My chosen article to dish out for today’s Daily Dose of Business News is about Business Insider’s “McDonald’s killed one of it’s customers’ favorite things about eating there – and now Taco Bell is cashing in“.
In order to maintain a business, an owner should be innovative and this trait seems to avoid McDonald’s. Instead of innovating their menu to still offer $1 food to their customers, they solved their problem by bundling a few items that would put the prices beyond a dollar. This made budget conscious consumers to stay away or think twice in eating out with McDonald’s. Their favorite food would now cost them more than what it used to be and they don’t like it.
Taco Bell on the other hand thought of a way on how to still capitalize on those budget conscious consumers and they are winning. Aside from not changing their dollar meals they were able to offer new dollar meals through innovating their existing products that costs less than what they used to offer. This innovation boosted their sales greatly that they are causing a massive headache on competitors.
Having a product that works is good but the product should not end there but rather be developed further. The consumers might not embrace the changes that would occur on the product that they love before if they don’t get the same thing that they love about the product. In the food industry, you have to consider the things that attracts the customers to your products. It could be the taste, ambiance, price or convenience. With the changes imposed by McDonald’s it seems that price is a great factor to their customers and didn’t figured it out.
They thought that the quality of food they serve are the contributors to their success but the consumers say otherwise. Taco Bell meanwhile are willing to the same products on the market at the same selling price but would not hit their bottom line that much. Aside from not changing their dollar meal offerings, they also offered new products that gives the budget conscious consumers a choice, and those new products are bulling their way on the menu, something that McDonald’s have failed to do.