Is McDonald's planning to rebrand?

We recently stumbled across this one news article- a very interesting one, at that- the subject matter of it being McDonald's. The popular fast food giant is planning to rebrand itself. 

Rebranding refers to changing the corporate image (of a company or an organization).

Now the question arises, will this be a good move? Is this plan fool-proof? Will this work out well for them?

To coincide with a PR storm that unraveled around tainted meat used by McDonald’s from a food supplier- Husi Shanghai- the chain is embarking on a year-and-a-half-long rebranding plan to reshape its basic offerings including business value, service, marketing and menu.

“During the quarter, we evolved our strategic 'Plan to Win' framework to enhance our focus on the customer through insights, planning and actions. To reignite momentum over the next eighteen months, we’re focused on fortifying the foundation elements of our business. We plan on doing that by concentrating our efforts on compelling value, marketing and operations excellence.” said McDonald’s president and CEO Don Thompson. "We aim to become a more relevant and trusted brand."

The decision about rebranding comes after McDonald’s announced that in its second quarter , comparable sales increased by just 1.1% in the Asia-Pacific, Middle East and Africa while the operating income declined by 2% in the same time period. 

Globally, McDonald’s will be reshaping its basic offerings including business value, service, marketing and menu. There will be no overhaul of the logo.

Given the global scale of the Husi Shanghai PR crisis, would this one-size-fits-all template help turn the tide for all local chains around the world?

Rachel Catanach, managing director and senior partner at FleishmanHillard in Hong Kong suggests McDonald’s should better understand the drivers impacting its reputation in different markets. “In China and Hong Kong, it’s food safety; in other markets, it’s dietary concerns or service issues,” she said.

“A rebrand will only have a skin-deep impact unless McDonald’s really solves some of the business issues it seems burdened by, including supply chain integrity and service quality. Otherwise, rebranding will be as effective as a sticking plaster on a deep cut.”