Mcdonald cost decrease strategy

 Essay about Mcdonald cost reduction strategy

In 2008 McDonald's managing made a decision that was openly criticized by all of the Buck Menu enthusiasts. The take out company chosen to remove that second extra slice of cheese through the infamous fan-favorite Double burger. They have also experimented in a variety of markets the actual reaction will be when they present the McDouble burger with only one piece of cheese versus the Double cheeseburger.

This decision of theirs triggered a staggering global reduction of costs worked out to be almost $279 , 000, 000 for 08.

After all their tests with the Double Burger changes the McDonald's global management learned that most of the buyers prefer to maintain your second slice of dairy products and pay extra cash for it.

All in all, it has been determined that one piece of cheese might save the franchise about 6 mere cents per burger. Evidently by simply making a simple change removing a slice of parmesan cheese, the mega corporation surely could boost the cashflow globally by nearly $15, 000 a year per restaurant.

They equally saved cash, by reducing the buck menu cheese burger to one piece of cheese and made a larger gain charging more for the burger that was at first on the dollars menu, but is not now. THEREFORE , they did save money by removing a piece of parmesan cheese from the dollar menu hamburger.

The McDouble has one slice. The double cheeseburger has two slices. They will removed the double cheeseburger from the dollar menu and created the McDouble. They also avoid " save" money this way. They built a larger profit.


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