On the go food boom sees convenience stores in winning position

Sales of on-the-go foods through convenience stores and supermarket outlets are increasing, visits to US convenience stores for prepared foods up 3% and visits to supermarkets up 1% in 2014 according to new data released in the US market. The competition onslaught has seen Quick Service Restaurants like McDonald’s increasingly turn to healthier foods and revamped menus in an attempt to maintain market share. In addition, in the coffee and breakfast arena, McDonald’s is facing increased competition from QSRs such as Starbucks, Taco Bell and Dunkin’ Donuts.

In Australia, McDonald’s will use its rebranded The Corner store in Camperdown, Sydney to test a new, healthier menu with the possibility of rolling it out across its 700 McCafes in Australia, a spokesman said.

McDonald’s is taking decisive action to regain momentum in sales, guest counts and market share. After a dip in customer numbers in the US for two years, McDonald’s Corp announced it was replacing CEO Don Thompson with its chief brand officer, Steve Easterbrook.

The move comes as McDonald’s reported disappointing full year 2014 results for the year ended December 31, 2014, with a global comparable sales decrease of 1.0% that reflected negative guest traffic in all major segments, while consolidated revenue decreased 2%.

In addition to plans to simplify its menu and improve service, McDonald’s recently launched a marketing campaign intended to associate its brand with the positive emotion of loving.

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