Perhaps this is related to the Middle East boycott of American businesses. See this other excerpt from PRNewswire-FirstCall (emphasis mine). Does anyone know further details?
Restructuring Ownership in Four Countries and Closing Three Countries
McDonald's plans to restructure four international markets by transferring ownership to developmental licensees. Under the developmental license business structure, which McDonald's successfully employs in more than 25 markets around the world, the licensees will own the business, including the real estate interest. While the Company will no longer have any capital invested in the four restructured markets, it will receive a royalty based on a percentage of sales. McDonald's also plans to close operations in three small markets outside the U.S. These decisions were driven by the assessment that returns in these countries will continue to be below acceptable thresholds for the Company. Collectively, McDonald's operates 200 restaurants in these seven countries in the Middle East and Latin America.
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To: DWPittelli
The beginning of that long steady decline.
2 posted on
11/08/2002 6:47:28 AM PST by
cynicom
To: DWPittelli
Maybe their advertisements in France are paying off. Aren't they telling people to cut down on their trips to McD's. I know that I was impressed. I probably won't make my annual trip to a McD's this year and maybe not next year.
3 posted on
11/08/2002 6:48:57 AM PST by
FreePaul
To: DWPittelli
I really hate to see this. Where am I going to stop to use the restroom?
4 posted on
11/08/2002 6:56:17 AM PST by
RichardW
To: DWPittelli
I had breakfast at McAfrica today. With nobody in line in front of me, it took 15 minutes to prepare the lukewarm-to-cold gravy/biscuit. The jungle music was so loud, I had to take it to my car to finish it. Gross.
5 posted on
11/08/2002 7:01:21 AM PST by
CWRWinger
To: DWPittelli
"Perhaps this is related to the Middle East boycott of American businesses. "No. Their US sales have been in free-fall for the last few years. They've developed a bad reputation that is sticking.
Americans are changing their eating habits, somewhat, and Grocery stores are offering wide arrays of prepared foods at their deli's.
McDonalds greatest growth occured as American culture switched from families with 1 working parent to families with 2 working parents and single parents.
Ready prepared healthier food for families seems to be what the market is demanding.
(I say this like I'm some expert, LOL, I'm not. These are only my observations)
To: DWPittelli
Just as the quality of their food declines, so will their earnings. I know they overhauled their kitchens a couple years ago in an attempt to deliver "fresher" food, but it has only added to the wait in getting your food. Besides, microwaving a pre-cooked hamburger patty doesn't make it fresher, only more rubbery. They need to cut their menu in half and concentrate on delivering a few, high quality items like they did in the 70's. Also, bring back the beef fat formula for cooking the french fries!!!
8 posted on
11/08/2002 7:02:31 AM PST by
reegs
To: DWPittelli
Headline: McDonalds to cut the Fat.
9 posted on
11/08/2002 7:03:46 AM PST by
jbstrick
To: DWPittelli
This is hardly a major development, McDonald's worldwide has 31,000 locations. This news is meant to stir emotions and is interesting, but equivalent to my former restaurant chain rearranging the dessert menu at only one location.
11 posted on
11/08/2002 7:15:49 AM PST by
carlo3b
To: DWPittelli
That's funny, they just opened a brand new one here where I live & I live in BFE. But I think that alot of the posters here are right, Americans are cutting out the Fast Food Grease burgers with Fries.
To: DWPittelli
Middle East has nothing to do with this. The McDonald's business in the Middle East represents but a grain of sand in McDonald's crumbling sand castle.
McDonalds built a huge global fast-food empire and they are going to be around for a while. They still make most of their profits on real estate - the own the properties and lease them back to the franchiser. McDonald's is sitting on billions of dollars of prime real estate. But unless they change their business plan for the restaurants, they are going to begin suffering a decline in fast-food market share. There are just too many outlets out there doing fast-food better.
To: DWPittelli
It's over saturation. Back when I was a burger flipper (which ended 10 long years ago) the McD's execs were saying they thought the FF market was over saturated in most American cities (and considering the place I worked was one of 10 FF joints in a 1 mile stretch I heartily agreed). But inspite of that McDs continued to plop news stores all over the place. If the market was over saturated when McDs had 10,000 stores what is it when they have nearly 20,000?
16 posted on
11/08/2002 7:25:29 AM PST by
discostu
To: DWPittelli
I think a lot of this is due to increased competition. Out here on the Left Coast, Jack in the Box is very popular (better food, too), along with Carl's Jr., BK, In-n-Out. Not to mention Taco Bell, El Pollo Loco, etc., not only popular with Latinos but with Anglos too.
To: DWPittelli
That's it: Sales of their McGoat and McLamb Value Meal have slumped badly.
To: DWPittelli
I used to love Big Macs and McDonalds used to be famous for delicious french fries.
Now, if I have a Big Mac, I end up belching dehydrated onions the rest of the day. As for the fries, as soon as you get to your seat, they're cold and rock hard. Do you remember when they would droop as you dipped them in ketchup?
Now, I crave Whoppers with cheese, but BK's fries are no better.
19 posted on
11/08/2002 8:10:42 AM PST by
Nephi
To: DWPittelli
I wouldn't mind a bit if they closed mine. Grungy looking indoors and out and lackadaisical employees, many of whom don't speak English at all!
Also, plastic hamburgers and tasteless fries and "milkshakes" which collapse your checks when you try to straw them up. Not to mention that when you get home, you frequently find some kind of mistake was made in your order.
While I do agree that many Americans are changing their eating habits, I also feel that MOST Americans still want a lusciously-greasy fast food fix once in a while. But in trying to be politically-correct to please all tastes, McD's is succeeding in pleasing none.
Assembly-line-mass-production-for-mass-profit in feeding American junk-food lovers has resulted in ongoing lower standards in quality, taste and service.
Leni
To: DWPittelli
Q: Do you know what they serve for breakfast at the Bangladesh McDonalds?
A: Egg McNuthin'.
23 posted on
11/08/2002 9:11:56 AM PST by
PJ-Comix
To: DWPittelli
I can remember when you could get 7 McDonald hamburgers for a dollar. They were sooo good, too.
I don't remember when the change occurred to cardboard junk. I do know that in 1973, Swift sold meat to them that was "one step above dog food". True story. I worked at Swift, and my boss told me so.
To: DWPittelli
Remember how McRibs flopped? Well I heard they also tried to upgrade by selling escargot but the public just didn't go for a menu item called "McSlugs."
25 posted on
11/08/2002 9:16:54 AM PST by
PJ-Comix
To: DWPittelli
This is what happens when companies are forced to raise the minimum wage for people that don't deserve it. The company ends up paying more for their staff...but they don't get better staff.
To: DWPittelli
What happened? Did Bubba Clinton go on a diet?
32 posted on
11/08/2002 9:34:14 AM PST by
Bane
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