Daily Management Review

The Slow Death of McDonald's


One of the most recognizable brands in the world have been dying in the US market more than a year: the sale of McDonald's in the United States began to decline in the last quarter of the 2013th, and was reducing all in 2014. Trying to save the situation, the management of McDonald's has decided to extend the breakfast in the restaurant for the day - this move was believed to attract consumers. Instead, it may be the last nail in the coffin of McDonald's in the United States - at least, some restaurant owners make these forecasts

It should be noted that the franchise is losing market not only in the US but also around the world - sales are down in Europe, Asia, the Middle East and Africa. However, whilst responsibility for the rest of the losses is offloaded on the bad economy - thus there is hope for recovery - North America calls competitors the main reason. In particular, these are Chipotle, which is growing vigorously, and other fast foods - Five Guys, In-and-Out Burger, Shake Shack, Taco Bell.

McDonald's was the first fast-food chain, to offer special morning menu. This happened in 1979. Many consumers have been waiting with enthusiasm for the solution that will extend the offer of the menu. The ability to sell breakfast all day was discussed for many months, and in March of this year, the experiment started in franchise restaurants in San Diego (CA). Later, the leadership of McDonald said to Wall Street Journal, that "very large" proportion of franchisees voted to change the menu. That is why the restaurants chain began to serve the morning dishes throughout the day across the United States from October 6. In addition to breakfast, the network has made a number of other improvements – i.e. introduced a new item on the menu and equipped restaurants with electronic counters for orders.

Immediately after launching, voices started to boom, saying that the innovations may finish McDonald's. According to research analyst Mark Kalinowski, this decision became a new headache for operators of restaurants in the United States. "We are in the throes of a deep depression, and nothing changes," "the system, perhaps, is living out its last days" - these are the comments of the franchise’s owners, published by The Independent.

The need to prepare breakfast for the day made the chaos in the kitchen of restaurants, and additional items on the menu overloaded staff and increased the likelihood of errors. "In smaller restaurants, people stumble over each other, the equipment is reaching its capacity limits", - complain owners of the establishments. Another option, discussed by management of the brand, is to allow visitors to choose their own ingredients for the burgers. Apparently, this will only add to the load.

Finally, some operators argue that the breakfast option cramping sales of the traditional "day" dishes. It is cheaper, which means that the profits of the restaurant in general is falling, not rising.

Despite numerous complaints from operators of restaurants, fast cancellation of convenience breakfast is probably not worth waiting for: McDonald's insists that visitors love Egg McMuffin at any time of the day and "breakfast menu all day is the main query that clients do."

- The successful launch of All Day Breakfast proves that if you listen and respond to your customers and at the same time act in accordance with the great plan, the business will grow, - said Mike Andres, president of McDonald's in the United States.   

source: independent.co.uk

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