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Courier-Mail
6 days ago
- Business
- Courier-Mail
McDonald's battles ‘fierce' Aussie competition as global sales drop
Don't miss out on the headlines from Restaurants & Bars. Followed categories will be added to My News. The famous golden arches might be losing their glow, with McDonald's recording a surprising drop in global sales as the fast-food giant battles 'fierce' competition in Australia. McDonald's reported a one per cent fall in global comparable sales in the first quarter of the year compared to the same period in 2024, which included a Leap Day. In its US birthplace, McDonald's recorded a 3.6 per cent decline in sales – marking the biggest sales drop since the pandemic, when restrictions were in place. McDonald's attributed a decrease in the number of comparable customer transactions at restaurants as a major factor behind its decline in US sales. McDonald's Chairman and CEO Chris Kempczinski said customers were 'grappling with uncertainty'. 'McDonald's has a 70-year legacy of innovation, leadership, and proven agility, all of which give us confidence in our ability to navigate even the toughest of market conditions and gain market share,' Mr Kempczinski said. McDonald's recorded a 3.6 per cent decline in sales in the US. Picture: Charly Triballeau/AFP In Australia, research suggests the fast-food giant's sales are rising, with market research firm IBISWorld estimating McDonald's sales to be $5.7 billion in 2024-2025, compared to $5.4 billion in 2023-2024. But it's not all good news, with the fast-food giant having to fight off hungry competitors eating into its market. 'While absolute sales figures might be rising, it is anticipated that McDonald's is losing market share to other fast food providers in Australia,' IBISWorld Industry Team Leader Disha Jeswanth told adding 'McDonald's faces fierce competition from several sources'. 'Within the fast food segment, the main differentiator is price in terms of value for money.' According to IBISWorld, McDonald's market share has consistently dropped from 21.5 per cent in 2021-2022 to 19.3 per cent in 2024-25. McDonald's is fighting off hungry competitors eating into its Australian market. Picture: Glenn Campbell Aside from competing against KFC, Dominos as well as burger joints of the likes of Hungry Jack's and Grill'd, McDonald's is also facing off with Mexican food brand Guzman y Gomez (GYG) which has proven itself to be a 'major emerging competitor'. 'Guzman y Gomez is capturing market share through its perceived healthier food offerings,' said Ms Jeswanth. 'While a large burger meal at Maccas is averaging above $15 these days, GYG is offering a burrito bowl for a similar price. The brand is also marketing its use of free-range chicken and high-quality ingredients. 'GYG's next move involves expanding into drive-thru operations, which will further weigh on McDonald's demand.' 'Grill'd, on the other hand, although it doesn't compete with Maccas on the basis of price, is offering gourmet burgers that are often a healthier choice.' To counter this, Ms Jeswanth notes McDonald's has continued sourcing over 90 per cent of its ingredients locally and using 100 per cent RSPCA-approved chicken. 'McDonald's also provides nutritional information with its food orders to maintain transparency. However, public perception around McDonald's food quality remains a challenge.' Guzman Gomez is a major emerging competitor against McDonald's. Picture: NewsWire/Gaye Gerard Jump in price An increase in prices, as other restaurants have done amid rising cost-of-living and inflation, have also hurt McDonald's reputation. 'McDonald's value proposition has long centred on providing affordable meals, appealing especially to budget-conscious consumers,' said Ms Jeswanth. 'However, consistent price increases in recent years, driven by rising input costs and wages have eroded this perception of value.' The price of a large fries has increased by more than 50 per cent since 2019, from $3.20 to $4.85 as of this month, while a classic Angus burger is up more than 25 per cent from $7.95 to $10. The increase has come at a time when cost-of-living pressures has changed Australians' spending habits. 'Lower-income households and younger consumers are extremely cautious of their discretionary spending', said Ms Jeswanth. McDonald's has seen an increase in prices in recent years. According to Finder's Consumer Sentiment, only 61 per cent of Australians reported spending money on food delivery or takeaway services per week in May 2025, compared to 68 per cent in May 2022. 