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McDonald's looks to DIY burgers to lift sales in the US

Bloomberg

The do-it-yourself craze could soon infect the Big Mac with a trial into customised burgers likely to be rolled out more broadly to McDonald's restaurants in the United States.

The build-your-burger concept, currently offered at four McDonald's fast food restaurants in California, is likely to be trialled in other states in the US as McDonald's Corp attempts to pull out of the worst sales slump in a decade.

The test, which lets customers pick out burger toppings such as jalapenos and tortilla strips on a touch screen, will be taken to additional markets depending on how the trial goes, said Lisa McComb, a spokeswoman for McDonald's. The program started late last year at an Orange County restaurant and then expanded to three more McDonald's in August.

The world's largest burger chain, which for years shunned customisation in favour of speed and efficiency, is now playing catch-up with its competitors. Other US fast food chains such as Chipotle Mexican Grill Inc. and Potbelly Corp. allow customers to dictate their orders. McDonald's same-store sales fell 0.2 percent last year in the US, while they rose 5.6 percent at Chipotle and 1.5 percent at the Potbelly sandwich chain.

"McDonald's sales are declining, so they're looking for another way to generate revenues and reach a different crowd," said Joel Cohen, president of the Cohen Restaurant Marketing Group in Raleigh, North Carolina.

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Last week, McDonald's posted its worst monthly same-store sales decline since 2003, hurt by sluggish demand in the US, as well as a food-safety scare at a supplier in China. Sales at stores open at least 13 months slumped 3.7 percent in August, the Oak Brook, Illinois-based company said in a statement. Analysts had estimated a 3.1 percent drop.

McDonald's Australia recently expanded home delivery options, originally trialled in Sydney only, to restaurants in Victoria, Queensland and West Australia. A spokeswoman for McDonald's Australia said there were no current plans to trial the DIY burger options here.

While the burger-building program could broaden the appeal of McDonald's in the United States, the chain also risks turning off loyal customers if it takes too long to prepare a meal, Joel Cohen said.

"I'm just wondering if they're forgetting about their strengths, which are speed and convenience," he said. "What's going to be too long when you customise a burger, and is that going to upset a lot of customers?"

At Chipotle Mexican Grill, customers stroll down a service line, adding pinto or black beans, tomato and corn salsa, cheese, lettuce and sour cream to their burritos. Potbelly also lets diners choose from a lineup of toppings, such as hot peppers, tomato and oil.

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It's not like that at McDonald's where the touch screen service is offered. Customers order from a set menu and cheeseburgers come topped with the standard: American cheese, pickles, minced onions, ketchup and mustard. With the build-your-burger test, there are 22 topping options, including guacamole, bacon, grilled onions, chili-lime tortilla strips and spicy mayo.

There are two bun choices and three cheeses: American, sharp white cheddar and pepper jack. Customers tap their options into the screen themselves, which may help reduce communication errors - though it doesn't keep a slow diner from holding up the line with an indecisive moment.

The program also may coax customers into paying a bit more for their burger. That's the case for 32-year-old Nicole Taylor, a McDonald's customer in California who used the new system to make a burger with cheddar cheese, mushrooms, tomato and lettuce.

"It tasted great," she said. "It was worth it to get white cheddar and the artisan bun."

The stay-at-home mum, who usually gets her fast-food fix at In-N-Out Burger, stops into McDonald's once every couple of months for some chicken McNuggets and French fries. While the customised approach was nice, McDonald's still has an uphill battle against her go-to place for burgers, Taylor said.

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"I still prefer In-N-Out," she said.

Bloomberg, with www.goodfood.com.au


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