Thursday, 25 July 2013
McDonalds talks down Australian economy and tells whoppers to save face as sales fall
Reuters 22 July 2013:
The world's biggest restaurant chain by sales reported a lower-than-expected quarterly profit and said it expects global same-restaurant sales in July to be relatively flat, sending its shares down almost 3 percent in midday trading.
Camden Haven Courier 24 July 2013:
McDonald's, the world's biggest fast-food chain, says sales in Australia are going backwards, citing incorrect figures on the level of youth unemployment to help explain why fewer people are buying its burgers and fries.
Although the introduction of the "Loose Change" menu in 2012 bolstered sales of its food last year, thrifty consumers have withdrawn from even that bargain basement offer and are spending less at the McDonald's counter.
Addressing investors in the US, McDonald's global chief executive and president Don Thompson warned that lower levels of spending in Australia and cut-throat competition among fast-food chains in the region had slashed revenue for the company.
He told the mostly US audience that the economy in Australia had worsened since 2012 and is reported to have said that youth unemployment had hit more than 25 per cent…..
So has Australia's youth unemployment hit more than 25 per cent as Don Thompson asserts?
This is what the International Labour Organisation's report Global Employment Trends For Youth 2013 states:
In June 2013 Forbes, The Centre for American Progress and Armstrong Economics were reported that youth unemployment in the USA has hit 16.2 per cent.
While the Australian Bureau of Statistics's 6202.0 Labour Force Australia states that in June 2013 the unemployment rate for people looking for full-time work in the 15-24 year old age group was 11.2 per cent and the unemployment rate for those looking for part-time work in that age group was 11.7 per cent. Australia's overall unemployment rate is currently 5.7 per cent.
So it seems that Mr. Thompson might be searching just a little to hard for excuses and, if he were to look at McDonalds history in Australia of poor workplace practices and equally poor corporate behaviour he might find the real answer as to why its 'burger and fries' sales are falling in this country.
Background:
McDonalds in Tecoma, Victoria - BurgerOff, Tecoma Village Action Group, Tecoma Petition, NO McDonalds in The Dandenong Ranges
Labels:
corporate bullying,
food,
McDonald's,
multinationals
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