I for one am a huge proponent of the new breakfast all day option at selected McDonalds. This means that instead of breakfast getting cut off around the 10:30 am mark like it always has been breakfast will now be served all day. But is this economically feasible for the largest fast food chain in the world?
Analysts are considering this a risky move. By looking at the egg mcmuffin we get a better understanding of what the actual "costs" of having breakfast all day will mean for the food chain. The actual sandwich costs 85 cents to make and sells for $2.99 resulting in a $2.14 profit while a bigmack yields a profit of $2.94 which is much more profitable for the franchisee. Some expert analysts say that breakfast sandwiches could canabalize burger sales resulting in company wide drops in profit.
Although this new move to breakfast all day options could result in customer satisfaction it could also mean a drop in profits for a company looking for a turn around.
http://money.cnn.com/video/news/2015/04/22/economics-of-an-egg-mcmuffin.cnnmoney/index.html?iid=HP_LN
5 comments:
I think this is a risky and unnecessary move for McDonald's. I understand the company trying to separate themselves from other fast food restaurants. However, I wonder is their a need for breakfast being sold all day?
I also think this is a risky move for McDonald's. While people do enjoy their breakfast, I feel as though extending the hours will decrease demand and cause McDonald's to lose money. Recently, Burger King also decided to bring back their chicken fries permanently. I feel as though this, like the McDonald breakfast situation will decrease demand and cause the two companies to lose money.
I agree, I don't really see this as a necessary move for McDonalds. It could end up costing them more money in the long run since not too many consumers want their breakfast late in the day. I don't know if that's worth it.
I would have to disagree I think it comes down to the consumer and their taste preferences. I think when you go to mcdonalds you will order a burger cause your hungry for a burger and vice versa. I also think that they already have the Mcdouble and the McChicken each selling for only a dollar which undercuts them both. This has already been in place for awhile
I would have to agree with Abby. I think that by sticking to a certain time period for serving breakfast increases a demand for a McDonald's breakfast. If they keep it strict then customers are going to try harder to get to the business in order to satisfy a want. I also think that McDonald's breakfast is not something you eat every day, its almost like a luxury so you kind of plan if you want to get breakfast. Sometimes it is spur of the moment, but most of the time not. If you really want something you will work to make it happen.
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