'The cost of living is putting significant pressure on household budgets, and one area many Australians are cutting back on is non-essential spending such as takeaway,' Graham Cooke, head of consumer research at Finder told 'Fast food prices of some menu items at McDonalds have been rising faster than inflation. 'At the same time, local fast-food brands have diversified their offerings.' 'When groceries, energy bills, and housing costs rise, the convenience of restaurant-prepared meals becomes a luxury that is harder to justify for many individuals and families,' he added. 'What might have been a weekly or even bi-weekly habit could shift to a monthly treat or only for special occasions.' X Low customer satisfaction According to Sydney-based Fonto, which conducts weekly surveys of customer experiences at 19 Quick Service Restaurants (QSR) across Australia, McDonald's consistently underperforms on customer satisfaction compared to other brands across the last 16 months. In the first quarter of the year ending in April, McDonald's scored 69 per cent overall satisfaction – a drop from 71 per cent compared to the same period last year. Out of the top 15 brands, the fast-food giant was ranked last in the first quarter of this year. 'We're seeing consistently that McDonald's ranks towards the very bottom,' Fonto CEO Ben Dixon told adding it sits in the bottom third of 19 brands. Meanwhile, competitors GYG, Crust and Grill'd made up the top three brands for overall satisfaction. 'They're really focusing on fresh and healthy, they're brands that an athlete would consider buying from, and their prices aren't too far away. The gap in price used to be quite significant between, say, a Grill'd burger and a McDonald's meal, and it's not as big anymore.' Grill'd beef burgers range from $13.50 to $16.50, according to current prices listed on its website. In the first quarter of the year, McDonald's ranked 13 for price out of the top 15 brands. 'McDonald's customers have consistently got the least satisfaction with their prices than any of the other brands,' said Mr Dixon. 'So people feel like they're still paying a lot, and the quality is not there for what they're paying.' Grill'd recorded 88 per cent overall satisfaction among customers surveyed by Fonto between February and April 2025. Between March 2024-May 2024, Grill'd's overall satisfaction jumped from 85 per cent between to 88 per cent between February and April 2025. Over the same period, McDonald's dropped from 74 per cent to 69 per cent respectively. Despite the low customer satisfaction, 75 per cent of McDonald's customers told Fonto they didn't consider going elsewhere. Mr Dixon said one major reason behind this decision is proximity, with McDonald's owning over 1,000 restaurants across the country. 'If you're in a regional or rural area then it's hard to consider going somewhere else if there's nothing for a long way away,' he said. McDonald's over 1,000 restaurants across the country. Picture: Evan Morgan But as competitors open more stores the game could change. Last year, GYG announced its goal to expand its network to over 1,000 stores. 'The question that everyone probably needs to think about is, if every town had a strip, and in that strip was a McDonald's, a Hungry Jack's, a KFC and a Subway, would McDonald's hold the massive market there that it does?' Mr Dixon questioned. 'Or would people move between them because they don't want to eat a burger every night, or because the quality and the satisfaction is not necessarily as high in some of those restaurants?' The future of fast food in Australia New competitors such as US-based chicken chain Wingstop – which opened its first store in Australia this month – is also looking to take a bite out of an increasingly crowded market. 'McDonald's has stood the test of time in the Australian market, there is always the risk of losing market share to new competitors,' said Ms Jeswanth. 'International fast food giant Wendy's is set to expand to over 200 locations in Australia over the next decade, proving to be a direct competitor to Maccas.' To compete, Ms Jeswanth said brands will need to focus on providing premium quality and healthier meals at affordable prices. 'Consumer behaviour is tilting towards sustainable and healthier options, and fast food giants will need to match these preferences (including plant-based options) to remain viable in his highly competitive market,' she said. The fast food market is predicted to become more crowded in Australia. Picture: Glenn Campbell 'Despite McDonald's loyalty and scale within Australia, the brand will need to focus on bettering its offerings to remain competitive.' Mr Dixon agrees 'the competition will just get tougher'. 'If I was McDonald's or a McDonald's franchisee, I'd have my work ahead of me,' he said. 'They've got to think seriously about how they reinvent themselves again, or what they do differently to continue to dominate.' contacted McDonald's for comment but was referred to its first-quarter sales data. Originally published as McDonald's battles 'fierce' competition in Australia as global sales drop
