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Prepared for McDonald’s 24-Hour
Franchises
July 7, 2014
Prepared by Jonathan Richters
Repeat Customer
Altering the After-Midnight Value
Menu
Overview
Problem
Identified
Solution
Proposed
Action
Recommended
Introduction
Summer 2012- After Midnight value menu
introduced in test markets
Early 2013- Erratic 1st quarter sales, menu items
added, After Midnight menu implemented.
Late 2013- 4th quarter sales declines, McGrath
(2014) reports that about 200 companies attribute
inclement weather to low sales. Ciura (2014)
reports declining traffic as Americans look for
healthier dining options.
The Opportunity
Moving forward in 2014.
After Midnight value menu appeals to Gen Y
consumers
Additional traffic-boosting promotions
Make alterations to improve appeal, sales and
traffic
Benefits and Risks
Benefits Risks
Equal distribution of breakfast and
dinner prevent customers from
having to settle.
Increase in costs for marketing and
production.
The change should increase traffic,
which in turn creates increased
revenue.
Sales generated may not be enough
to account for existing problems
Further establish the brand within a
market segment that has little
competition.
The percentage of customers
served during this time is growing
but still very small.
New competitive advantage
Final Recommendation
1. Conduct consumer research to
determine whether consumers want
more breakfast items.
2. Examine previous sales to determine
which items should be added or
removed.
3. Adjust the menu to include an equal
number of breakfast entrees and
dinner entrees.
4. Track sales records for one fiscal year
Highlighted References
Ciura, B. (2014, June 30). Is the Dinner Box the
Cure for What Ails McDonald's?. Retrieved from
http://www.fool.com/investing/general/2014/06/30/
is-the-dinner-box-the- cure-for-what-ails-
mcdonalds.aspx
McGrath, M. (2014, April 22). McDonald's First
Quarter Profit Falls As U.S. Same-Store Sales
Decline. Retrieved from
http://www.forbes.com/sites/maggiemcgrath/2014
/04/22/mcdonalds-first-quarter-profit- falls-as-u-s-
same-store-sales-decline/
Appendix
This PowerPoint presentation can be viewed using
the link below.

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Final formal presentation_richters

  • 1. Prepared for McDonald’s 24-Hour Franchises July 7, 2014 Prepared by Jonathan Richters Repeat Customer Altering the After-Midnight Value Menu
  • 3. Introduction Summer 2012- After Midnight value menu introduced in test markets Early 2013- Erratic 1st quarter sales, menu items added, After Midnight menu implemented. Late 2013- 4th quarter sales declines, McGrath (2014) reports that about 200 companies attribute inclement weather to low sales. Ciura (2014) reports declining traffic as Americans look for healthier dining options.
  • 4. The Opportunity Moving forward in 2014. After Midnight value menu appeals to Gen Y consumers Additional traffic-boosting promotions Make alterations to improve appeal, sales and traffic
  • 5. Benefits and Risks Benefits Risks Equal distribution of breakfast and dinner prevent customers from having to settle. Increase in costs for marketing and production. The change should increase traffic, which in turn creates increased revenue. Sales generated may not be enough to account for existing problems Further establish the brand within a market segment that has little competition. The percentage of customers served during this time is growing but still very small. New competitive advantage
  • 6. Final Recommendation 1. Conduct consumer research to determine whether consumers want more breakfast items. 2. Examine previous sales to determine which items should be added or removed. 3. Adjust the menu to include an equal number of breakfast entrees and dinner entrees. 4. Track sales records for one fiscal year
  • 7. Highlighted References Ciura, B. (2014, June 30). Is the Dinner Box the Cure for What Ails McDonald's?. Retrieved from http://www.fool.com/investing/general/2014/06/30/ is-the-dinner-box-the- cure-for-what-ails- mcdonalds.aspx McGrath, M. (2014, April 22). McDonald's First Quarter Profit Falls As U.S. Same-Store Sales Decline. Retrieved from http://www.forbes.com/sites/maggiemcgrath/2014 /04/22/mcdonalds-first-quarter-profit- falls-as-u-s- same-store-sales-decline/
  • 8. Appendix This PowerPoint presentation can be viewed using the link below.