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McDonald's president works to control costs
March 11, 2009
The Wall Street Journal:The worsening global economy has McDonald's Corp. preparing for a difficult year, including the strengthening U.S. dollar affecting profits from international units.
Ralph Alvarez, McDonald's president and chief operating officer, is doing what he can to keep down costs.Alvarez is pruning gas-guzzling cars from the company fleet, pressing media buyers to negotiate lower advertising rates and putting the brakes on building new outlets where nearby development shows signs of weakness. At the same time, he's overseeing the McCafe rollout and improved drive-thru windows that increase sales and efficiency.
In the U.K., Alvarez directed management to examine changes in consumer buying patterns at McDonald's, customer traffic for competitors and general economic data such as projected unemployment rates. The company also has added self-service kiosks in some stores an attempt to increase sales.
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