You might have thought that when McDonald's announced that it would offer all-day breakfast at its restaurants around the U.S. that it might set off a battle for the market with its fast food rivals. Instead, the move may be the reason behind an uprising, of sorts, as franchisees claim it is complicating kitchen operations, slowing service, trading profits down and, ultimately, costing them customers.
According to a survey of 29 franchisees operating 226 McDonald's in the U.S., by Mark Kalinowski, an analyst with Nomura, the move to all-day breakfast on Oct. 6 has been a source of friction between McDonald's and its franchisees.
Survey respondents complained about more complicated kitchen operations, particularly in smaller locations, resulting in reduced service levels.
One survey respondent, as reported by Business Insider and the New York Post, warned of unintended consequences. "All-day breakfast is a non-starter. We are trading customers down from regular menu to lower-priced breakfast items. Not generating new traffic."
Source: McDonald’s Facebook page
Not all of the respondents to the survey were negative, even though they had issues with McDonald's. One, according to Nation's Restaurant News, who argued the move to nationwide breakfast should have been pushed back to January said, "We would be doing a better job if we had not rushed into it. Not going to be a big deal long term."
For its part, McDonald's management maintains the decision to move to all-day breakfast was correct.
"The successful launch of All Day Breakfast proves that when we listen to and respond to our customers and align around a great execution plan, we will grow our business and take share," wrote Mike Andres, president of McDonald's U.S. business, in an e-mail to franchisees obtained by Bloomberg. The e-mail, according to the report, did not offer specifics on the results of the rollout to date.
- McDonald's all-day breakfast has been a disaster - New York Post
- McDonald's franchisees say all-day breakfast is a nightmare - Business Insider
- Survey: McDonald's franchisees mixed on all-day breakfast - Nation's Restaurant News
- McDonald's, Happy With Breakfast Rollout, Says Value Plan Next - Bloomberg