قالب وردپرس درنا توس
Home / Business / The strategy behind McDonald's latest breakfast creation

The strategy behind McDonald's latest breakfast creation



Donut Sticks are McDonald's latest breakfast creation. The fried dough sticks come six or a dozen in one pack and are served warm with cinnamon and sugar. And McDonald's really wants you to buy coffee that suits them. Although breakfast is served all day at McDonald's, the donut sticks will only be available during breakfast time.

McDonald's ( MCD ) has been the market leader in the breakfast market since 1971, allowing franchisees to experiment in the morning with serving items. However, McDonald's breakfast business continues to slide, losing share in Taco Bell's recent breakfast menu and Dunkin's breakfast sandwiches.

Breakfast is the last limit for the restaurant business: more people are preparing breakfast at home than in the morning, which remains the only growth market for the fast food industry. Breakfast sales in fast food restaurants increased by 1

% last year, but overall sales remained at a low level.

"There is momentum in breakfast in the consumer trend," said David Portalatin, food industry analyst at NPD. "People spend a larger proportion of gastric snacks in fast-food restaurants."

As a result, breakfast has been a hot topic in past quarterly analyst-to-McDonald management conference calls. CEO Steve Easterbrook continues to be optimistic about breakfast, while admitting that the company is lagging behind its ambitious goals.

"We continue to lose more traffic than we want at breakfast," said Easterbrook on a January 30 call from Wall Street analysts.

Easterbrook noted that McDonald's successfully got customers to spend more on breakfast, and convinced them to buy more or more expensive items. However, the company is not satisfied with the sale of existing customers.

"We really want the customer to count more and more," said Easterbrook.

To solve the problem, McDonald's is considering a number of initiatives, some of which are logistical and others focused on the menu.

Easterbrook said McDonald's analyze whether it is necessary to increase his crew during the morning, when the restaurants are busiest. There are plans to add more digital kiosks to the stores, and the app will be personalized to highlight menu items that better address the individual tastes of customers.

Menu innovation is another part of the strategy, both at national and local level. McDonald's will encourage local franchisees to offer unique breakfast products and menu prices to better compete with rivals in their respective businesses. However, McDonald's will continue to test new breakfast products in all stores.

These new creations were successful. Easterbrook said the Triple Breakfast Stacks sandwich, launched in November, was one of the largest contributors to revenue growth in the last quarter.
McDonald's introduced bagels and "fresh, cracked eggs" in Canada. The company said it will continue to develop its McCafé line, which is McDonald's coffee brand in direct competition with Starbucks ( SBUX ) and Dunkin & # 39; stands. ( DNKN ) .

Speaking to analysts two weeks ago, Easterbrook said he believes "there are many more legs in McCafé," especially in coffee sales. In some new restaurants, McDonald's has experimented with Muffin Toppers and McCafe's Coffee Cakes, and the company said it will continue to develop new drinks and baked goods for McCafe.

Early last year, McDonald's tried the donut sticks at several restaurants in Illinois. It has revised the recipe, tested several forms and retested in October. They will be debuting nationwide on February 20, and McDonald's said they will be available for a limited time.

Dunkin unveiled a similar donut frieze in July, available for $ 5 in a pack. McDonald's sold Donut Frieze Six for $ 1.69 or $ 2.59 with a coffee, a corporate spokeswoman said.

Like Taco Bell, Dunkin has doubled breakfast over the last few years and added some new breakfast sandwiches. Taco Bell introduced breakfast in 2014. In the last quarter, Taco Bell was able to increase sales in restaurants that had opened at least one year by 9%, with Yum Brands ( YUM ) the owner of the company, to Attributed part to his success with his breakfast menu.

Source link