McDonalds to revamp menus as profits slide

McDonald's CEO Don Thompson said yesterday the company had not been keeping up with the times and that changes were in store for its US restaurants, AP reported.

Starting in January, according to Thompson, McDonald's would ''simplify'' its menu to make room for restaurants to offer options best-suited for their regions.

He added the company planned to expand its ''Create Your Taste'' offering that allowed people pick the buns and toppings they wanted on burgers by tapping a touchscreen. The programme was currently on offer in Southern California.

During a conference call outlining changes, Thomson conceded that the company had not been changing at the same rate as its customers' eating-out expectations.

The remarks came after McDonald's said its profit fell 30 per cent in the third quarter, with sales at established locations down 3.3 per cent globally and in its flagship US market. In the division encompassing Asia, where a major McDonald's supplier was shown on TV repackaging expired beef, the figure fell 9.9 per cent.

Meanwhile, China Topix reported that McDonald's was overhauling its corporate image and meant to serve its target market, which was largely due to the dismal third quarter this year.  The fast food chain took a 30-per cent hit to its net income as of 30 September collectively in stores in Europe, Asia, and US.

Competition had become tougher as rivals Chipotle Mexican Grill, Panera Bread Co, and Five Guys offered customised menu and fresh ingredients.

McDonald's gave the go ahead to 21 regional stores to introduce products appeals more in line with market expectations including indigenous ingredients. 

The plan was in conjunction with the "McDonald's Experience of the Future" effort, which also aimed to provide customers more avenues to make digital payments.

In a statement, Thompson recognised that the success of McDonald's lay in its ability to provide customers varied choices while maintaining the stance in a continuously growing and highly-competitive food industry.  The food chain also planned to offer organic products on some targeted markets.

In addition to the 9.9 per cent fall in profits in the Asia-Pacific, Middle East, and Africa regions the company faced problems in Russia, with the government shutting down more branches while others were subject to extensive inspection, a scenario that was linked to US sanctions in Ukraine conflict.