The first year of the new millennium will not be remembered with affection by the Scandinavian arm of McDonald’s Corporation.
So great was the loss of market share to local rivals during 2000, especially in Finland and Denmark, that irreverent Scandinavians now dub the global brand ‘Little Mac’.
In Finland, where McDonald's has spent $100 million in purchases over the past five years to build an 84-outlet chain, its market share sagged from 50% to 40% in twelve months, munched away by local rivals Hesburger and Carrols.
The former’s slice of the national burger grew from 20% to 34% between 1998-2000, while the latter saw its market share soar from 16% to 26% in the same period.
McDonald’s fairy tale was equally Grimm in Denmark, where its ninety-six outlets squeezed a puny $1.4m profit last year. According to local ceo Jesper Gad Andresen, this lackluster performance was due to encroachment by new fast food chains and Danes’ greater choice of eating places.
News source: Advertising Age - International Daily