News.com.au
23-04-2025
- News.com.au
Aussie restaurant chain responds to worker's ‘disappointing' act
A popular Australian chain has responded to a viral clip that appears to show an employee standing on a grill in order to clean the vents above it. Video footage shared on TikTok seemingly shows a Guzman y Gomez (GYG) employee standing on the cooking device in order to reach, and subsequently clean, the outlet above it. The worker doesn't appear to have placed a protective barrier between his shoes and the grill. There also appeared to be something cooking on the stove top very close by. Other employees could be seen cleaning in another area of the kitchen. 'Is that how you maintain the hygiene of the food. So disappointing,' the concerning clip was captioned. As the clip gained momentum online, GYG has issued a statement on the incident, stressing it was commitment to food safety. 'We are aware of an incident that does not align with GYG's commitment to food safety and the safety of our crew and guests. The video that has been shared shows actions that are not in line with GYG's procedures or standards that our crew are trained on,' a spokesperson told 'We take this matter seriously and are currently investigating the situation to ensure it is addressed appropriately. 'We appreciate the understanding of our guests and remain committed to delivering an outstanding experience.' After watching the video, some Aussies have declared they will 'never eat' at the chain again after the footage was posted online. 'I'm never ordering from them again,' one person commented. Another said: 'That's not right, those shields slide out to clean.' However, many hospitality workers defended the employee's actions. 'People who don't work in the industry will never understand even if there wasn't a mat on the grill the grill would also be cleaned after and once it's turned on the germs burn off,' one said. Another added: 'If the range hood gets this much detail clean. the grill will be alright after they clean it.' 'You do this in every workplace that has a grill. W�e do the same where I work, and obviously the grill gets cleaned,' one said. One social media user commented: 'Absolutely nothing wrong with this, standard procedure for most restaurants.' 'People who don't work in hospitality, they will never understand,' another said.
Perth Now
23-04-2025
- General
- Perth Now
Employee slammed over shocking act at fast food outlet
Australian fast food chain Guzman y Gomez is under fire after an employee was seen standing on a grill as they cleaned the rangehood above at one of its Melbourne eateries. Footage showing the employee standing on the grill in their shoes was shared to TikTok this week. There does not appear to be a mat or any sort of protection between the employee's shoes and the grill surface. Guzman and Gomez said it was investigating. 'We are aware of an incident that does not align with GYG's commitment to food safety and the safety of our crew and guests,' the company said. 'The video that has been shared shows actions that are not in line with GYG's procedures or standards that our crew are trained on.' Fast food chain Guzman y Gomez has come under fire after an employee was seen standing on a grill as they cleaned vents at a Melbourne outlet. Credit: Seven The clip — shared under the title 'Guzman y Gomez is that how you maintain the hygiene of the food. So disappointing' — drew a mixed reaction online. '(People) who don't work in the industry will never understand — even if there wasn't a mat on the grill, the grill would also be cleaned after and once it's turned on the germs burn off,' one person wrote. 'You can't see the mat on the grill,' another person said. 'Absolutely nothing wrong with this, standard procedure for most restaurants,' yet another person wrote. But others were less than impressed. One person who described themselves as an 'ex-hospitality veteran of 10 years' said at they had 'never stood on any appliance, grill or stove or bench ... to clean anything higher, always use appropriate means such as a ladder'. 'Problem is not shoes. It's the cleaning being done while something is cooking right next to it,' another person wrote, referencing the pan on the lit gas burner next to the grill. 'Sorry it's not right to stand on grill,' another person added.
