NEW YORK – McDonald’s Corp. is testing a full breakfast menu in some southern US markets. Currently, franchisees choose between offering McMuffin or biscuit sandwiches to customers selecting from the all-day breakfast menu.
|Kevin, CFO of McDonald's|
“We are testing right now in a couple markets whether to have the full breakfast menu all day,” said Kevin Ozan, CFO, during a presentation March 16 at the Bank of America Merrill Lynch Consumer & Retail Tech Conference. “Now what goes along with that is reducing complexity then in other areas (because) we can't just add that complexity of the additional items all day.”
Ozan said the initial roll-out of all-day breakfast this past fall involved the removal of seven to 10 menu items, depending on region and store menu mix.
“And so as part of that we are looking at what needs to come off the menu in order to be able to do that from an operational complexity standpoint.”
Ozan called the initial all-day breakfast rollout an “accelerator of momentum” and identified the initiative as a key driver of the company’s improved financial performance. The expanded menu offering has proven effective in attracting new customers and prompting regular customers to trade up to a mid-tier price point.
“In (the) launch period we saw about 15 percent of our food orders outside of the breakfast day part included an all-day breakfast item,” he said. “That percentage has come down a little bit since then but still maintaining at a reasonably high percentage, and we think all-day breakfast still has a lot of runway.”