Chick-fil-A Is Stealing The Happy Meal Crowd From McDonald's
AP
For the first time in 25 years, the company has lost its status as the No. 1 chain with the most "kid appeal" and Chick-fil-A has taken its spot, Crain's Chicago Business reports based on findings from Sandelman & Associates Inc, a restaurant research firm.
Happy Meals are vital to McDonald's business. They account for 10% of the company's revenues and help the company connect to large swaths of potential lifetime customers at an early age.
But kids and their parents are losing interest in them. Families with a child age 12 or under represent 14.6% of McDonald's customers today, down from 18.6% in 2011, according to Technomic.
"Kids are more sophisticated," Mary Chapman, director of product innovation at Technomic, told Crain's. "They're not just looking for the Golden Arches and the toy."
Part of the shift could be due to the fact that more millennials are becoming parents, and millenials favor fast-casual chains, such as Chipotle, over fast food.
The number of 22- to-27-year-olds visiting McDonald's monthly has been flat since 2011, according to Technomic data cited by the Wall Street Journal. Over the same time period, the number of 19- to 21-year-olds visiting the chains has fallen by 13%.
McDonald's is trying lure back young families by redesigning its happy meal logo and promoting more nutritious alternatives to french fries and sodas for its kids' meals, such as carrots, apple slices and milk.
McDonald's global sales at stores open at least 13 months declined 3.7% in August. Same-store sales in the U.S. slid 2.8%, following a 3.2% decline in July and a 3.5% decline in June.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
- Experts warn of rising temperatures in Bengaluru as Phase 2 of Lok Sabha elections draws near
- Axis Bank posts net profit of ₹7,129 cr in March quarter
- 7 Best tourist places to visit in Rishikesh in 2024
- From underdog to Bill Gates-sponsored superfood: Have millets finally managed to make a comeback?
- 7 Things to do on your next trip to Rishikesh