McDonald's lags rivals in price and quality satisfaction, Fonto says

KFC and Hungry Jacks lead the way.  

McDonald’s is facing challenges in meeting consumer expectations, particularly in terms of food quality and price satisfaction, data analysed by consumer research firm Fonto said.

According to Ben Dixon, CEO and Founder of Fonto, McDonald’s has consistently lagged behind its key competitors, especially when it comes to customer satisfaction in food quality and price.

Fonto’s data revealed the company’s share has dropped by 1.5% over the past year, while its competitors, KFC and Hungry Jacks, have experienced moderate growth. This decline correlates directly with lower satisfaction levels, particularly around price and quality.

Despite not necessarily dropping its quality, McDonald’s is facing mounting pressure from smaller, challenger brands that are gaining a strong foothold in the market. “We see that the other competitors... are doing a really good job,” Dixon said.

Brands like Grill’d and Crust, which are perceived as more expensive, have been able to provide high-quality food and drinks, making them more appealing to a growing segment of the market.  “Guzman y Gomez is also doing very well on price and quality, living and breathing the healthy, fresh approach,” Dixon noted.

“KFC and Hungry Jacks are both sitting up around that 30 to 35% satisfaction with both price and quality, which is a fair jump above McDonald’s at the moment,” he added.

To stay competitive, Dixon suggested expanding real estate and opening more stores. Additionally, ensuring strong operations that guarantee consistent quality and delivery is key to maintaining customer loyalty.

“The biggest battleground at the moment is probably breakfast, winning the coffee wars,” Dixon added. As the breakfast and coffee sectors become more competitive, QSR brands need to produce and deliver high-quality, price-competitive breakfast options to maintain consumer loyalty.