News

McD's to upgrade image, add self-serve kiosks

May 26, 2003

OAKBROOK, Ill.--In his first face-to-face meeting with shareholders, Jim Cantalupo, McDonald's new chief executive, focused on his plan to trim costs and revitalize the brand by adding new technology like self-service kiosks.

Cantalupo, who worked at McDonald's for 27 years, came out of retirement in January to succeed Jack Greenberg. Because his predecessor was unable to reverse slumping sales, Cantalupo has focused much of his efforts since then on rebuilding the McDonald's brand, according to an article in the New York Times. Like many burger chains, McDonald's has had declining sales in recent years as consumers have begun to favor healthier food options, upscale eateries and ethnic food outlets. Customer service has also been an issue for these establishments.

To reignite interest in McDonald's, which though struggling is still the No. 1 hamburger chain in the nation, Cantalupo and his management team have pledged to slow the building of restaurants in favor of building better relationships with customers.

The company will also trim operating costs by installing automatic beverage machines and self-ordering kiosks, executives said.

Cantalupo renewed his pledge to achieve 3-percent to 5-percent growth in sales and a 6-percent to 7-percent increase in operating income by 2005, the article said.