Analysis of McDonald's Food & Beverage Management Business Plan

This report delves into McDonald's food and beverage management, examining their business plan for introducing a new breakfast meal to enhance market presence and compete in the fast-food industry. The analysis includes competitive evaluations, strategies for product development and marketing, and an understanding of consumer trends. It covers branding, food production methods, service quality, menu costing, pricing techniques, sales promotion, and operational management issues such as service sequence, training, and customer service. The report also addresses current legislation awareness and concludes with a comprehensive overview of McDonald's approach to remaining competitive in the global fast-food market. The report analyzes McDonald's strategies for menu costing, budgeting, and pricing techniques, and also covers sales promotion and the importance of training and customer service in maintaining a competitive edge. The study emphasizes the significance of adapting to consumer trends, especially the shift towards healthier food options, and highlights how McDonald's is leveraging its brand recognition and operational efficiency to achieve its business goals.

Running Head: Food & Beverage Management
mcdonald’s
Food & Beverage Management

Food & Beverage Management 1
Table of Contents
Introduction......................................................................................................................................2
Business Plan...................................................................................................................................3
Aim of McDonald’s.....................................................................................................................3
Evaluation and Competition.........................................................................................................3
Product Concept, development, and marketing...........................................................................4
Consumer Trends.........................................................................................................................5
Branding and Theming.................................................................................................................5
New Food and beverage management system.................................................................................6
Food production methods.............................................................................................................6
Service and Quality......................................................................................................................6
Menu Costing and Budgeting......................................................................................................7
Pricing Techniques.......................................................................................................................8
Sales Promotion...........................................................................................................................8
Planning and operational management issues...............................................................................10
Service Sequence.......................................................................................................................10
Training......................................................................................................................................10
Customer Service.......................................................................................................................11
Current Legislation Awareness......................................................................................................12

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Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
Fast food restaurants have developed their effective market image in very short period of
time. The invention of fast food items relates with the western part of the globe but now it is
being the favourable item across the globe. McDonald’s is one of the fast food restaurant chains
and it is an American hamburger outlet which has developed their market image in most of the
countries across the globe. McDonald’s is planning to introduce some new concept in relation to
the food items in the target market so that their market share in the competitive market could be
enhanced. For evaluating outcomes in relevance with this report, competitive analysis will be
done to analyse the strategies used by the primary competitors of McDonald’s which could affect
the current position of the organization in the competitive business environment. Apart from this,
methods for food production, menu budgeting, pricing techniques, sales promotion, training,
customer service, etc. will also be covered under this report for analysing the effectiveness of the
business plan introduced in the target market.

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Business Plan
Aim of McDonald’s
McDonald’s is planning to introduce the breakfast meal and under that meal, all the
healthy items will be included which can boost up the energy level of their consumers. Breakfast
is very crucial to start a healthy day. It boosts up the energy level of the people many famous
doctors have also suggested that breakfast should not be skipped as well as healthy items must be
consumed in the breakfast. In order to attract the consumers, McDonald’s has planned to
introduce a special breakfast meal under which a healthy wrap will be included which will be
made of egg and wheat grains. Apart from the wrap, choice will be given to the consumers to
select one item from potato fries and potato wedges. And amongst the Hot Coffee and the mix
fruit juice, consumer can select any one item as per their choice. A mixture of all these three
items will be included in the breakfast meal and it will provide sufficient energy which is
required to gain from the breakfast. The specialty of this meal will be that it will be available
from 9.00 AM till the 11.00 AM and then the consumers can order any item from the menu
(Mohammed, Rashid & Tahir, 2014).
Introducing this type of food items in the fast food industry will help the organization to
gain adequate competitive advantage in the target market. Apart from the competitive advantage,
organization will be able to meet its desired objectives and goal with the introduction of the new
concept of fast food in the market (Klein, 2016).

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Evaluation and Competition
Fast Food industry has a great competition across the globe. There are numerous
companies available in this industry and McDonald’s is one of those brands which have their
market presence in most parts of the globe. Subway, KFC, Burger King, etc. are the primary
competitors of McDonald’s in the international market. KFC is famous for serving fried chicken,
burgers, etc. Subway has the unique range of vegetarian as well as non-vegetarian burgers and
the Burger King is also famous for delivering unique range of burgers, potato fries, etc. In order
to gain the competitive advantage, organization needs to adopt some adequate strategies through
the organization could be able to develop its unique image in the target market (Kim & Hyun,
2011).
McDonald’s have unique and trained staffs which helps them to be unique in the
competitive fast food industry. Apart from this, their promotional campaigns and the design of
their promotional strategies are also provided them a competitive advantage. They are present in
more than 100 countries across the globe and along with this, their secret formula to produce
delicious burgers, ingredients used to produce those burgers, etc. are not revealed yet (Johnston
& Bate, 2013).
Product Concept, development, and marketing
The basic concept of launching the breakfast meal is to enhance their market presence
and the market share in the fast food industry. Breakfast meal is launched to provide a healthy
breakfast to its consumers and this will increase the positive image of the organization amongst
the consumers (Helms & Nixon, 2010).

