Has McDonald's also learned the art of being stingy?

After the McDonald's Poor Man's Meal, is there another "Stingy School"? Why does McDonald's keep reducing its prices? Let's find out.

McDonald’s popular McFlurry is becoming a customer-attracting product for stores. Many non-McFlurry consumers are attracted by the zero-yuan McFlurry and make pilgrimages to the stores.

However, after the prospective believers successfully exchanged their drinks, they often found that the portion of the McFlurry had become smaller and the taste had become thinner. Those who had intended to convert to McFlurry immediately lost their faith.

In fact, it's not just the McFlurry. McDonald's Filet-O-Fish, Big Mac and other hamburgers have also shrunk. Various foods that are Maimen's magical tools have been affected by the "food shrinking technique".

The smaller size of McDonald's food may be due to its own cost pressure on the one hand, and on the other hand, the rise of local brands such as Wallace and Tustin are also attacking it in terms of price, products, number of stores, etc.

Under pressure from competitors, McDonald's is also looking for other ways to reduce costs and promote sales in addition to food costs. Time will tell whether McDonald's can continue to create a whirlwind.

Free McFlurry, can't McFlurry afford it? Recently, McFlurry has become a trend among the bargain hunters. The zero-yuan shopping event jointly launched by McDonald's, AutoNavi, and Alipay has attracted many new customers.

For example, by typing "Oh McGod" in the AutoNavi Map App, you can draw a free McFlurry redemption coupon. You can also get a zero-yuan McFlurry special coupon in the McDonald's mini program on Alipay. The above two offers can only be unlocked through any consumption.

McDonald's generous donations attracted pagans to worship. Countless freeloaders held their redemption coupons and devoutly flocked to the holy land of McDonald's just to get a McFlurry; but when they saw the real thing, they were often disappointed.

In this regard, Pang's colleague Dahua said: "McFlurry at McDonald's has become very watery now. My family members said that it has no milk taste at all."

On the other hand, netizen Xiao He also told Brother Pan: "The McFlurry I bought recently felt like it was only half the size as before. I went to the clerk after I got it, and he gave me more."

Brother Pang found that recent Maimen consumers have a lot of complaints about McFlurry on social platforms such as Xiaohongshu and Douyin. In summary, they can be divided into two points:

First, the portion size has become smaller. Many consumers now only have half a cup of McFlurry. Some netizens said: "Is McFlurry reminding consumers not to be complacent?"

Secondly, the food became watery. Some consumers said: "It was quite full when I got it, but after stirring it, I found it was all water." "It has no milk taste at all. Did the clerk eat the whipped cream?"

In response, McDonald's employee Wagua told Pang Ge: "The company's standard for the size of a McFlurry is 6 oz. Some stores also say it is four and a half ounces for the convenience of measurement and operation. The specific amount depends on the store. If you think it's too little, you can use the small scale in the store to measure it."

1. It’s not just the McFlurry that’s shrinking

The smaller and thinner McFlurry has upset many McDonald's followers, who feel that the food has lost its soul. In addition to the McFlurry, other food categories at McDonald's have also shrunk to varying degrees.

For example, McDonald's Filet-O-Fish burgers are now no bigger than a pancake. A 185cm tall male athlete may be able to finish it in one bite. The Big Mac burger, once reserved for big eaters, has also become the size of a palm.

Meanwhile, some netizens said: "McDonald's double cheeseburger is not much bigger than my car logo, I finished it in the time it takes to wait for a red light." "McDonald's teriyaki burger, I used to be unable to finish one piece, but now I can't even finish one piece."

Nowadays, various shrunken McDonald's burgers have turned many believers into "hungry ghosts". Netizens from all over the country have posted photos of mini McDonald's foods on social platforms, some of which look like props from a miniature world.

In this regard, some netizens said: "Has the childish aesthetic spread to McDonald's?" "McDonald's burgers are sometimes compared with other burgers, and they are simply the children's version."

Why did McDonald's McFlurry and hamburger family shrink? The most fundamental reason seems to be cost control.

