I don’t know about you but the thought of crispy McDonald’s french fries makes my mouth water. Replacing that sensation with damp, limp home-delivered meal combo is certainly unappetizing. So I am still digesting the news of the closure of almost a hundred McDonald’s outlets while they introduce home delivery to 250 branches.
The home delivery offer will begin in all the proposed 250 outlets before the end of this year. One of the emerging trends of taking home food instead of dining out, has made the company rethink its strategy. The slow performing stores will be closed and hopefully the delivery option will more than make up the deficit.
McDonald’s has reported that the profits from January to September are down 17.8% when compared to previous year and stands at 17.7 billion yen (approx. $220 million). Besides the closure of the unprofitable stores the company also plans to increase the number of drive-through stores in suburban areas. On the whole the attempts to survive are evident, revamped and special meal offers, menu cards ditched and now this; let’s see how 2013 shapes up for Ronald and his team.
On a side-note, a quick survey has revealed that not many are to gung-ho about home delivery, people expect menus to be back more than ordering 1,500 yen (US$18) of burgers!
[via Kyodo News]
Comments Off on JDP Startup Corner: Pros & Cons of Working with a Partner in Japan