Embrace change to become a leader during any crisis. That is what McDonald’s have done during the current COVID-19 situation. Their strategy is to not just survive but adapt and evolve. McDonald’s latest business move gives us insights to grow even during crisis.
McDonald’s once took the bold decision to have an all-day breakfast option. It was appreciated by the loyal customers but was critiqued for lowering morning traffic. They have now taken the decision to phase out the breakfast-all-day option. This throws light on insights for any business trying to cope with the difficult times.
1. Keep it simple
Most businesses have a combination of simple and complex resource-consuming products/services. Check, if it is possible to remove fully or partly the part that takes the most resource for the least return. This can be your priority.
This is also to streamline their kitchen operations.
2. Customer experience
Less choice means quick service while waiting for their order. This can apply to other areas of customer choice that can be eliminated without hurting overall sales.
3. Maximize profit margins
Since breakfast items are usually where the customer gets more for less, removing low margin items during such a pandemic is wise.
4. Continuous service
During crisis we see many restaurants struggle to stay in business. Keeping the minimum service or product that is profitable is essential. The continuous service and presence will eliminate competition. The customers are not faced with the decision to choose another brand.
5. Stay ahead and adjust
When demand is light, conserve your resources. You will need to be in a position to get back on track and face competitors as soon as this pandemic crisis ends. Not all will be able to survive this challenge.
6. Revise and rework on profit strategy
Some products or services might be the company’s way of giving gratitude to the customer. These might take a big pinch of the profits during crisis. Now is a time to go and re-look into those profit pinching strategies to be eliminated. This helps in the long run too.
7. Timing
Taking decisions that impact the business positively helps you gain control of the situation. Especially at times when everything seems to be controlled by the external factors.
McDonald’s latest business move, thought might seem minor, provides valuable business insight at such uncertain times.
Source: Inc
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