September 1, 2015

Shocking - The Breakfast Test Was a Success!

McDonald’s Set to Offer All-Day Breakfast - WSJ
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3 comments:

Anonymous said...

If one defines success as forcing it down our throats, weak test cases and a ton of unanswered questions then I guess it was.
(And no I didn't vote for it either.)

Anonymous said...

I hope everything they are saying is correct. However, I don't understand the numbers. We are supposed to get a 2.4% lift on top line from this, offering it to only 30% of our customers. How do you get 2.4% of gross sales from less than half of your customers? If a store is doing $2,000,000.00 and 2.4% equals $48,000.00 that is $4,000.00 per month or approx. $133.33 dollars per day increase from the front counter. At a $6.00 average check that is 22 more transactions per day every day. Subtract the non-controllable cost percentage plus food cost, plus additional equipment and POP, and you had better not waste anything. I don't understand it and I hope my numbers are wrong.

Richard Adams said...

"offering it to only 30% of our customers" - You might be confusing the initiatives. The 30% applies to CYT. But I won't argue with the rest of your numbers and understand management is telling Operators breakfast all day will add 200 tcs a week, that's not far from your 22x7 = 154.

But a $48,000 increase X 14,300 stores? The shareholders will be very happy with that.