LOS ANGELES (Reuters) - McDonald’s Corp’s U.S. franchisees have voted to begin offering all-day breakfast on Oct. 6, a widely expected move that the company and investors hope will help reverse slumping sales and traffic at the world’s biggest fast-food chain.
Many U.S. consumers like to eat breakfast foods at all hours of the day. McDonald’s is the top choice for those so-called “Breakfastarians,” according to a recent survey from YouGov BrandIndex, a brand perception research service.
McDonald’s all-day breakfast menu will include hotcakes, yogurt parfaits, oatmeal, hash browns, sausage burritos and either McMuffin sandwiches or biscuit sandwiches, according to the company, which did not say how much the new program is expected to boost results.
Richard Adams, a former McDonald’s franchisee turned consultant, said McDonald’s has told franchisees that all-day breakfast will lure 200 customers a week per restaurant.
McDonald’s is expected to back its breakfast expansion with a significant advertising campaign, and Adams predicted that the company will get an initial sales boost from expanded breakfast service.
All-day sales of McDonald’s iconic McMuffin sandwiches at the chain’s more than 14,000 U.S. restaurants could increase sales by as much as 2.5 percent a year, according to an internal company presentation obtained by Bloomberg News.
“Will this be a long term fix for McDonald’s USA? We won’t know until well into 2016,” Adams said.
Some franchisees worry that extended breakfast service could complicate operations and slow service at a time when company executives have vowed to simplify and streamline the chain’s menu.
To that end, McDonald’s said that regional operators can decide whether to cut certain menu items based on local customer preferences.
Reporting by Lisa Baertlein in Los Angeles; Editing by Tom Brown, Steve Orlofsky and Bernard Orr