Things at McDonald’s are not going well. The Wall Street Journal reported a slump in sales for Q2 of this year and a drop in diners frequenting the restaurant. Whilst some will look to the likes of boycotts as consequential factors, others will also point to the slow sanitization of the dining experience that had once made McDonald’s a special place for families to take their children to. It might be somewhat of a lost memory, but before dystopian-decor dominated these franchises laid gaming kiosks, hamburger seats and ball pits. More and more are starting to acknowledge a disillusioned feeling with McDonald’s where the dining experience has become more desolate, food quality has stagnated and prices have hiked by 20% since 2019. It’s asking quite a lot for the consumer to still happily abide by these changes when there are far better options available in the market, for the same price. 

So how have McDonald’s responded? President of McDonald’s USA, Joe Erlinger, recently spoke to the Wall Street Journal (which could be perceived as soft damage control after the financial reporting broke through). Erlinger was quick to issue corporate buzzwords of “transparency” and the classic “we care” rhetoric as he unveiled a $5 meal to get a reputation for affordability back into the minds of consumers. But it seems these short-sighted attempts to bring back customers are, well, exactly that. It’s unfortunate that many companies tend to think entirely in a quantitative way because when cuts are made, it’s usually the immeasurable yet invaluable things like the decor of your fast food chain that are axed. You can measure overhead costs, but you can’t measure feeling - at least not in the eyes of children looking to get lost in a world of fun whilst they chomp down a Happy Meal. 

Erlinger mentions that 900 new restaurants will be built in the US by 2027. I smell opportunity. One that coincides with research by US youth culture agency, Archival, who issued a game changing report titled “how Gen Z broke the marketing funnel” in collaboration with Vogue Business. The insights, in ‘CliffsNotes’, delves into how younger generations have remodeled the consumer path to purchase from a linear to a 360 experience. Gone are the days of awareness, interest, desire and action style funnels. Instead, the brands really hitting home runs right now have touch-points across a funnel that resembles an infinite loop. Any consumer can jump on the funnel at any point, from inspiration, exploration, community and loyalty, so long as your brand creates an other-worldly experience worth being invested in. So when more and more consumers are ordering on UberEats, what better way to siphon off more homebodies to the restaurants themselves than by creating an eating experience that takes you back to your childhood days of imagination and fantasy? In fact, despite the digital nativeness of Gen Z, 74% think IRL (in-real life) experiences are more important than digital ones. Earlier this year, over 3,000 Cheez-It fans flocked to the fast-food brand’s week-long pop-up diner in upstate New York, with some driving as far away as Virginia, to get a seat at the immersive, retro experience. 

Young consumers are always learning about new brands through YouTube (57%) and TikTok (53%), lacking a plan of action to leverage influencer marketing and user-generated content is another poor move by the brand. Rather than spending copious bucks on advertising a $5 meal, hiring influencers who have better established audiences and the communication chops to convince you that McDonald’s is cool again has proven time and again as a far more authentic method to engage with consumers. Remember the viral Grimace shake that became an overnight and organic success on TikTok last year? I’ve never seen that many people flock out to McDonald’s and get a purple milkshake just so they can create their own cinematic yet morbid videos. My favorite, hands down, is the Hereditary-inspired masterpiece by Alyssa Granno. And in case you’re thinking IRL activations and viral hits are high effort and low reward, in the quarter after the Grimace Shake release, McDonald's reported $6.5 billion in sales, beating original estimates by $200 million.

“We are always a brand that’s trying to stay with the times” says Erlinger. Unfortunately when I hear that, I already know the jig is up. Hand over that Nokia brick phone and your Lenovo laptop, it’s time for some new leadership.