McDonald's US franchisees want a chicken sandwich for rival Chick file A, as the South chain's threat to business continues to grow.
"A chicken sandwich at McDonald's should be our top priority," the National Owners Association Board said in an email addressed to other operators on Wednesday.
US franchisees formed NOA last year when the Chicago-based firm pushed discounts and expensive high-tech store refurbishments, which owners say were weighing on profitability.
McDonalds carries Chicken McNuggets and McChicken sandwiches. But the board wrote in the e-mail that they are not competing in the premium chicken category, with either a grilled or crispy alternative.
"Chick Fil As's results show the chicken's power," wrote the board.
This year, Chick-File-A ranked highest of all fast-food chains on the American Customer Satisfaction Index. McDonalds landed at the bottom of the list despite investments intended to enhance the consumer experience, such as self-catering kiosks.
Atlanta-based Chick File A has also grown outside its southeastern stronghold in recent years, and opened places in New York City and Seattle. According to Nation's Restaurants News, the chicken chain is now the nation's third largest restaurant chain on sale, just after McDonald's and Starbucks. McDonald's has about 1
The board wrote that the results of McDonald's US Southeast market "should concern everyone."
The board suggests that McDonald's start by testing his Southern Style Chicken Sandwich, with some tweaks lifted from the Chick file's playbook – serves sandwiches in a foil pouch and crumbles the pile. McDonalds drew the sandwich from the national menu several years ago.
In October 2018, the chain started an Ultimate Chicken Sandwich in over 160 locations in Washington. The company also plans to launch a spicy chicken sandwich and spicy chicken offer in mid-September, according to Business Insider.
McDonalds did not immediately respond to a request for comment.
Since franchisees formed NOA, the company has reduced the pace of its stores, so that owners can be renovated for a further two years in exchange for smaller corporate financing. The group will next visit Dallas in October.
Read the whole e-mail:
It is hard to believe that we are halfway through 2019. It has been a whirlwind with many changes. We have newly elected leadership in NFLA with a much different approach to management. Mark and the team are actually leading and therefore we voted for them. The company begins to appreciate it management. Slowly. The change is difficult. We still have a job to do.
We have changed the focus of our drive through, where our customers will use us the most. We have reengaged the gate keeper. We study our business to ensure our speed and efficiency. We find ways to drive profitable growth. Still, we still lose guest numbers. This continues to be a concern. Yes, there are some changes in how our guests use us. Larger orders earn more customers, but the size of the loss in the transaction rules is greater than can be explained in order aggregation (especially in Southeastern United States).
Two things come to mind. First, our approach to value. We learned from last year that daily value at national level is impossible and ineffective. Dollar Drinks is the last aspect of D123 that must be removed from OPNAD's calendar. It does not work for the majority of the United States. For the markets it is, they can continue to support it at the local level. This is where daily value should be determined and supported. There is the possibility of agreement at the national level, but should be used sparingly. We need to find more sustainable growth opportunities. Price is not the answer, especially in today's economic environment.
Second, our product promotion. Our success in Quarter Pounder shows what we can do when we market a product our customers want from us. This helped us improve the product, even though we have sacrificed speed in the process. But promoting customer favorites gives results. We want us to say the same about worldwide favorites. They may be favorites abroad, but they are not our customers' favorites. A favorite, which our customers want, is a chicken sandwich. Unfortunately, they have to go to Chick File A for that. Chick File A results show the chicken's power. Yes, we have great Chicken Mcnuggets and our McChicken is a very good product. But we do not compete in the premium chicken sandwich category, either grilled or crispy. Our results from the US Southeastern markets should address everyone. You can't have Chick File A in the market or to the extent that they have them in the southeast, but they come. And they don't discount.
A chicken sandwich at McDonalds should be our top priority. JFK called for a man on the moon, our conversation should be a leading chicken sandwich. We don't have to reinvent the wheel. We didn't find the drive through, we perfected it. Chick File An Invented Chicken Sandwich, But We Can Do Better. Our Southern Style Chicken sandwich was very close to category leading. It needs some tweaks. We need to serve it in a foil bag and we have to butter the pile, but the patty recipe was excellent. It can be served in our existing kitchen within our existing service times (even faster). We should test it in the south and if successful, we should put it ON as soon as possible. If it's not, then in the word of Peace "Someone can come with a world class Chicken Sandwich !!"
Food is still the driver of our business. Food that is irresistible and fast. Food we didn't need to discount. We get the food right and the guests count as follows.
Your "reach for the moon" NOA board.