NEW YORK – Amid a 0.2% sales decline and 1.6% drop in customers at its U.S. locations in 2013, McDonald’s CEO Don Thompson admitted that the QSR has “lost some of our customer relevance,” Bloomberg Businessweek reports.

Citing McDonald’s challenges in 2013, AdAge says that increased competition on the value front came Wendy’s and Burger King, particularly on the dollar menu.

McDonald’s is planning to focus on improving operations and the rollout of new products — after introducing too many products last year, writes AdAge.

“We introduced a number of significant new products and limited time offers at a quick pace that challenged more effective restaurant and marketing execution. Our 2014 menu and marketing strategies better balance affordability with core products, new choices and limited-time offers,” said Thompson.

For 2014, McDonald’s says that coffee will be its focus, especially around the breakfast daypart. AdAge write that Thompson said the QSR is enhancing its breakfast menu by cross-promoting it with coffee, and that changes are underway for a brand strategy that will “better resonate with our customers.”