recentpopularlog in

jerryking : qsr   10

US fast-food chains struggle as poorer consumers tighten belts
November 11, 2018 | Financial Times | by Alistair Gray in New York.

The robust US economy is failing to boost the fast-food industry as chains grapple with a saturation of retail outlets, consumer demands for deep discounts and declining footfall.

Numbers visiting US fast-food outlets in September dropped 2.6 per cent from a year ago, according to restaurant industry data provider MillerPulse, a steeper decline than the 0.8 per cent year-on-year drop recorded the previous month.

Industry executives and consultants cited a series of factors, including consumer demand for healthier alternatives to burgers and pizzas and lower construction activity, which means fewer building workers are picking up fast food on lunch breaks.

The tough landscape has taken its toll on several operators. Last week, the New England-based owner of Papa Gino’s and D’Angelo Grilled Sandwiches filed for bankruptcy protection.
bankruptcies  fast-food  low-income  QSR  restaurants  store_closings  oversaturation 
november 2018 by jerryking
Why McDonald’s All-Day Breakfast Was Years in the Making - Eater
by Tove Danovich Sep 25, 2015,

Most customers pay little attention to how the McGriddle is made, so to speak, but setting up a program like the all-day breakfast takes more than just marketing. In addition to years of talking about putting this plan into action, stores across the country spent months testing all-day breakfast and straightening out any flaws. Even once a plan was implemented, it was up to more than 3,000 owner-operators spread throughout the nation to upgrade and reorganize their kitchens for the menu change.
all-day  breakfasts  McDonald's  fast-food  QSR  operations  franchising 
january 2017 by jerryking
McDonald’s Table Service: Fast Food Redefined - WSJ
By JULIE JARGON
Nov. 18, 2016

More McDonald’s Corp. customers across the U.S. will be able to choose table service inside restaurants, in an attempt to provide something beyond what a traditional fast-food chain offers.

It is part of an effort central to revive the burger giant’s sales, which have flagged in recent quarters. Franchisees and analysts have been wondering what else McDonald’s would do to drive interest in a brand that has been struggling to re-establish its relevancy in a market where consumers have more choices than ever to get food, including burgers.

The company that derives nearly 70% of its sales from the drive-through is hoping changes to the restaurants themselves will help lift sales, according to McDonald’s USA President Chris Kempczinski.....If the restaurants aren’t able to keep their stores clean and offer friendly service—two challenges that have plagued the company—having table service isn’t going to enhance the experience, said Darren Tristano, vice president at restaurant consulting firm Technomic Inc.

In addition to table service, the company is also installing free-standing kiosks inside the restaurants, which have proven successful in overseas markets including the U.K., France and Australia, according to the company, which said people tend to order more food when they don’t feel pressured to order at the counter. Customers can pay for their food at the kiosk and indicate whether they want table service.
McDonald's  fast-food  QSR  self-service  drive-throughs  kiosks  restaurants 
january 2017 by jerryking
Why McDonald's Shouldn't Rush Its Digital Platform -- The Motley Fool
Asit Sharma (TMFfinosus) Mar 23, 2016

McDonald's has been late to join quick-service operators in offering a mobile app. Consumers in the U.S. are developing an expectation that they can order, receive affinity (loyalty) points, and interact socially with a brand simultaneously on a mobile device, and McDonald's risks losing millennial customers if it doesn't gradually build its own system.... some risk in relation to a mobile-based affinity program. McDonald's already uses extensive national and regional promotions, through its evolving value menu and limited-time offers. Affinity programs, if not properly implemented, can become simply another discounting mechanism, and McDonald's doesn't need yet another window for passing on discounts. The point of a well-run affinity program is to mine data collected on customers to improve sales or profits, or both. ...an interesting problem that's delaying the introduction of an "order ahead and pay" component to the McDonald's app. Roughly two-thirds of McDonald's U.S. business is transacted at the drive-through. Theoretically, if a customer orders ahead on McDonald's mobile app to pick up food at the drive-through, it's self-defeating for that customer to wait behind other cars in the line.

The company is experimenting with solutions such as designated parking for drive-through customers who order ahead. In this scenario, a customer would wait in his or her car while an employee hand-delivers the order. This is functional, but you can see the implications for McDonald's throughput at peak hours, as employees leave their posts to wade out and make parking-lot deliveries.

McDonald's executives would be loath to admit it, but I'll wager that quandaries like this make them wonder if they really need to inject a digital platform into an operation that's been optimally refined over the course of decades.
McDonald's  digital_strategies  platforms  fast-food  operations  mobile_applications  QSR  drive-throughs  restaurants  millennials  self-defeating 
january 2017 by jerryking
Changing The Recipe Of A Signature Dish Can Be A Risk
March 2010 | QSR magazine | | By Daniel P. Smith.

remaking a signature dish is risky business. Who can forget the consumer backlash Coca-Cola encountered when it altered its recipe in 1985, reverting to its original formula after less than three months on the market with New Coke?

“Changing a signature recipe is a dangerous proposition because there’s risk involved,” says Mark Smith, a research and equity analyst for investment firm Feltl and Company who focuses specifically on restaurants. “Will franchisees be on board with the change? Will this change alienate heavy users?”
fast-food  innovation  chefs  menus  recipes  Domino's  foodservice  risks  QSR 
april 2013 by jerryking

Copy this bookmark:





to read