food safety

Food Safety Leads To McDonald’s Boom?


The title seems a little illogical doesn’t it; how can bad food safety help McDonald’s have an awesome comeback? But no matter how improbable that sounds, it is the reality.

Though the company was weighed down by the various concerns raised in Asia (the chicken scenario in China – click here for our report on that scenario – and the lack of French fries produced in the Japan McDonald’s market), there was a report of 1% decline in last year’s same-store sales, arguably the most important performance metric in the restaurant industry. It was the company’s worst showing in more than a decade and led to the resignation of CEO Don Thompson.

From the featured image, you can see from the graph that 2014 did see a slump in its performance in 2014 but it was nowhere near as bad as the one that occurred in 2001 and 2002. The 2001 and 2002 slump was caused by the strong U.S. dollar at the time and weak economies in many countries McDonald’s operates. There were also concerns in Europe and Japan over beef safety.

With such similar scenarios, some predict that McDonald’s will come fighting back as they did in the early 2000’s. They will utilise the feedback from the previous year and improve their company to beat their competitor’s in the upcoming year.

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