changes, these changes have been more based upon increasing revenue versus finding out what the consumers really want.  B.M.M.O. Consulting did a posting earlier on McDonald's plans to revamp their look and we thought it was an epic fail, and clearly so did other franchise owners who refused to make the switch.  Then McDonald's decided to start a new line of expensive coffee drinks, the fad only lasted so long and didn't produce the surge in revenue they expected.  Their new product is the oatmeal, this seems more in line with the products the consumers really want, after all, Quaker has been around for years selling it.  

That was the end of 2010 and now we're in 2011, McDonald's has a chance to regain their stake in the market, but that can only come by providing products that the consumers actually want and at a price they are willing to pay.  Subway keep up the good work!

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