In the meantime you can have a look at the original Chinese Meat Scandal YouTube clip, which is all about McD's and KFC. The corresponding Word List is here, and the article I got the words from is at the top of the Word List or here.
Enjoy, like, share.
Good morning, and welcome to Vocab Voyage for this morning. I was eating my porridge
this morning, and I saw McDonald's on the T.V., so I thought we'd go back and talk about
The boss, Sarah Casanova, that's the woman I saw bowing, she said sorry. She said sorry
about the tooth, and the plastic, and the running out of French Fries. She apologised, and
she bowed properly and deeply. She apologised a while back. She did some press
conference in July, and she said sorry then, but everyone thought she wasn't serious
enough. So this time she put her hair back, and she had a dark suit, so obviously someone
said to her, 'You have to look more sorry!'
It's not helping though, because McDonald's, still has declining sales. They've got
competition from the convenience stores, who are selling more and more (ready) food. The senior Vice President of McDonald's Japan, he was on stage talking about how his family
eats at McDonald's. So McDonald's are on a big offensive trying to make everyone feel at
Why? Because last year was the first year that McDonald's Japan posted a loss. Last year
they posted a loss of 21.84 billion yen, as compared to a 5.14 billion yen profit the previous
year. So quickly doing the maths, a 26 billion yen turnaround. Their revenue dropped
38 billion yen last year, and every month last year sales fell 10%. So they're in a world of
pain are McDonald's Japan.
That's Japan. What about the rest of the world? The final article talks about the troubles
Starting with the U.S., their home market. Dining habits are changing. People want healthier,fresher, more natural ingredients. Problem One. Problem Two. A lot of people are really
starting to be unhappy with McDonald's and the wage they're paying their staff. People are
starting to say it's no fair. Problem Three. The McDonald's arrangement in the U.S. operateson a franchise. So I save up lots of money I'm sure, I approach McDonald's and I buy a
franchise. I can be a McDonald's. I am one company, McDonald's are another company.
How I treat my staff is not McDonald's problem. But the law is changing maybe, where
McDonald's can be legally liable for the behaviour of their franchisees, which will really make things interesting for them. That's the U.S. Gone.
China, food safety. McDonald's always had a reputation for cleanliness in China.
McDonald's, KFC, etc, etc. I know that when I used to live in China, Akiko and I used to pop over to Zhangmutou from Huang Jiang because there was a KFC and McDonald's over there. Cause I felt, ......... A lot of those restaurants where we lived, meh; but McDonald's
and KFC were safe. Now that's been tarnished a bit with the whole expired meat scandal. Nogood for them.
India, what's happening in India? Big problem in India. McDonald's, main ingredient of their
burgers. Beef. Hindu people don't eat beef, so McDonald's has had to come up with new
recipes and new things because people won't eat their burgers because of religious reasons.The other big problem they're having, when they started in India, they had a joint venture
partner. Now they're having all sorts of arguments with him. They want to buy him out. He
doesn't want to be bought out. He's not happy. He's fighting tooth and nail, so they're having problems with that.
Back home now, Japan. The Japanese have been a bit annoyed by McDonald's and they're cost cutting exercises. I didn't know this, but in 2012, McDonald's took the menus off the
counters because people were looking at the menus too long, and they couldn't turn over the customers fast enough. Take away the menus, customers will take less time to order their
burgers, higher turnover, more money. The Japanese didn't like that.
Russia. McDonald's was a success story but now the Russian government is using it as a
pawn in the Russia and U.S. argument, and they are making life very difficult.
Latin America. More trouble with local tastes. Marketing to local tastes: rice, beans and beef.Also in Latin America no one has much money to spend on Maccas.
Europe. Europe was always the high-end McDonald's where they tested the nice,
high-end stuff, but again, in Europe people have got no money.
Long talk today, thank you very much.