The modernization effort, remodels, self-serve kiosks, higher quality foods and door-step delivery, appears to be working. Widdicombe said the chain has been generous in helping operators with the capital investment, which some analysts peg at costing anywhere from $1.5 million to $2 million. McDonald’s has repeatedly declined to reveal the cost of store remodels. More than 150 McDonald’s locations also have installed touch-screen kiosks for self-serve ordering. Spruced-up local restaurants now offer table service, upscale burgers, modern furniture and fixtures, and delivery through UberEats. The most recent remodel is part of the chain’s latest effort to modernize restaurants to cater to a new generation of diners seeking sophistication, as well as speed and value. The family’s flagship restaurant, on Harbor Boulevard near Disneyland, has been demolished and rebuilt twice. Over the years, Widdicombe’s family has become adept at adapting in the hyper-competitive fast food industry. “It eliminated the veto vote,” Widdicombe said, whose parents opened Orange County’s first McDonald’s in 1957. McDonald’s said it is back by popular demand, and now includes three flavor options: French Vanilla, caramel or hazelnut.) (Note: Cappuccinos were part of the original McCafé menu, but the foamy drink disappeared in recent years. By adding three more espresso drinks, McDonald’s believes they can sway more customers to give them a try. In the coffee category, McDonald’s said time-pressed customers have expressed a need for more variety in the McCafe menu. In 2015, restaurants fulfilled a longstanding customer request to serve breakfast all day - a move that worked to reinvigorate sluggish sales. Listening to customers has been a key part of the McDonald’s turnaround plan under Chief Executive Officer Steve Easterbrook. Kempczinski said elevating the McCafé brand is “a central part of our growth strategy and we can’t wait to share what’s next.” McCafe promotions have already been a threat to Dunkin’ Donuts, Chief Executive Nigel Travis said earlier this year: “It’s becoming a little bit more crowded, a bit more aggressive,” according to a CNBC report. “With the oversupply of restaurants and cafes today, there is great pressure to constantly raise the bar on quality and keep your competitors on their toes.” “The time appears to be right for McDonald’s to close the gap on their rivals,” said Tristano, a food service analyst based in Chicago. Increasing quality is a natural next step because Dunkin’ Donuts and Starbucks are strong with quality and convenience. Restaurant industry analyst Darren Tristano said McCafe has been a solid performer in the breakfast and all-day beverage category because consumers find it a good value. “We understand how important the coffee culture is for consumers and we are committed to meeting that demand at the taste, convenience and value only McDonald’s can offer,” Chris Kempczinski, president of McDonald’s USA, said in a statement. McDonald’s, which also sells its McCafe-branded ground coffee in grocery stores, said they have not finalized the list of retailers where the bottled drinks will be sold. Ready-to-drink bottled frappes are expected to hit stores in early 2018. On Wednesday, McDonald’s also confirmed plans to expand McCafe in supermarkets. Restaurants also have been outfitted with higher quality espresso machines, which produce a creamier and thicker milk foam. On Wednesday, McDonald’s said 14,000 McDonald’s restaurants across the U.S., including 600 in Southern California, have launched three new espresso drinks to the coffee menu: cappuccino, Americano, and iced caramel macchiato. Now, nearly a decade later, McCafes have been refreshed to increase repeat visits from casual customers. It helped boost breakfast and afternoon sales at her restaurants. McCafes, which serve lattes, frappes, hot chocolate, shakes, iced caramel mochas and iced coffee, wound up being “terrific” for business. It was such a new product for us,” said Widdicombe, whose family operates five McDonald’s restaurants in Garden Grove. The in-house espresso bars were developed as a fast, less expensive alternative to rival coffee houses, including Seattle-giant Starbucks. In 2009, McDonald’s operator Patti Widdicombe was more than nervous when the chain dipped its toe into uncharted waters with the McCafe launch.
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