Are you one of the millions of people who have visited a McDonald’s for the first time in years simply because you could order a McMuffin at 9pm? Join the club. For the first time in over two years, McDonald’s locations are enjoying a sales increase, and it’s more than likely thanks to all day breakfast. But, like any good thing in this world, where one entity prospers, another suffers. Won’t anyone think of the franchises?
According to a Jack in the Box earnings release, their profits have taken a dive thanks to all day breakfast:
Jack in the Box sales in the last part of the quarter were lower than we anticipated as several competitors began promoting aggressive value offers. We also experienced weakness at breakfast and lunch throughout the quarter, which we attribute primarily to our decision to shift the timing of some of our promotional activity around breakfast to the second quarter as compared to the first quarter of last year. In addition, we believe a competitor’s messaging around its launch of all-day breakfast had some impact on our results, particularly in the 10:30 a.m. to noon period.
Why they have to beat around the bush and say “a competitor” like someone else in the fast food business beyond McD’s is slinging hash at 3pm is beyond me, but the message is clear: breakfast all day is affecting fast food as we know it.
But, does it really matter? It’s cheap, fast food we’re talking about, and capitalism is the name of the game when it comes to bringing customers through the door. Evolve or die should be the slogan coming out of Ronald McDonald’s mouth. This is why Taco Bell never rests with their innovation beyond the bun, and why so many restaurants have been trying new things to boost sales.
(Via Business Insider)