Worlds largest chain of hamburger fast food restaurants Over 31,000 restaurants in over 120 countries, $25 bn revenues

Big Mac, Egg McMuffin, Happy

Meals
Friendliness, cleanliness,

consistency and convenience

Child-friendly approach,

Ronald, bright and colorful interior, fun center, toys, food and the playground

 Domestic Sales in 1993 increasing at 4% annual rate Sales slumped to 3% decrease by third quarter of 1996, fifth quarter in a row In part, decline attributed to baby-boomers drifting away Threat from competitors like King, Wendys, and Subway and falling market share.

McDonalds had been scored dead last among fast-food restaurants since 1992
An attempt to win a new customer segment
Business strategy to keep their major markets and expanding into emerging markets

 Introduced in May 1996 as the flagship of the adult

line of burgers $200 million dollar marketing campaign Ads showed kids making yucky faces, turning up their noses at the new adult burger. Ronald engaged in adult activities like golf and pool Launched in 12,500 McDonald's restaurants in the U.S. and Canada Consumer acceptance survey: consumers in focus groups loved it, and 80% said theyd buy it

Arch Deluxe line of bacon, beef, fish, and chicken burgers. Arch Deluxe Secret Sauce (mayonnaise and peppercorn mustard) 1 sesame seed hamburger bun (potato roll style with split crown) 14 pound Topp's beef patty 1 slice American cheese 1-2 tomato slices 1-2 lettuce leaves, chopped 1 tablespoon ketchup 1 tablespoon chopped white onion McDonald's hamburger seasoning

 Arch Deluxe line of bacon, beef,

fish, and chicken burgers. Arch Deluxe Secret Sauce (mayonnaise and peppercorn mustard) 1 sesame seed hamburger bun (potato roll style with split crown) 14 pound Topp's beef patty 1 slice American cheese 1-2 tomato slices 1-2 lettuce leaves, chopped 1 tablespoon ketchup 1 tablespoon chopped white onion McDonald's hamburger seasoning

 Depending on the variety, Arch Deluxe sells for $2.09 to $2.49. Price of an average Arch Deluxe kept at 32 cents higher than a Big

Mac. McDonalds Big Mac at $1.90. Arch Deluxe for $2.99 and an Arch Deluxe with Bacon for $3.29. McDonalds basic hamburger priced at 85 cents. Burger King's 99-cent Whopper.