Although initially this measure was considered a strategic victory for the company, in order to boost sales and customer engagement, in fact the move has proven to be nightmarish for many restaurants.
While clients may seem content with the new meal option, it seems this hasn’t actually boosted business, as restaurants were proven disastrously unprepared for this launch.
Just 12 days have passed since the national roll-out, but franchises have already been reporting overwhelming expenses associated with this change, as well as other problems caused by the introduction of new food items.
At first, 90% of McDonald’s franchise operators had actually voted in favor of the all-day breakfast, but now it seems this decision is regretted by many.
In order to serve the new all-day breakfast, significant investments have been made, ranging from $5,000 for restaurants that only required additional equipment, to a staggering $650,000 for remodeling entire kitchens.
Moreover, owners have had to hire new personnel, following the launch, to be able to provide customers with the extended menu.
In a survey conducted by Nomura analyst Mark Kalinowski on 29 franchise owners who operate 226 McDonald’s restaurants, greater insight was given into the struggle experienced by these establishments.
For instance, it was reported that many McDonald’s kitchens are overwhelmed and working against the clock in order to prepare the new menu.
Although it had been recommended to hire new workers, in some areas the job pool barely provides franchises with minimum staff, and it’s increasingly difficult to bring newcomers.
As a result of being understaffed while turning breakfast into an all-day fixture, service speed has also been severely affected, and business has been greatly perturbed. Customers have actually quit frequenting certain restaurants “in droves”, after being dissatisfied with overall quality and service.
This problem is particularly obvious in small stores, where the commotion is tremendous, and the tiny space is grossly insufficient. Moreover, kitchen equipment is indiscriminately crammed together, after extra appliances required for cooking breakfast items have had to be added.
While a small group of respondents have declared the change had progressed smoothly and has boosted customer base, others have highlighted the poor coordination from headquarters, qualifying it as “erratic, distorted and disorganized”.
Another issue that has been reported was the fact that average ticket costs have been reduced, since clients have turned from the usual menu to the lower-priced breakfast.
Lastly, it appears that the measure has so far failed to generate its intended new traffic, and the incredible profit that had been anticipated has yet to come, as costs have been skyrocketing.
On the other hand, however, McDonald’s representatives insist that the All Day Breakfast is actually a success, and that reviews from customers across 3,100 franchises have been overwhelmingly positive. In addition, they point out that the company’s brand score, as reported by YouGov BrandIndex, is at its highest value of the last two years.
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