In the mid-1990s

In the mid-1990s, however, McDonald’s fortunes began to turn. The company appeared to fall out of touch with both its mission and its customers.
? For example, Americans were looking for fresher, better-tasting food and more contemporary atmospheres. They were also seeking healthier eating options. In a new age of health-conscious consumers and $5 lattes at Starbucks, McDonald’s seemed a bit out of step with the times
McDonald’s failed in this period because they lost of identity. From the start, Kroc preached a motto of QSCV—quality, service, cleanliness, and value. However, by McDonald’s continued opening new restaurants at a ferocious pace, as many as 2,000 per year. The new stores helped sales, but customer service and cleanliness declined because the company couldn’t hire and train good workers fast enough.
Moreover, McDonald’s increasingly became a target for animal-rights activists, environmentalists, and nutritionists, who accused the chain of contributing to the nation’s obesity epidemic with “super size” French fries and sodas as well as Happy Meals that lure kids with the reward of free toys.
Although McDonald’s remained the world’s most visited fast-food chain, the once- shiny Golden Arches lost some of their luster. Sales growth slumped, and its market share fell by more than 3 percent be-?tween 1997 and 2003. In?2002, the company posted its?first-ever quarterly loss. In the?face of changing customer?value expectations, the company had lost sight of its fundamental value proposition?