McDonald's eyes range to draw 'casual diners'

by Gemma Charles Marketing 08-Jul-08, 08:00

LONDON - McDonald's is to roll out a raft of premium products to appeal to cash-strapped consumers trading down from casual-dining outlets.

Jill McDonald, McDonald's senior vice-president and chief marketing officer, UK and Northern Europe, said that the chain would step up its menu innovation at all levels over the coming year. She added that the credit crunch could work in the fast-food chain's favour.

'As people fall out of the casual-dining sector, we hope to catch them with our premium offerings,' said McDonald. 'McDonald's isn't recession-proof, but we do think we are recession resistant.'

Last year, it rolled out a limited-edition range of deluxe beef and chicken burgers in the UK, served in ciabatta bread. It has also started to stress the provenance and quality of its Happy Meals in a campaign launched last week, created by Leo Burnett.

However, McDonald said the chain would continue to cater to entry-level consumers whom it has targeted with its pound-saver menu, and said there would be product innovation in this area.

McDonalds' strategy comes as rival Burger King aims to enter the casual-dining arena by using Aberdeen Angus beef and trialling more premium ingredients such as chorizo and tiger prawns.

Its much-promoted roll-out of a £95 burger last month, which entered the record books as the world's most expensive, was intended to encourage consumers to reappraise their perceptions of the brand.

View Jill McDonald's interview in full.