This week, an announcement was made the McDonald’s is going to be closing hundreds of restaurants around the world. This is a result of a continuing decline in sales around the world. This year, McDonald’s will be closing a minimum of 700 of its restaurants.
Between January and March of 2015, there was a 2.3% drop in sales, as well as a 28% decrease in operating revenue. this is not the beginning of losses suffered by this company, as this trend has been going on for a few years now.
Steve Easterbrook, the new CEO of the company, stated that significant changes will have to be made in order to improve the reputation of this infamous chain.
The decline of McDonald’s is just one of many examples of how people are becoming more health conscious and less likely to buy fast food and other types of junk food. Coca Cola is another company that is experiencing decline due to this trend exclaims Bruce Karatz. Burger King is taking action to make themselves appear healthier as well, such as removing sodas from kids meals. Additionally, it was recently reported that in the United States, the sale of organic food has dramatically increased to more than 35 billion dollars annually.
Essentially, people are more interested in health than they were in years past, and the market is showing it through declining fast food sales and increasing health food sales.