Foodservice

Will All-Day McGriddle Prove Too Much for Franchisees?

McDonald's testing expanded all-day breakfast

OAK BROOK, Ill. -- Following in the rollout and success of its all-day breakfast menu, McDonald's is testing the addition of another morning favorite to the lineup: the McGriddle.

McDonald's McGriddles

The quick-service restaurant (QSR) chain plans to start offering an expanded all-day breakfast menu that includes McGriddle sandwiches in 72 restaurants in Tulsa, Okla., starting Feb. 1, according to an Associated Press report.

The test comes after customers complained about the absence of the sandwich when McDonald's launched the limited all-day breakfast menu in October.

McDonald's expects the test to last for two to three months before deciding how to proceed, said the report.

Now, McDonald's restaurants in Tulsa will try adding McGriddle sandwiches, as well as breakfast sandwiches made with biscuits. Currently, restaurants offer breakfast sandwiches made with either biscuits or English muffins, depending on regional preferences. About 80% offer McMuffin sandwiches, with some areas in the south offering biscuits.

The addition of McGriddles and biscuits in the afternoon could prove to be too much of a strain, especially at a time when McDonald's has said it's trying to simplify operations to improve order accuracy and speed, AP said.

The syrupy pancake buns for McGriddles and biscuits would need to be warmed up in ovens, which are also used to heat up apple pies, cookies and mozzarella sticks during lunch hours, LeAnn Richards, a McDonald's franchisee who led a task force on all-day breakfast, told the news agency. McGriddles and biscuit sandwiches are also made with a frozen egg patty, instead of the cracked egg used in McMuffins.

That means franchisees—who already had to buy new equipment to offer all-day breakfast—would need to further juggle grill and oven space for an expanded menu.

"It's too premature to talk about next steps," said Deborah Wahl, chief marketing officer for McDonald's U.S.

McDonald's said franchisees in Kansas City also started offering a Sausage McGriddle last month in response to demand. But those restaurants aren't offering the sandwich with eggs, or biscuit sandwiches.

From its biggest quarterly U.S. sales jump in nearly four years, the Oak Brook, Ill.-based company said this week that sales rose 5.7% in the last three months of year, boosted by the all-day breakfast menu and unseasonably warm weather.

Despite McDonald's recent sales jump, it's still not clear exactly how all-day breakfast is benefiting the chain and whether the effects will last, said the report. The company did not say how much of the increase was from an uptick in customer visits, versus factors likes price hikes or people adding extras onto their orders.

Either way, McDonald's turnaround push is far from over, said AP. The company's U.S. customer visits fell 3% last year, following a 4.1% drop in 2014.

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