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The strategy behind McDonald's most recent breakfast



Donut stickers are McDonald's latest breakfast. The fried dough sticks come six or a dozen in a pack and serve warm with cinnamon and sugar. And McDonald's really wants to really buy coffee to go with them. Although breakfast is served all day at McDonald 's, the Donut stick will only be available at breakfast

Breakfast is the ultimate limit of the restaurant business: more people prepare breakfast at home than any other food, the morning remains the only breakfast. fast food market, according to NPD. Snacks in fast food restaurants grew 1% last year, but total sales were equal

"Breakfast impulse is a consumer trend," said David Portaletin, NPD's food industry analyst. "People give a larger share of stomach to breakfast in fast-delivery restaurants."

That's why breakfast was the main topic for a conversation over the last few quarterly conference talks between McDonald's analysts and the leadership of McDonald's. Chief Executive Steve Istbertbrook continues to sound optimistic about breakfast, recognizing that the company is lagging behind its high goals.

"We continue to lose traffic at a higher level than we want at breakfast," Isterbrook said on January 30th. Wall Street Analysts. Isterbrook noted that McDonald's had successfully convinced his clients to spend more on breakfast by persuading them to buy more or more expensive items. But the company is not happy with raising existing customers.

"We really want customers to count back and more often," Isterbrook said.

To solve the problem, McDonald says he is considering a number of initiatives, some of which are logistic and others that focus on the menu.

Isterbrook said McDonald's is analyzing whether he should increase his staff in the morning when the restaurants are busy. He plans to add more digital kiosks to stores and will make the app more personalized to highlight menu items that are more appealing to the individual tastes of customers. Menu innovation is another part of the strategy, both nationally and locally. McDonald's will encourage local franchises to offer unique snack products and menu prices to compete better with competitors in their respective store areas. But McDonald's will continue to test new snacks in all of his stores.

These new creations are successful. Isterbrook said the triple-snack sandwich introduced in November is one of the biggest players in sales growth in the last quarter.
McDonald's introduced bagels and "fresh smoked eggs" to Canada. The company said it would continue to upgrade its McCafé line, McDonald's coffee brand, which competes directly with Starbucks [1
9599007] and Dunkin ( DNKN ) .

During the conversation with the analysts two weeks ago, Isterbrook said he believed there were many more legs in McCafe, especially coffee sales. In some new restaurants, McDonald's experimented with McCafe brand Muffin Toppers and Coffee Cakes, and the company said he would continue to develop new beverages and bakery products for McCafe.

McDonald's tested the sticks at several restaurants in Illinois at the beginning of last year. She reworked the recipe, tested several different forms, and tested them again in October. They will debut at the national level on February 20, and McDonald's said they will be available for a limited time.

Dunkin unveiled a similar Donut Fries in July, which comes 5 in a $ 2 package. McDonald's will sell six for Donut Sticks for $ 1.69 or $ 2.59 for coffee, a company spokesman said.

As Taco Bell, Dunkin has doubled to breakfast in recent years, adding a few new snacks for breakfast.Taco Bell introduced breakfast in 2014. The last quarter of Taco Bell grew sales in restaurants open for at least a year with 9% , who Yum Brands ( YUM ) The owner of the company, part of his success with the breakfast menu

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