McDonald's CEO told investors last week his company will go back to basics.
The flip comes after research revealed customers had fled the chain not to fancy, fast-casual restaurants like Panera and Chipotle, but to other fast-food joints like Burger King and Five Guys.
To escape the pickle, McDonald's plans to beef up its burger recipes; roll out mobile ordering and home delivery; and fork over $1.1 billion for store renovations.
The company will no longer dish out wraps, salads, oatmeal, and other high-end food.
The move comes two years after McDonald's canned the CEO's predecessor and Consumer Reports ranked the chain's burgers as the nation's worst.
The lessons here are basic:
- No business can survive if its offerings are flawed
- Sound strategy often lies in what a business chooses not to do