Even industry giants continuously strive for innovation.
In fact, that’s the reason why they became giants in the first place– they endlessly find ways to grow the business, conduct crew trainings for the preparation of their latest discoveries, test the product, and have expert marketers deliver effective ways to sell them.
And yes, fast food giant McDonald’s is at it again. They are now in the process of testing a new line–baked goods, which are currently being offered at their New England restaurants to see if this way of expanding their breakfast line is feasible or not.
Baked goods all day
Breakfast is said to account for around 25% of McDonald’s sales and has always been a major concentration in their menu development in the past years. The chain introduced its Fruit and Maple Oatmeal last year, and in 2010, launched its Breakfast Dollar Menu which became a hit to breakfast lovers. New menu items created by their able chefs (in excellent chef coats) like muffins, vanilla scones, banana bread and cheese Danish will now be available for the customers the whole day, unlike their traditional breakfast menu –pancakes, oatmeal, Egg McMuffin—which are only offered in the morning.
McDonald’s also claim that baked-goods are an ideal pairing for their coffee–something that would allow them to introduce their best selling McCafe to their customers. McCafe, as we reported here not too long ago, became one of the chain’s top sales drivers last year, allowing McDonald’s to become one of the few restaurants last year which consistently went over their targeted revenue and profits.
Some analysts are saying that Dunkin’ Donuts is one of the reasons why the chain’s chefs in outstanding chef coats are creating these heavenly goodies and are doing their test-market in New England. Ron Paul, Technomic’s president, says that the introduction of the chain’s breakfast pastries in New England is a calculated positioning to keep up with fast food rivals like Dunkin’ Donuts. “McDonald’s just had to respond to competition,” he said.
Lou Provenzano, an owner of 13 McDonald’s stores in Rhode Island and Massachusetts, says that it’s really all about consumers’ demand. “We are only responding to our customers who continuously ask us for sweet or baked items to serve to them,” he maintains.
Dennis Lombardi from food design and market programmers WD Partners, on the other hand, thinks that McDonald’s biggest competition is none other than itself. “This move is a part of McDonald’s more than seven years of growth that remains to be unprecedented in the restaurant industry,” he said. “This addition of another breakfast line makes the restaurants appeal to more consumers, and the new baked breakfast goods give consumers another option, especially to those who think that the traditional breakfast lines are too heavy.”