McDonald's upcoming menu cutswill likely hit three menu board icons hardest: Quarter Pounder with Cheese, Premium Chicken Sandwich and Snack Wrap.
Those, at least, are the cuts now being tested at McDonald's restaurants in several key markets. In the test, Quarter Pounder with Cheese offerings are cut from the current four to one. Premium Chicken sandwiches and Snack Wraps are cut from three to one, says Lisa McComb, a McDonald's spokeswoman, in an e-mail.
The test is taking place at McDonald's stores in Delaware, Little Rock; Waco, Texas; Bakersfield, Calif.; Macon, Ga.; and Knoxville, Tenn
"The tests are designed to determine what works and what doesn't within our restaurants by considering the operational experience, customer response, price points and other important information which may inform future decisions," McComb said.
Under pressure to simplify its menu, the fast-food giant last week announced it will pare back its menu by at least eight items beginning in January. McDonald's also will cut the number of Extra Value Meal offerings from 16 to 11. Later in 2015, it also is expected to announce specific ingredients that will be eliminated from McDonald's products.
But one franchise consultant says McDonald's isn't cutting nearly enough items. "It's a drop in the bucket compared to what they need to do," says Richard Adams, owner of Franchise Equity Group. He suggests that McDonald's eliminate at least one-third of its 100-plus menu items.
Many items that sell poorly remain on the menu for "politically correct" reasons, says Adams. Even franchisees haven't been told yet by McDonald's which items will be yanked.
"Our intent is to have a cleaner menu board that is easier for customers to absorb," says McComb. "We'll be clearing the path for future menu innovations."
One of those potential innovations: Fresh Baked Muffins that some McDonald's stores in Michigan are testing at breakfast. The muffins, which are baked in the store, sell for $1.49. But Adams says they may be troublesome for franchisees because they require 47 minutes to bake — and because they extend the menu even more.
McDonald's also is giving regional franchisees the ability to customize menus to local tastes, says spokeswoman Becca Hary, like iced coffees in Boston and sweet tea in the South.
"Smart restaurants have limited menus," says Adams. "That's the way we used to be."
Last week, McDonald's announced — but did not specify — the planned menu cuts after reporting disappointing results for the month of November, particularly in the U.S. Sales at domestic stores open at least 13 months fell 4.6% compared with the same period in 2013.
For McDonald's, it's about trying to quickly move on two critical fronts at once. It wants to reduce costs and improve service time by reducing the size of its bloated menu. And it wants to offer items that appeal to younger consumers who demand choice, variety and value.
McDonald's menu complexity has spun out of control as it added roughly 100 new items over the past 10 years. This not only makes it harder to prepare the items — but for customers to navigate all of the offerings.
McDonald's also has said that it's expanding its "Create Your Taste" customized menu offerings to 2,000 stores in 2015. The burger giant also is planning a new ad campaign in 2015 — and is considering advertising in the Super Bowl.
Even with all of these changes in the hopper, at least one analyst is unimpressed. "A turnaround will take time given what we believe to be a consumer perception issue around the food," said analyst Lynne Collier of Sterne Agee in a note to investors.
