Starting from October 6, McDonald’s customers will be able to have breakfast all day, if that’s what they desire.
The Breakfast menu will consist, as before, in food items such as hotcakes, fruit ‘n yogurt parfaits, burritos, Egg McMuffins, oatmeal, hash browns and biscuit sandwiches. The novelty lies in providing these specialties throughout the entire day, instead of stopping their sale at 10:30 am, as before.
Moreover, in an effort to simplify menus, restaurants will remove some of the less popular items and provide just a selection of products. The exact meals on offer will vary from store to store, while iconic items like fries and Big Macs will remain available in every location.
To provide the logistics for this change, the 14,300 U.S. restaurants will have to invest approximately $500 to $5000 in new equipment, such as additional grills and separate egg and muffin toasters.
The adoption of an all-day breakfast menu has been tested since March in San Diego, and extended to Nashville and Mississippi. According to Mike Andres, president of McDonald’s U.S., the results showed an increase in customer visits, which led to the franchises voting last week for this idea to be implemented long-term, in every location.
The decision is considered to be a strategic move and the company’s biggest initiative in the last 6 years, meant to strengthen McDonald’s position on the market, after a long period of disappointing earnings. Sales have been dropping in the last 7 quarters and the popular Dollar menu hadn’t been replaced yet with an equally competitive offer.
According to an internal memo publicized by Bloomberg News, if McDonald’s sells Egg McMuffins throughout the entire day, sales could increase by approximately 2.5% a year.
Focusing on morning meals seems indeed like a lucrative idea, as shown by the success of Taco Bell’s own breakfast section. Launched in 2014, the menu which includes “biscuit taco” has helped boost sales, despite competition from other restaurant chains such as Chipotle and Five Guys Burgers and Fries.
Aside from this non-stop availability of its breakfast menu, McDonald’s has also taken other steps to improve its standing. For instance, it has begun toasting buns for longer lengths of time and searing its burgers to provide them with a more appetizing taste.
As far as restructuring is concerned, McDonald’s has announced plans to close approximately 700 restaurants this year, which means that it will be shutting down more stores than it’s scheduled to open. This is an unprecedented decision in the chain’s history, but motivated by the need to adapt more rapidly to growing competition in the market.
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