McDonald's US ditches 'Create Your Taste', franchisees say brand in deep depression
posted on 4th November 2016
McDonald's has put a halt to its Create Your Taste made-to-order programme in the US and replaced it with a simpler version which offers fewer options. A Business Insider report says that many franchisees in the US had invested around NZ$170,000 per location with plans to install the 'Create Your Taste' kiosks in up to 2,000 restaurants across the US. Create Your Taste is in around half of all outlets in New Zealand, where service time is arguably less of an issue than in the US.
An October survey by a Nomura analyst suggested that many McDonald's franchisees in the US believe the brand is in a 'deep depression' and could be facing its 'final days', with one suggesting, 'Probably 30 percent of operators are insolvent.' However, the survey represented only 29 US franchisees with 226 restaurants out of more than 14,000 in the US. Nomura maintained a Neutral rating on McDonald's stock.
Business Insider's Hollis Johnson tested the programme at a New York City McDonald's and paid US$10 for a burger with bacon, tomato, onions, cheddar cheese, guacamole, and two sauces, along with sides of fries and a drink. That's about twice the cost of a Big Mac meal. His meal took eight minutes to prepare.
Some franchisees also complained about the cost of the programme, and said it slowed down kitchen operations and targeted an upscale customer that McDonald's shouldn't be going after.
McDonald's decision to get rid of the full Create Your Taste menu and replace it with Signature Crafted Recipes should help solve some of these issues.
Signature Crafted Recipes has fewer options for customisation than Create Your Taste with bundled toppings that should make it easier for kitchens to handle. The company started testing it earlier this year.
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