McDonald’s Innovates, Positions McCafe as Grocerant

Foodservice Solutions® Grocerant Guru® say’s welcome to the Grocerant niche.  McDonald’s success does leave clues.  McDonald’s sector leadership may be questioned from time to time, however it is never in doubt.  McDonald’s senior team understands that the consumers is dynamic not static and McDonalds is more dynamic today than ever.             (Photos by: Peter J. Thompson/National Post)

McDonald’s continued innovation leadership cannot be question. McDonald’s does more than just copy-cat product, packaging, and pricing. They did the most important thing a legacy restaurant brand can do they abandoned brand protectionism for global growth driving incremental top line sales and bottom line profits.   

After testing new versions or McCafe in Australia McDonald’s Canadian team is testing a new ‘standalone’ McCafe.   Versions of coffee-centric McCafe’s operated for years in overseas markets like Australia, the McCafes that opened this week in Toronto are the only ones in North America.

The new McCafes provide an additional platform for growth that current franchisees will welcome. Expanding grocerant niche product offering creates a competitive advantage for McDonald’s as they are increasingly encountering competition from the ilk of Wawa, Sheetz, Tim Hortons, and Starbucks.

Empowered with a new menu seeking new customers they offer vegetarian options including a grilled-cheese sandwich, a wrap of hummus, sweet potatoes and lentils. The morning selections unique to the store include a croissant baked on premise and a cream-cheese Danish made with real fruit. The croissant serves as the foundation for an apple and Brie sandwich. Fresh fruits are also available.

Many of the products are grocerant niche pre-made and offered as grab-and-go options instead of made to order. They are merchandised away from the counter, and consumers can grab the items and pay for them at a self-service checkout kiosk saving labor and driving up check averages. 

With a focus on building incremental customers, top line sales and bottom line profits the new McCafe’s are a sign that the retail foodservice sector is evolving according to Foodservice Solutions® Grocerant Guru®.  McDonald’s is one of the best companies at implementing innovation via the time tested formula of Build, Measure, Learn, and Repeat  which leads to groundbreaking innovation.

 

Like most grocerant outlets the McCafe unit footprint is about a quarter of the area for a McDonald’s, according to the management of McDonald’s Canada expanding the brands reach into areas they could not reach in the past.  Have you consider entering the Grocerant niche?  Maybe you should. 

Success does leave clues for grocerant niche clues it time to consider Foodservice Solutions® grocerant niche industry leaders since 1991. Contact: Steve@FoodserviceSolutions.us   Invite Foodservice Solutions® to complete a Grocerant Scorecard or a Grocerant Program Assessment.