After years of success, McDonalds is now struggling to appeal to millennials.
McDonalds recently reported its biggest decline in global same-store sales since 2003 this month. From the looks of it, it doesn’t look like it’s going to get any better for them. Sales at restaurants opened for at least 13 months have been flat or declining for most of the past year.
Millennials seem to be simply more health conscious. They look towards fast-casual restaurants like Chipotle, Panera Bread, and Pieology for their meal options. Not only do this businesses offer the same quick service, but are also fresher and healthier than their fast food counterparts.
According to Technomic data, U.S. diners aged 19 to 21 who eat at McDonald’s each month has drop by 12.9 percentage points since the beginning of 2011. Monthly diners age 22 to 37 has been relatively flat.
On the other hand, diners of fast-casual restaurants age 19 to 21 has seen an increase of 2.3 percentage points and 5.2 percentage points for those age 22 to 37.
Looks like Chef Roy Choi‘s plans to open up his healthy fast-food chain could be a great business move.