They've lost that 'lovin' feeling: McDonald's unveils new slogan in a campaign to spread 'happiness on the internet'
- Fast food giant's new catchphrase 'Lovin Beats Hatin' will debut next year
- Restaurant chain reported a dismal year with a 30% drop in worldwide sales
- New slogan will give the company 'broader marketing heft around the world'
It sounds like they're not 'lovin' it' as much as they used to.
The world's biggest fast food chain has unveiled a new slogan in an attempt to stop its sales from sinking.
'Lovin Beats Hatin' will be launched next year, and is a campaign aimed to spread happiness in the face of Internet hate.
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According to reports. McDonald's new slogan 'Lovin Beats Hatin', will be launched next year at the Super Bowl
According to the Wall Street Journal, the roll-out will include a spot during Super Bowl XLIX on February 1.
The marketing ploy comes at a time when worldwide sales dropped by 30 per cent in the third quarter of last year.
The current catchphrase 'I'm Lovin' It' will still remain as a global slogan.
An inside source said the change is aimed 'to spread happiness in the face of Internet hate,' but the WSJ did not elaborate on what that precisely means.
Officially, the company is staying mum about the possibility.
'We're always working with our partners on great new creative,' said a spokesperson. 'It's highly speculative and premature to talk about Super Bowl ads and future campaigns for next year.'
The reported change will come during a tough time for the world's largest hamburger chain.
After posting yet another disappointing quarter, McDonald's CEO Don Thompson admitted last week that the company hasn't been keeping up with the times and that changes are in store for its U.S. restaurants.
SO WHAT'S THE PROBLEM? 5 ISSUES FACING MICKEY D'S IN THE U.S.
BAD FOOD IMAGE
To defend the image of its food, McDonald's launched a social media campaign last week inviting customers to ask questions about the ingredients it uses. Showing just how bad perceptions can be, among the first questions McDonald's addressed were 'Why doesn't your food rot?' and 'Do you use real chicken in your Chicken McNuggets?'
The company has run similar programs in Canada and Australia, where it says the program has built trust with customers.
LACK OF FLEXIBILITY
Consistency has long been one of McDonald's attractions - people like knowing exactly what they'll get when they order a Big Mac. But now people are gravitating toward places like Chipotle that let people tailor their orders. To offer greater customization down the line, McDonald's recently rolled out prep tables in its kitchens that can hold more toppings and sauces.
The company is also testing a build-your-own-burger offering in southern California that lets people pick the bun, patty and toppings they want. In Australia, McDonald's has already said it plans to roll out the format nationwide.
SLOW, INACCURATE SERVICE
McDonald's executives have said they introduced too many items too quickly last year, such as McWraps and the option to substitute egg whites for its breakfast sandwiches. That slowed down service and led to inaccurate orders. On Tuesday, McDonald's said it would focus on a simplified menu that highlights its most popular items but did not give specifics.
PRICE SENSITIVITY
Raising prices without driving away customers has been tricky for McDonald's. At one time, for instance, the popular Dollar Menu included a Big N' Tasty, which was made with a quarter-pound of beef. But over the years, McDonald's has had to swap out items as costs for beef and cheese have climbed.
Late last year, McDonald's revamped its Dollar Menu to be called the 'Dollar Menu & More,' with a range of prices up to $5.
INCREASED COMPETITION
In addition to newer players like Chipotle, longtime rivals Burger King and Wendy's have been intensifying competition, too. And Taco Bell launched a national breakfast menu to go after the growing breakfast market.
Business Insider reports that the new slogan has received negative comments online, with Twitter users condemning the chain for their decision.
Thompson said that starting in January McDonald's will 'simplify' its menu to make room for restaurants to offer options that are best-suited for their regions. To offer greater customization, he also said the company planned to expand its 'Create Your Taste' offering that lets people pick the buns and toppings they want on burgers by tapping a touchscreen. The program is currently being offered in Southern California, and McDonald's has said it will roll it out nationally in Australia.
'We haven't been changing at the same rate as our customers' eating-out expectations,' Thompson conceded during a conference call outlining the changes.
Feeling the pinch: While McDonald's sales tank, restaurants with a more 'wholesome' image are flourishing. As a result, people have been gravitating to places like Chipotle, which markets its ingredients as being of superior quality
As more and more consumers turn their backs on the Golden Arches, McDonald's recently launched its first ever consumer outreach exercise, inviting customers to ask questions on their Our Food Your Questions website.
The remarks came after McDonald's said sales at established locations fell 3.3 percent globally and in the U.S. division, marking the fourth straight quarter of declines in its home market. Profit sank 30 percent.
The changes come as McDonald's continues to struggle with myriad problems. One of its biggest challenges in the U.S. is long-held perceptions around the freshness and quality of its ingredients. The chain has been fighting to boost sales as people gravitate toward foods they feel are more wholesome. As a result, people have been gravitating to places like Chipotle, which markets its ingredients as being of superior quality.
McDonald's, which has more than 35,000 locations around the world, said it expects its challenges will continue into the current quarter, with global sales down for October as well.
For the quarter, revenue declined to $6.99 billion, short of the $7.23 billion Wall Street expected. Net income declined to $1.07 billion, or $1.09 per share. Adjusted for one-time costs, earnings were $1.52 per share. Analysts expected $1.37 per share.
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