It was announced this week that McDonalds will be closing hundreds of stores worldwide, as global sales continue to decline. To begin the year of 2015, the infamous fast food chain will be closing at least 700 of its locations, which is double the number that was planned for closure earlier this year.
In the first 3 months of 2015, McDonalds saw a 2.3% decrease in sales and a 28% drop in operating revenue, continuing a trend of loss that the company has been experiencing for years.
Speaking in a conference call with the Wall Street Journal earlier this week, the company’s new CEO, Steve Easterbrook said that massive changes will be needed to improve McDonald’s struggling reputation.
“I think there is a hunger and an interest in our business to embrace change. McDonald’s management team is keenly focused on acting more quickly to better address today’s consumer needs, expectations and the competitive marketplace,” Easterbrook said.
Over 100 of the recent closures happened in Japan, where McDonalds has faced a number of scandalds relating to the quality of their food.
It is not hard to see that decline of McDonalds is happening, even in your own local neighborhood. Where once there were lines wrapped around the parking lot at multiple McDonalds locations in every town, there are now very sparse crowds at the restaurant, even in high traffic areas and during busy times.
In recent months, we have been paying close attention to how McDonalds and other popular junk food brands are falling out of favor as people become more conscious about their diets. GMO food in general is also quickly losing trust among consumers.
Several months ago, it was reported that organic food sales in the United States had risen to over $35 billion per year. This number is expected to climb as interest in organic food continues to grow exponentially.
Recently, we reported that that the fast food giant McDonald’s is facing major financial challenges as sales steadily decline. Some fast food restaurants, such as Burger King, have been removing sodas from their kids meals, in an attempt to seem more concerned with health.