Wednesday 14 October 2015

All Day Breakfast Wont Save McDonald's



McDonald's needs to take aggressive moves to redeem itself.

McDonald's Corporation is in trouble all over again where the fast food giants same store sales fell significantly over the past 12 months which ended in June FY15. The company’s turmoil did not end here and they actually stopped reporting the sales figure altogether. A report was published by AP, since 1970 this is the first time in the history that a higher number of Golden Arches restaurants would shut down then open. This year was extremely tough for McDonald's where their embattled chief executive officer stepped down when the year began due to a series of mishaps and blunders. This encompassed the meat incident that took place in China, weak management with no proper structure to deal with strikes organized by employees, along with an misleading employment ruling with the Board of National Labor Relation that can disgruntle the business mechanism of McDonald's. The company at this point of time is facing a major havoc but the solution to their misery is an “All Day Breakfast” McDonald’s menu is now being improvised and the company has finally found a solution which they believe might change the game for them. As of today, the company has decided to serve breakfast all day long at 14,300 McDonald's outlets within the United States. The company started to test this venture in March as reported by the Wall Street Journal. In almost a time span of seven months, the fast food company has devised the necessary infrastructure to offer All Day Breakfast. So all those who wish to have hot cakes, sausages, burritos etc. need not worry about the 10:30 a.m breakfast cut-off time. However, items like Egg McMuffins will not be served at certain outlets. This idea was put forward by Steve Easterbrook who became the chief executive officer of the firm with an aim to bring the company out of its ailing stage and pace its way to redeem itself as the “modern progressive” hamburger company. The reason behind McDonald's downfall is simple, casual dine out places have increased substantially in a short span of time giving birth to competition. The company strategized and started to target the weightwatchers by including healthy items in its menu. The current state of McDonald's is extremely vulnerable that needs aggressive moves to counter the ailing state. An all day breakfast is a great tactic to attract breakfast item lovers but it is still not that aggressive to redeem their position. A lot more needs to be done at this point.

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