Is McDonald’s Set Too Topple Pizza for Dinner?

How many of you have kids and are considering ordering Dinner from McDonald’s now that they are offering delivery at more than 2,000 stores in the US?  When your kids are asking What’s for dinner, would you elect to replace that dinner pizza with McDonald’s once a month, twice a month or once a week? McDonalds thinks so.

McDonald’s ability to take the time testing delivery around the world and developed systems, food, and service to understand the benefits, complications, and outcomes will prove a key driver of incremental success.

Delivery will drive continue unit level sales success. McDonald’s has with delivery created a platform that will drive top line sales, bottom line profits while garnering market share from other foodservice sectors all while edifying the McDonald’s brand with relevance according to Tacoma, WA based Foodservice Solutions® team which calls this system Build, Measure, Learn, and Repeat. 

When it comes to food delivery McDonald’s has taken its time in rolling out food delivery in the United States but that does not mean that they have done lots of food delivery.  In fact it has been widely reported that last year alone global food sales of food delivered by McDonald’s restaurants reached $ 1 Billion and that’s before they ever delivered one meal in the US. 

Southeast Asia has been the primary testing grounds for McDonald’s delivery including the following countries:

1.       Hong Kong

2.       Signapore

3.       Philippines

4.       Australia

McDonalds is dynamic not static and building sales in new non-traditional avenues of distribution elevates consumer relevance with it target audience specifically younger customers, late-night diners that want their food delivered.

McDonald’s CEO Steve Easterbrook stated “We see significant potential” in delivery….We’re encouraged by the early results.” McDonald’s noted that delivery orders tend to come in the evening or late night — so far, 60 percent of delivery orders come during those periods.

Easterbrook believes that the ability to grow dayparts with underutilized capacity via delivery is a perfect fit for the company at this time.  The team at Foodservice Solutions® believes that there will be a three year ramp-up with delivery at McDonald’s and at the end of three years McDonald’s will have garnered a larger share of stomach. Did you hear that Pizza Hut, Papa John’s and Domino’s?

Our Grocerant Guru® believes catering office breakfast and lunch events will drive market share gains, putting pressure on Starbucks, while dinner will garner share from the Pizza sector.  McDonald’s recorded over $ 1 Billion in delivery worldwide in 2016.  At McDonald’s delivery is an integrated strategy not a one off tactic according to our Grocerant Guru® Steven Johnson.

The Grocerant niche and fresh food sales today is all about time as our Grocerant Guru® reported back in the day. Simply put; today time is the new currency that is the most important in consumer buying decisions. McDonald’s has 14,000 locations in the U.S., and 75 percent of the population lives within three miles of a McDonald’s. 

McDonald’s CFO Kevin Ozan said at a recent Bernstein conference “I say this from experience as one who orders delivery a lot, one of the most important things in speed”. He said most people could get their food less than 30 minutes after order from McDonald’s. “You never get that. It’s usually an hour, whether you’re ordering pizza or Chinese food or anything else.” We might say locations, locations, locations!

 Remember Build, Measure, Learn, and Repeat well McDonald’s did learn with over $1 Billion in Delivery sales in 2016 and over the years they have learned a lot about food quality, service, food sales and delivery.  Is your brand looking beyond traditional points of distribution? Is your brand prepared to target another sector of foodservice?  Is your brand building customer counts or capitulating customers?

 Leaders lead and McDonalds understands that the customer is dynamic not static and the customer is on the move.  Foodservice Solutions® Grocerant Guru® Steven Johnson stated “McDonalds stop practicing Brand Protectionism long ago and that is one major key reason they have exceed globally and will continue.  McDonalds understands that you cannot do what you have always done and stay relevant.”

 Are you trapped doing what you have always done and doing it the same way?  Interested in learning how www.FoodserviceSolutions.us can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit:  www.FoodserviceSolutions.us for more information.