Will customers wait for new Quarter Pounder?
The tradeoff between time and taste looms large for McDonald's Corp as it works to win back business lost to rivals.
The introduction of cooked-to-order, quarter-pound burgers made with fresh beef is part of McDonald's attempt to improve food quality. Announced in March, the new sandwiches are already in selected test markets and are expected to be served in all U.S. stores by mid-2018.
But the success of the initiative may well hinge on satisfying important customers like Moore: speed-minded drive-through patrons who account for 70 percent of the firm's U.S. revenue.
An on-demand Quarter Pounder takes about a minute longer to land in a customer's hands than does the original sandwich, according to restaurant managers and analysts, even though fresh beef fries up faster than frozen patties. That's because grilling begins only after a patron orders. Traditional Quarter Pounders were often cooked up in batches ahead of time.
Every second counts in the fast-food business. McDonald's drive-through speeds already lag those of some major competitors, according to one widely watched survey. McDonald's does not share such data, but company representatives told Reuters earlier this year that service times have slowed.
Still, company executives are bullish on prospects for the popular Quarter Pounder, which accounts for about one-fourth of McDonald's U.S. burger sales. At an investor conference last month, Chief Executive Steve Easterbrook said the changeover has created fewer complications than expected and that restaurant operators are on board.
Some industry veterans, however, are skeptical. Richard Adams, a former Southern California McDonald's franchisee-turned-consultant, says convenience is paramount for the chain's patrons, who may go elsewhere if speed deteriorates.
"Any time the cooking process begins after the customer orders, the service time will be slower," Adams said.
The fresh-beef initiative comes as pressure builds on McDonald's kitchens.
Adams says restaurant crews already are juggling trickier menu items thanks to the recent national launch of McDonald's new "Signature Crafted" sandwich line, which allows customers to pick their own meat, buns and toppings. "Signature Crafted" quarter-pound burgers also will use fresh beef as it becomes available nationwide.
McDonald's cooks could be further strained by the chain's embrace of self-service kiosks and mobile ordering. The technology shaves ordering times, but can create new bottlenecks by swamping kitchens at peak hours, as companies such as Starbucks Corp have learned.
FRESH VS. FAST
The revamped Quarter Pounder is the latest move by Easterbrook to modernize the 60-year-old chain and reverse four straight years of traffic declines.
It's also a direct shot at Wendy's Co, Whataburger and In-N-Out. Those fresh-burger chains are among the fast-food rivals that McDonald's says have siphoned 500 million U.S. transactions from its stores since 2012.
Easterbrook's introduction of all-day breakfast in October 2015 was a big hit and has helped lift sales. The company's stock price is up more than 25 percent so far this year.
Analysts expect the fresh-beef push, along with moves to ditch artificial ingredients in popular items such as chicken nuggets, to bolster sales by addressing consumer demand for simpler, "cleaner" and fresher ingredients.
The Quarter Pounder makeover has won early support from analysts and McDonald's franchisees in the heart of cattle country, where the product has been tested for almost two years in about 400 stores in Oklahoma and Texas.
Trouble is, the "speed of McDonald's" isn't as fast as that of many of its competitors.
The average service time at a McDonald's drive-through last year was 208.2 seconds, according to a study published by QSR magazine, an industry publication, using data from SeeLevel HX, an Atlanta-based business intelligence firm. That's well behind industry leader Wendy's at 169.1 seconds, according to the survey. Burger King, Dunkin' Donuts and KFC all beat McDonald's too.
Nampa/Reuters
But the success of the initiative may well hinge on satisfying important customers like Moore: speed-minded drive-through patrons who account for 70 percent of the firm's U.S. revenue.
An on-demand Quarter Pounder takes about a minute longer to land in a customer's hands than does the original sandwich, according to restaurant managers and analysts, even though fresh beef fries up faster than frozen patties. That's because grilling begins only after a patron orders. Traditional Quarter Pounders were often cooked up in batches ahead of time.
Every second counts in the fast-food business. McDonald's drive-through speeds already lag those of some major competitors, according to one widely watched survey. McDonald's does not share such data, but company representatives told Reuters earlier this year that service times have slowed.
Still, company executives are bullish on prospects for the popular Quarter Pounder, which accounts for about one-fourth of McDonald's U.S. burger sales. At an investor conference last month, Chief Executive Steve Easterbrook said the changeover has created fewer complications than expected and that restaurant operators are on board.
Some industry veterans, however, are skeptical. Richard Adams, a former Southern California McDonald's franchisee-turned-consultant, says convenience is paramount for the chain's patrons, who may go elsewhere if speed deteriorates.
"Any time the cooking process begins after the customer orders, the service time will be slower," Adams said.
The fresh-beef initiative comes as pressure builds on McDonald's kitchens.
Adams says restaurant crews already are juggling trickier menu items thanks to the recent national launch of McDonald's new "Signature Crafted" sandwich line, which allows customers to pick their own meat, buns and toppings. "Signature Crafted" quarter-pound burgers also will use fresh beef as it becomes available nationwide.
McDonald's cooks could be further strained by the chain's embrace of self-service kiosks and mobile ordering. The technology shaves ordering times, but can create new bottlenecks by swamping kitchens at peak hours, as companies such as Starbucks Corp have learned.
FRESH VS. FAST
The revamped Quarter Pounder is the latest move by Easterbrook to modernize the 60-year-old chain and reverse four straight years of traffic declines.
It's also a direct shot at Wendy's Co, Whataburger and In-N-Out. Those fresh-burger chains are among the fast-food rivals that McDonald's says have siphoned 500 million U.S. transactions from its stores since 2012.
Easterbrook's introduction of all-day breakfast in October 2015 was a big hit and has helped lift sales. The company's stock price is up more than 25 percent so far this year.
Analysts expect the fresh-beef push, along with moves to ditch artificial ingredients in popular items such as chicken nuggets, to bolster sales by addressing consumer demand for simpler, "cleaner" and fresher ingredients.
The Quarter Pounder makeover has won early support from analysts and McDonald's franchisees in the heart of cattle country, where the product has been tested for almost two years in about 400 stores in Oklahoma and Texas.
Trouble is, the "speed of McDonald's" isn't as fast as that of many of its competitors.
The average service time at a McDonald's drive-through last year was 208.2 seconds, according to a study published by QSR magazine, an industry publication, using data from SeeLevel HX, an Atlanta-based business intelligence firm. That's well behind industry leader Wendy's at 169.1 seconds, according to the survey. Burger King, Dunkin' Donuts and KFC all beat McDonald's too.
Nampa/Reuters
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