In this regard, the clerk Wugua told Pang Ge: "The national store standards are fixed, and the hamburger buns are from a unified supplier, but some stores may violate regulations in order to reduce costs and reduce monthly consumption, because the monthly report affects the store manager's salary."

He gave Pang Ge an example, saying: "For example, the milk paste for ice cream is added directly into the ice cream machine. Under normal operation, there will be no water. However, some stores may add water to save costs, which will make the taste different."

Another McDonald's employee said: "I always try to fill my McFlurry to the maximum, but when the store manager found out, I got scolded, saying I gave too much."

2. Low Price Alliance

Some people believe that based on the idea of ​​increasing revenue and reducing expenditure, controlling food costs may improve McDonald’s operating performance to a certain extent.

Financial data confirms this. The financial report shows that in 2023, McDonald's achieved revenue of US$25.49 billion, a year-on-year increase of 10%; and achieved net profit of US$8.469 billion, a year-on-year increase of 37%.

However, despite the "double increase" in revenue and net profit, this does not mean that McDonald's can "rest easy". After all, in terms of the domestic market alone, it is facing pressure from local rivals such as Wallace and Tustin.

Nothing is more direct than a discount, where you can get a large cup of coffee for the price of a small one. McDonald's 1+1 combo, known as the "poor man's meal", has two items for as low as 13.9 yuan; Wallace's three-piece set is priced at as low as 10.5 yuan; and Tustin's three-piece spicy burger set is priced at 15.9 yuan.

On the other hand, Tustin, which holds high the banner of "Chinese hamburger", has also come up with new products, launching Peking duck burger, sauerkraut barbecue burger, etc., to make burgers more suitable for the taste of Chinese babies.

In addition to competition in price and products, China's local fast food brands have also surpassed McDonald's in terms of the number of stores.

Relevant data shows that as of the end of 2023, the number of Wallace stores nationwide has exceeded 20,000, exceeding the total number of McDonald's and KFC stores.

Meituan’s big data shows that Wallace now has more than 1,400 stores in first-tier cities, and the average growth rate of orders and user numbers in first-tier cities has exceeded 50%.

On the other hand, Tustin now has nearly 7,000 stores nationwide, with more than 6,000 stores opened in the past three years, and the company's valuation is approximately 7 billion yuan.

In comparison, as of the end of 2023, McDonald's, which has entered China for more than 30 years, has 5,903 stores in China. The company plans to increase the number of stores in China to about 10,000 by 2028.

3. There are unique ways to save money

The "Low Price Alliance" represented by Wallace and Tustin used low prices to seize McDonald's market. In order to cope with the attack of its opponents, McDonald's not only used "food reduction techniques" but also saved costs in other aspects.

As long as we have a thrifty heart, there are always more solutions than problems, and controlling labor costs should be the first priority.

It is understood that McDonald's once recruited retirees to work in its stores on the China Senior Talent Network. Women were required to be over 50 years old and men over 60 years old. They were required to provide retirement certificates, work 16 to 40 hours a week, and have a monthly salary of 1,800 to 3,500 yuan.

In this regard, some netizens said: "Retired employees do not have to pay social security, and the company saves a lot of expenses." But the price is, "I have met older aunts cleaning in the store, and their movements are indeed slower than those of young people."

At the same time, some netizens recently discovered that McDonald's popular burgers are packaged in the same paper. The names of the four popular burgers are printed on the same paper, and then folded in different ways to cover all the burgers, saving materials and time.

In addition to cost savings, McDonald's is also lowering the prices of its products in order to counter the "Low Price Alliance."

For example, in McDonald’s Douyin live broadcast room, the original teriyaki chicken burger with soy milk was priced at 9.9 yuan, with sales exceeding 600,000; the much-criticized McFlurry also launched a discount of two for 10 yuan on the McDonald’s App.

It seems that the local forces in the foreign fast food market are making the "foreign monks" represented by McDonald's become more and more attractive. And what other wool can be fleeced from McDonald's in the future? Brother Pang will pay attention with you.

Author: Pang Ge Producer: Daman Layout: Yuqi

WeChat public account: IQ Tax Research Center