In the Sunday, January 11 2009 New York Times Business front page article on McDonald’s, several reasons were laid out for its success: new menu items, longer hours, new buildings, more measured growth, an operationally focused “Plan to Win”. It focuses on people, products, place, price and promotion.
Not noted, but also true, is that McDonald’s’ earnings flow itself is diversified, with company operated stores, franchisee operations and real estate operations (lease / sell) all earnings contributors. McDonald’s also pays attention to details. In just walking through the stores, talking to staff and driving McDonalds’ markets, a few observations are apparent;
· McDonald’s has had its nutritional menu components listed years ago—not fighting it like some industry trade groups do– but full disclosure, upfront.
· Its menu has every daypart—breakfast, lunch, dinner, AM and PM snack, dinner and late night covered—with both value offerings and premium price points. That’s the barbell strategy.
Read full post.