How the McWrap is killing McDonald's business

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McDonald's

The McWrap was supposed to help McDonald's compete with Subway and Panera Bread.

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Instead, it's slowing down service in the drive-thru and exacerbating the brand's already-tense relationship with franchisees, reports Stephanie Strom at The New York Times.

Analysts blame issues caused by the McWrap for the brand's severe drop in US sales. Today, McDonald's announced sales fell 4%.

The McWraps, which were introduced two years ago, have grilled or fried chicken with mixed greens, cucumbers, tomatoes, and cheddar cheese. They're topped with ranch, sweet chili, or garlic dressing.

McDonald's decided to sell the McWrap in the US after seeing how popular it was in Europe. Internally, executives called it the "Subway crusher."

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The brand has had trouble connecting with millennials because of the perception that it sells junk food, according to Businessweek.

But instead of bringing in new customers, it appears the McWrap has alienated existing ones.

McWraps take 60 seconds on average to assemble, compared with 10 seconds for a burger.

This has contributed to longer drive-thru wait times, according to the Times.

The chain's average drive-thru wait is currently three minutes and 9.5 seconds, which is the longest average wait time in at least 15 years, according to a study by QSR Magazine.

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McDonald's said it would add prep tables US kitchens to make McWrap assembly easier on the workers.

But this angered franchisees, who said the expensive equipment was one more thing hurting their profits.

The franchisees also said they were frustrated to spend money on a product that wasn't selling well, Strom writes.

A former McDonald's executive, who wished to be anonymous, told The New York Times that McDonald's will probably end up killing the McWrap.

"What (customers are) waiting for is a better hamburger from McDonald's, not a wrap," he said.

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