The quick service restaurant chain’s new CEO, Steve Easterbrook, has been trying to improve declining sales. All-day breakfast is just one aspect of Easterbrook’s turnaround plan.
McDonald’s began testing the idea in select markets during the month of march.
Taking all-day breakfast nationwide is not an easy task. McDonald’s had to implement separate griddles and equip staff to manage serving all three day-parts.
Franchisees further complicate the issue by prompting corporate to reduce the number of menu items. Operators claim bloated menus put pressure on the restaurant and wait times. McDonald’s recently slashed its menu and added “healthier” antibiotic free options. New items align with consumers, which appeal to consumers current taste preferences.
McDonald’s projects it will shut 700 stores and close more doors than open this year. Stores closing has not exceeded opening since 1970 and pretty much their whole lifespan. McDonald’s has long been the king of QSRs.
Although customers are increasingly seeking healthier alternatives, all-day breakfast has long since been an outcry from the masses.
For years McDonald’s has been a staple of the unhealthy processes most QSRs practice. They have faced an uphill battle against social stigma. It becomes difficult to promote “premium” options when they have burgers on the dollar menu. Their pricing happens to be all over the place. Most customers wont shell out extra dollars for regular menu items when they can get a similar burger on the discounted menu.
McDonald’s is essentially a punching bag for nutritionist, environmentalist, and other various groups but news of all-day breakfast has created a positive buzz, something they so desperately needed.
All-day breakfast items have been limited and vary by locations. Only about half the menu is available all day. Southern states tend to favor biscuit sandwiches while the rest of the country prefers McMuffins. Menu item offering sharply differ in the north and south.
McDonald’s all-day breakfast could potentially raise profits by 4% according to RBC analyst David Palmer but it can completely backfire. Breakfast menu items are cheaper than lunch and dinner daypart and could end up causing a decrease in profits. We will just have to wait and see if this will be a success or just another major flop.
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