Despite effusive support from McMuffin lovers all across the country and the corporation’s determination to make this latest initiative save the company from its ongoing sales decline, McDonald’s franchisees are not feeling the love from all-day breakfast, a recent survey shows.
According to data from analyst Mark Kalinowski of Nomura Holdings, small stores in particular are struggling with the new equipment, which requires more labor and takes up space. The survey took stock of 29 franchisees who operate some 226 McDonald’s locations, out of roughly 14,000 in the United States.
For these stores, overall service has slowed down, and customers have responded by “abandoning us in droves,” one franchisee wrote. In order to participate in all-day breakfast, each franchise location must pay for kitchen upgrades, which is particularly difficult for those locations struggling from the chain’s well-documented drop in sales and general traffic.
Another McDonald’s operator complained that the new menu was effectively lowering profits. “All-day breakfast is a non-starter,” the franchisee wrote. “We are trading customers down from regular menu to lower-priced breakfast items. Not generating new traffic.”
Meanwhile, McDonald’s corporate headquarters recently praised the rollout of all-day breakfast as proof that, “when we listen to and respond to our customers and align around a great execution plan, we will grow our business and take share.”
In an emailed statement to the The Daily Meal, McDonald’s spokesman Lisa McComb reiterated the largely positive impression of all-day breakfast. “We’re hearing from customers and the overwhelming majority of our 3,100 franchisees that All Day Breakfast is a hit,” McComb said. “In fact, since the launch, McDonald’s has reached its highest brand score in two years according to YouGov BrandIndex.”