McDonald's turns to love in a bid to revive business

As part of McDonald's global campaign to boost sales and refresh its image, McDonald's Restaurants (Taiwan) Co inaugurated a new slogan yesterday -- "I'm lovin' it."

"We hope to pump in more energy into this brand name, as McDonald's in the US is approaching its 50th anniversary," Steven Lee (李明元), president of McDonald's Taiwan, told a press conference yesterday.

In addition to replacing the "We love to see you smile" phrase and logo that has been familiar to consumers for decades, McDonald's will gradually renovate the interior design of its outlets worldwide and its staff uniform, Lee said.

"We hope to build up a new image of `forever young' for the company, even though it was one of the first food chains in the world," Lee said.

A market watcher, however, said the new strategy would not remedy McDonald's sagging sales.

Market shares of major fast-food restaurants have been declining in recent years in Taiwan, except for Mos Burger, which features low-calorie food," said Josephine Kuo (郭翠彬), a director at Taylor Nelson Sofres Plc in Taipei, a UK-based market information provider and consulting company.

With growing awareness of health issues, consumers are changing from from fast food laden with high calories and fat, to light, healthy food, Kuo said.

McDonald's Taiwan has 349 outlets nationwide after closing 15 unprofitable outlets in last November and laying off 390 staff.

"It's the food and products they provide, rather than their promotional gimmicks that matters to consumers now," Kuo said.

One competitor also said she does not think McDonald's new campaign will affect her business.

"I believe consumers are inclined to avoid grease and look for a light taste," said Alice Chen (陳湘怡), a public relation official at Mos Burger Taiwan.

Mos Burger, a joint venture between Japan-based Mos Food Services Inc and Taiwan's Teco Electric & Machinery Co (東元電機), runs 53 outlets in this country and is seeking to expand by 15 more by the year end, Chen said.

McDonald's is also facing with competition from President Chain Store Corp's (統一超商) 7-Eleven stores, which started selling low-priced burgers early last month.

But Lee said he wasn't worried.

"I believe the 7-Eleven burgers provide an alternative to consumers for whom taste is not a key demand or those who don't have the time to line up at fast-food restaurant counters," Lee said.