00:00There is definitely the challenge of enticing low-income diners for
00:04McDonald's without devaluing and cheapening their view of the product. With
00:08the price of gas right now and rents and also interest rates going up, consumers
00:12at the lower end of the income spectrum are feeling pinched and so they're much
00:16more sensitive. At one point they had this promotion you could get one of the
00:20regular meals plus another item for a dollar. The result of a lot of this
00:24because they've been trying a lot of things a lot of promos at the same time
00:26is that it has created a lot of complexity in the kitchen and it has
00:29hurt customer service and that has affected sales. The CEO Chris Kamczynski
00:35said he's heard customers loud and clear and that included they wanted more
00:39menu innovation and not the same old same old. McDonald's is offering 8.5
00:43billion dollars to its franchisees that most of it will come in the form of help
00:48with capital expenditure because they're each being asked to spend about a
00:51million dollars renovating because one of the problems this summer was that
00:55franchisees many of them opted out of the under three dollar menu items that
01:00McDonald's had pushed to its lowest income consumers. Earlier this year the
01:05stock was at an all-time high and it just shows how fortunes can change very
01:08quickly in the fast-food industry or the quick service industry.
