McDonald’s May Be About to Supersize its All-Day Breakfast Menu

Provided by The Street

McDonald’s successful all-day breakfast menu may be about to become supersized.

McDonald’s is currently testing an expanded all-day breakfast menu at 72 restaurants in the greater Tulsa area, a McDonald’s spokeswoman toldTheStreet. The new menu called “All Day Breakfast: Bigger Menu” features McGriddles, McMuffins, biscuits, pancakes and other breakfast items.

In addition, 84 restaurants in and around Greensboro, Winston-Salem, and High Point, North Carolina will also soon start testing the expanded breakfast menu.

When McDonald’s originally launched all-day breakfast back in October, it only consisted of Egg McMuffins and pancakes as the fast food giant sought to ease franchisees into handling the new menu.McDonald’s CFO Kevin Ozan said at an investor conference on Wednesday that some items would have to be pulled from the menu to accommodate more all-day breakfast items. But the McDonald’s spokesman did not disclose what items, if any, have been pulled from the menu in its test markets.

“We’re still in a testing phase, gathering feedback from the restaurants,” said the spokeswoman.

So far, the all-day breakfast platform has energized McDonald’s once sagging sales. The Golden Arches reported that fourth-quarter same-store sales in the U.S. surged 5.7%, the second consecutive quarterly increase. It was the best performance by McDonald’s since it reported an 8.9% same-store sales gain in the U.S. in the first quarter of 2012.

The expansion of the breakfast menu to include more items, potentially nationwide this year, may add a further jolt to sales.

“People are re-trying McDonald’s, and it’s adding a layer of sales to some meals,” Ozan said at the investor presentation. Ozan pointed out that people are adding Egg McMuffins to their lunch orders, which is boosting the average check value. Moreover, the availability of breakfast around the clock has led to people trading up from cheaper fare on the menu, according to Ozan.

Written by Brian Sozzi of The Street

(Source: The Street)

McDonald’s Ramps Up Marketing of All-Day Breakfast

After posting its strongest quarter in nearly four years following the launch of all-day breakfast, McDonald’s has decided to focus its marketing might in the near term on promoting Egg McMuffins, hotcakes and other breakfast items in hopes of building a winning streak.

The company tells USA TODAY it has bought a 30-

After posting its strongest quarter in nearly four years following the launch of all-day breakfast, McDonald’s has decided to focus its marketing might in the near term on promoting Egg McMuffins, hotcakes and other breakfast items in hopes of building a winning streak.

The company tells USA TODAY it has bought a 30-second spot just before kickoff of Sunday’s Super Bowl to air a new advertisement called “Good Morning,” promoting the all-day breakfast menu.

The ad, which plays off the  popular children’s book Good Night Moon, shows young women laughing over breakfast after a night at the bars, a pregnant woman eating hotcakes in the evening as her partner puzzles over assembling a crib, and a young couple sharing a yogurt parfait on the roof of an iconic Los Angeles hotel before sunrise.

Deborah Wahl, the company’s chief marketing officer, points to demographics that show that all-day breakfast reflects a reality that traditional breakfast hours are increasingly out of sync with a wide swath of American workers.  About 15 million Americans work full time on an evening shift, night shift, rotating shifts or other employer arranged irregular schedules, according to the Bureau of Labor Statistics.

“From customers overall, there’s an increasing trend toward flexibility in terms of their schedule and what they want to eat and when they want to eat breakfast,” Wahl said in an interview. “We’re seeing that trend grow especially with a younger audience.”

McDonald’s says they will pay homage, while promoting their all-day breakfast, to those odd hour workers by delivering free breakfast on Friday to some 2,100 television meteorologists and weather reporters — careers that come with unusual work and eating schedules.

The company also plans a push of the breakfast anytime concept by giving away breakfast items from a food truck they call “McRig” this month to after-party revelers at the GRAMMY awards in Los Angeles and the Daytona 500.

The company also began testing the sale of McGriddles — a breakfast sandwich that features eggs, cheese and meat served between two sweetened pancakes — beyond traditional breakfast hours in the Tulsa market earlier this week.

McDonald’s had kept the popular item off the all-day breakfast menu when it was launched in October because of concerns that operators would not have enough grill space to cook breakfast and lunch items if the McGriddle was included. The test underscores that the company is looking to see how far it can push all-day breakfast and each restaurant’s operational capabilities.

CEO Steve Easterbrook counted the launch of all-day breakfast as one of several factors that increased sales by 5.7% at stores open at least a year for the quarter that ended on Dec. 31. Mild weather in much of the country, price increases and a renewed focus on efficiency — such as speeding up drive-thru times — was also credited with helping improve sales.

But some analysts say it may be too early to properly judge the long-term impact all-day breakfast will have on turnaround efforts at the nation’s biggest fast food chain, which broke out of a seven quarter losing streak at U.S. stores in October.

McDonald’s says that all-day breakfast has provided boosts to sale late in the afternoon and during dinner. But the most significant lift to sales at restaurants comes between 11 a.m. and 12 p.m., which may suggest that the breakfast push might be gaining traction with late risers but not necessarily changing customer behavior.