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In terms of marketing and development of the new concept of meal, McDonald’s will use
the attractive and meaningful advertisement content through which adequate demand could be
obtained for the particular meal. Along with the unique idea of advertisement content,
organization could also use their existing advertisement and promotional mediums for marketing
the new meal introduced with the purpose of enhancing the demand for the new product in the
target market (Gregor & Hevner, 2013).
Consumer Trends
Nowadays, consumers have shifted towards the healthy food products while still there are
certain age group audience which is still addicted towards the fast food items. In order to change
the consumer’s perception, organization has invented the idea of introducing healthy breakfast
meal. With the consumption of healthy breakfast meal, McDonald’s will be able to make positive
attitude for fast food industry. Along with these strategies, feedbacks and surveys techniques can
also be included in the business plan of the McDonald’s in order to promote the healthy breakfast
meal in the target market. Apart from this, organization could also use positive taglines and the
positive promotional strategies through which consumer's perception could be changed for the
McDonald’s (Greer & Ferguson, 2011).
Branding and Theming
McDonald’s does not need to put much effort in relevance with the branding of the new
meal to be launched in the target market. This is due to the huge contribution of the McDonald’s
towards the fast food industry. They have built effective and efficient goodwill in the
competitive business environment. Hence, branding will be automatically done for the new
breakfast meal. Apart from this, theme of the meal will include the attractive pictures and

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designs of healthy food items. Healthy slogans could also be used in terms of making the theme
of the new meal more attractive and effective (Fischer, et. al., 2011).

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New Food and beverage management system
Food production methods
For producing fresh and healthy breakfast meal, McDonald’s needs to adopt some
effective strategies through which consumers can get their breakfast meal within short period of
time. Raw materials used for making the egg wraps, fries, nudges, coffee, and juices will be
stored in an effective place so that their quality and freshness could be preserved. These are the
main components of healthy breakfast meal and in order to meet the objectives of the
organization, appropriate and effective techniques will be used to make finished items within
certain period of time so that consumers do not need to wait for getting their order (Czepiel &
Kerin, 2012).
Service and Quality
McDonald’s is known for delivering adequate quality products and this is the major
reason for their effective goodwill in more than 100 countries across the globe. Apart from
delivering adequate qualitative products, they are also known for their instant service qualities.
For improving their service, McDonald’s uses various techniques such as digitalised system for
taking and delivering the order to the consumers. This helps the consumers to get their ordered
items instantaneously with satisfactory and adequate quality. Quality measures prescribed by the
local government of every country and the quality measures adopted by the McDonald's have
quite a similar impact. McDonald’s have developed their quality measures in order to develop
and maintain centralised controlling system over all the outlets present in the international as
well as in domestic market (Cornelissen & Cornelissen, 2017).

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Apart from the quality measures adopted for maintaining the food quality as well as to
deliver adequate qualitative products to its consumers, McDonald’s also uses trending marketing
strategies for attracting the consumer’s interest towards the organization. They have made their
kitchen area open to maintain the transparency in relevance with the ingredients and the
manufacturing methods used for making the finished goods. Consumers can also visit the kitchen
area after taking the permission from the authorised person available in the outlet of the
McDonald’s and this rule applies to all its authorised stores across the globe (Brandt, Cazzaniga
& Hann, 2011).
Menu Costing and Budgeting
Menu costing and budgeting is another crucial step in terms of developing the demand for
new range of meals in the target market. For this, McDonald's have segregated its menu in two
parts, one is for breakfast meals and another one is for the rest of the day. Menu for breakfast
will remain same and the items in the breakfast meal will be available for only the selected time
period. Whereas other items will be available for rest whole day until the closing time of the
outlets (Armstrong, et. al., 2015).
Budgeting is the term which is used to segregate the various types of future costs which
will be incurred for making and promoting the newly launched products on the basis of budget
allocated for the management of the organization. Under the allocated budget, organization needs
to segregate those in such a manner which could bring positive as well as effective results for the
organization (Angeloska-Dichovska & Mirchevska, 2017).
Organization needs to perform their activities on the basis of budget allocated for
performing those activities because if the budget will not be considered, the organization may

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suffer from the over cost incurred issues and this may lead to the enhancement in the price set up
for the newly launched breakfast meal. Hence, the bifurcation of the budget should be done in
accordance with the budget allocated for conducting the activities in relevance with the
attainment of gaols set up by the management for the organization (Ang, Benischke & Doh,
2015).
Pricing Techniques
Cost-effectiveness technique will be the most useful technique for McDonald's in terms
of setting the reasonable price for the newly launched meal. Adaptation of adequate pricing
strategy helps the organization to set the minimum and reasonable prices so that demand for the
new product could be increased in terms of attaining the goals and the objectives of the
organization. Under this technique, organization needs to cut their additional expenses to set the
reasonable price for the consumers (Akaka, Vargo & Lusch, 2013).
Apart from the cost effectiveness technique, organization could also use strategy under
which when the demand of the products will rise in the target market, the prices will also be
increased in order to attain the maximum rate of profits and the same should be done in the
situation when the demand for the product decreases. And in this scenario, organization will
decrease the prices of the products in order to enhance the demand for the product. This is the
most suitable and effective technique which could be used for enhancing the demand for the
product.
Sales Promotion
This is the technique which is used to encourage the consumers to purchase the product.
This technique is used as the short term approach for enhancing the volume of the sales and it

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helps the organization to boosts up the sales in the short period of time. The techniques which
could be used for enhancing the sales of the organization are advertisement and the promotional
strategies. These methods help the organization to attract the number of consumers towards the
organization to consume the newly launched healthy breakfast meal. Advertisement could be
done through various mediums and the most trending and effective mediums are print medium
for advertisement and the electronic medium of advertisement. Along with the new method
chosen for promoting the new products of the organization, existing methods of advertisement of
the organization could also be used in order to decrease the cost of the production because new
promotional campaign will indicate to increase in the cost and it will directly impact upon the
prices of the products (Aaker, 2010).