7NEWS
23-04-2025
- General
- 7NEWS
Guzman y Gomez employee slammed for standing on grill to clean rangehood at Melbourne restaurant
Australian fast food chain Guzman y Gomez is under fire after an employee was seen standing on a grill as they cleaned the rangehood above at one of its Melbourne eateries. Footage showing the employee standing on the grill in their shoes was shared to TikTok this week. There does not appear to be a mat or any sort of protection between the employee's shoes and the grill surface. Guzman and Gomez said it was investigating. 'We are aware of an incident that does not align with GYG's commitment to food safety and the safety of our crew and guests,' the company said. 'The video that has been shared shows actions that are not in line with GYG's procedures or standards that our crew are trained on.' The clip — shared under the title 'Guzman y Gomez is that how you maintain the hygiene of the food. So disappointing' — drew a mixed reaction online. '(People) who don't work in the industry will never understand — even if there wasn't a mat on the grill, the grill would also be cleaned after and once it's turned on the germs burn off,' one person wrote. 'You can't see the mat on the grill,' another person said. 'Absolutely nothing wrong with this, standard procedure for most restaurants,' yet another person wrote. But others were less than impressed. One person who described themselves as an 'ex-hospitality veteran of 10 years' said at they had 'never stood on any appliance, grill or stove or bench ... to clean anything higher, always use appropriate means such as a ladder'. 'Problem is not shoes. It's the cleaning being done while something is cooking right next to it,' another person wrote, referencing the pan on the lit gas burner next to the grill. 'Sorry it's not right to stand on grill,' another person added.
Yahoo
22-04-2025
- Yahoo
Fast food worker seen in 'disappointing' cleaning act in front of customers: 'Significant risk'
Guzman y Gomez is investigating after a worker was filmed standing on top of a hot plate used for cooking food while cleaning this week. Footage of the incident was captured by a stunned customer at the Brunswick restaurant in Melbourne, throwing the health and safety standards of the nationwide fast-food chain into question. In a short, 18-second video the worker is wearing shoes and appears to be standing on a hot plate while wiping the extractor fan vents above the grill. Food is bubbling away on the stove a short distance away from where he stands while his colleagues work around him in the kitchen. The customer who captured the footage called the situation "disappointing" and questioned the store's health and safety standards online. "Is that how you maintain the hygiene of the food?" he asked. A food safety expert told Yahoo News the scene poses "significant risk" for both the worker and for overall food safety — with the chain, affectionately known as GYG, telling Yahoo News it is investigating and it takes the matter "seriously". There was a mixed response to the footage from Aussies, with some saying it wasn't too bad since the hot plate could later be cleaned. Someone who claimed to be a Guzman y Gomez (GYG) worker commented saying this behaviour was "standard" practice. However, many others admitted they were appalled the worker would choose to do this, never mind so openly. "I can't believe my eyes, I go here all the time," one person wrote, while another admitted, "I'm never ordering from them again". 👩🦳 Uber scam warning after driver's 'scary' request to Aussie woman 🐴 UberEats worker banned for delivering food on horseback 👀 UberEats 'delivery hero' scores $6 for simple act Yahoo News reached out to GyG and a spokesperson confirmed they are aware of the incident, saying "that does not align with GyG's commitment to food safety and the safety of our crew and guests". "The video that has been shared shows actions that are not in line with GYG's procedures or standards that our crew are trained on," the spokesperson said. "We take this matter seriously and are currently investigating the situation to ensure it is addressed appropriately. "We appreciate the understanding of our guests and remain committed to delivering an outstanding experience." Edward McCartney from Food Safety Plus viewed the footage and told Yahoo News this type of behaviour "poses a significant risk" for both the worker and for overall food safety. "Using cooktops in this manner increases the chance of slips, burns, or equipment damage. It also introduces the potential for contamination of food contact surfaces, which is unacceptable," he explained. "Employers have a duty of care to ensure their staff are trained and equipped to carry out cleaning tasks safely." He urged GyG to "regularly review their workplace safety protocols and food safety programs to prevent unsafe practices" like the one in the video. Last year McDonald's came under fire when a tradie was spotted standing on a counter at Queensland's Booval restaurant while wearing their working boots near the deep fryer. Weeks earlier, a manager was spotted in the restaurant drying a mop head under the same deep fryer where fries had been boxed up ready to be served to customers. Do you have a story tip? Email: newsroomau@ You can also follow us on Facebook, Instagram, TikTok, Twitter and YouTube.
