McDonald's spent millions fixing an infamous part of its business -- and it's the best decision in years

McDonald's Posts 6.2% Gain in Same-Store Sales

McDonald's sales are soaring after years of declines.

Sales at restaurants open at least a year jumped 6.2% globally, including a 5.4% increase in the US, in the most recent quarter. That's the third straight quarter of increases after two years of declines.

The company has finally turned business around by making a couple key changes to the menu, such as adding breakfast all day and offering new value options.

But there's another move that has been critical to McDonald's success: improving customer service through wage increases and training.

The fast-food chain has long been plagued by complaints about poor customer service.

Problems that customers have cited in the past include inaccurate orders, long waits for food, rude employees, and lack of cleanliness in restaurants.

RELATED: Fast-food money-saving hacks

10 money-saving fast-food hacks
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McDonald's spent millions fixing an infamous part of its business -- and it's the best decision in years

Restaurant: McDonald’s

Hack: Order two four-piece nuggets instead of one six-piece. It’s cheaper, you get more nuggets and you get more sauces. Score.

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Restaurant: McDonald’s

Hack: Order a McDouble without the ketchup and mustard but with lettuce and Big Mac sauce. You'll pay for the Big Mac taste for the price of a McDouble.

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Restaurant: Chipotle

Hack: Order half of one protein and half of another kind (like chicken and steak). You’ll almost always get more than half of each and end up with up to 1.5x the protein in your burrito or bowl for the price of a normal portion.

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Restaurant: Arby’s

Hack: Order two junior roast beef sandwiches instead of one regular classic. You'll end up with more meat for a lower price.

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Restaurant: Jamba Juice

Hack: Substitute any ingredient in any smoothie for the same price. If you’re craving a smoothie with non-fat yogurt instead of mango, or extra strawberries instead of blueberries, customize it to your liking without any extra charge. It will save you more than being charged for creating your own smoothie from scratch.

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Restaurant: Jack in the Box

Hack: Order two Jr. Bacon Cheeseburgers and combine them into one for a much cheaper version of a Bacon Ultimate Cheeseburger. 

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Restaurant: McDonald’s

Hack: Order a sausage McMuffin off of the dollar menu but ask for the sausage to be substituted with egg—an egg McMuffin for a dollar.

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Restaurant: Any pizza place

Hack: When you call to order delivery, ask if there were any orders that weren’t delivered—the pizza place will often give you those orders for a discounted price (perfect if cold pizza is your thing.)

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Restaurant: Subway

Hack: Order a Double Steak and Cheese Sub instead of the Philly Cheese Steak Sub—you’ll get the same sandwich at a normal foot-long price.

Photo credit: Getty


To try and fix things, the company made a major investment in employee wages and benefits last year, lifting the average hourly wage from $9.01 to $9.90 in July. The company says the average hourly wage will exceed $10 by the end of this year.

McDonald's also started allowing workers to earn up to five days of paid vacation every year, and invested in training with the implementation of new procedures like "ask, ask, tell" to speed up drive-through service.

"The core frustration for customers was accuracy through the drive-thru, which then impacts service times," McDonald's CEO Steve Easterbrook said on an earnings call in April. "I can't even tell you how detailed the team has got to help our restaurant teams get it right more often."

The training and wage investments have had a significant impact on customer service, according to Easterbrook.

He said the changes "have resulted in lower crew turnover and higher customer satisfaction scores... and we are gaining share relative to the [fast-food] sandwich segment."

Customer satisfaction scores were up 6% in the first quarter, compared to the same period last year, he said.

The wage investments only impacted employees at company-owned restaurants — which represents just 10% of McDonald's US restaurants, or about 90,000 employees.

But many McDonald's franchisees likely followed suit with their own wage increases. In a survey last year, several operators said they felt pressure to raise employee pay in the aftermath of the McDonald's wage announcement.

While the company is making progress with its investments in employees, labor groups say the chain hasn't done nearly enough.

The union-backed "Fight for $15" campaign, which is pressuring McDonald's to raise wages to $15 an hour, is planning a massive protest at McDonald's headquarters this week as the company kicks off its annual shareholder meeting.

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