Still, McDonald’s executives in Oak Brook, Ill. express confidence that they have a winner with the launch of a limited breakfast menu throughout store hours. Restaurant operators, however, have offered mixed response to all-day breakfast, according to a survey conducted last month by Mark Kalinowski, an industry analyst for Nomura.

Some operators told Kalinowski that all-day breakfast has raised McDonald’s profile and brought back customers who had become tired of the Golden Arches. But some franchisees also complained in the survey that the breakfast push has put stress on workers and led to slower service at restaurants.

“Killing service and causing chaos in the kitchens during the non-breakfast times,” one franchisee said. “It has also caused management turnover, and crew turnover out of frustration. Employee morale is down because of it.”

Easterbrook, who was tapped last year to lead the company, has vowed to simplify McDonald’s menu.

One frustration for franchisees is that the push for all-day breakfast, which has added complexity to restaurant operations, hasn’t been coordinated with commensurate cuts to the menu, said Richard Adams, a former McDonald’s franchisee and founder of the Franchise Equity Group.

Adams suggested that the company cut the menu by 20% in some markets.

“The original concept of McDonald’s was a very limited menu and very fast service,” Adams noted. “Over the last 20 years, McDonald’s decided it had to be all things to all people and the menu has just grown and grown and grown.”

Written by Aamer Madhani of USA Today

(Source: USA Today)

 

McDonald’s Tests Expanded All-Day Breakfast with McGriddle

 
AP Photo/Candice Choi

Basking in the fanfare over its all-day breakfast menu, McDonald’s is pushing its operational limits by testing the addition of another morning favorite to the lineup: the McGriddle.

The world’s biggest burger chain plans to start offering an expanded all-day breakfast menu that includes McGriddle sandwiches in 72 restaurants in Tulsa, Okla., starting Feb. 1. The test comes after customers complained about the absence of the sandwich when McDonald’s launched a limited all-day breakfast menu in October.

McDonald’s expects the test to last for two to three months before deciding how to proceed.

The test come as McDonald’s rides high from its biggest quarterly U.S. salesjump in nearly four years. The Oak Brook, Illinois company said this week that sales rose 5.7 percent in the last three months of year, boosted by all-day breakfast menu and unseasonably warm weather.

Now McDonald’s restaurants in Tulsa will try adding McGriddle sandwiches, as well as breakfast sandwiches made with biscuits. Currently, restaurants offer breakfast sandwiches made with either biscuits or English muffins, depending on regional preferences. About 80 percent offer “McMuffin” sandwiches, with some areas in the south offering biscuits.

The addition of McGriddles and biscuits in the afternoon could prove to be too much of a strain, especially at a time when McDonald’s has said it’s trying to simplify operations to improve order accuracy and speed.

The syrupy pancake buns for McGriddles and biscuits would need to be warmed up in ovens, which are also used to heat up apple pies, cookies and mozzarella sticks during lunch hours, said LeAnn Richards, a McDonald’s franchisee who led a task force on all-day breakfast. McGriddles and biscuit sandwiches are also made with a frozen egg patty, instead of the cracked egg used in McMuffins.

That means franchisees — who already had to buy new equipment to offer all-day breakfast — would need to further juggle grill and oven space for an expanded menu.

“It’s too premature to talk about next steps,” said Deborah Wahl, chief marketing officer for McDonald’s U.S.

McDonald’s says franchisees in Kansas City also started offering a Sausage McGriddle last month in response to demand. But those restaurants aren’t offering the sandwich with eggs, or biscuit sandwiches.

Despite McDonald’s recent sales jump, it’s still not clear exactly how all-day breakfast is benefiting the chain and whether the effects will last. The company did not say how much of the increase was from an uptick in customer visits, versus factors likes price hikes or people adding extras onto their orders.

Either way, McDonald’s turnaround push is far from over. The company’s U.S. customer visits fell 3 percent last year, following a 4.1 percent drop in 2014.

Written by Candice Choi of Associated Press

(Source: MSN)

The Catch About McDonald’s All-Day Breakfast

© Provided by CNBC
© Provided by CNBC

For weeks now, McDonald’s  (MCD) has plugged all-day breakfast, one of its biggest initiatives in years. Now that it’s finally here though, customers are realizing there is a catch.

The extended breakfast menu that launched Tuesday offers a limited selection and varies by location. Just half of McDonald’s 24 total breakfast items are available as part of the full-day menu. Several items like the Egg White Delight McMuffin or the McGriddles did not make the cut.

For example, one Manhattan location is selling just nine breakfast food items, including McMuffins, as part of its limited menu.

On social media, some Twitter users expressed disappointment about the limited menu.

Some users discussed McDonald's breakfast menu on Twitter Tuesday.

© Twitter via CNBC 

Only about 20 percent of markets, which are mostly in the Southeast, will serve biscuits all day while about 80 percent of markets will serve McMuffins.

This means if you’re a biscuit lover on the West Coast with a hankering for a bacon egg and cheese biscuit for dinner, you’re likely out of luck.

Hash browns also won’t be available everywhere though, spokeswoman Lisa McComb notes the “vast majority” or about 90 percent will have them.

Written by Katie Little of CNBC

(Source: CNBC)