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McDonald's All-Day Breakfast Could Send Egg Prices Even Higher
Experts say the food giant could disrupt the marketplace.
McDonald's photo
Fast-food giant McDonald's has announced that it will serve up all-day breakfast items, which could send egg prices soaring higher and place a greater strain on demand, experts say. An even bigger increase in egg costs could pummel breakfast franchises that already are weathering high prices.
Egg prices have spiked in recent months because of the worst outbreak of bird flu in U.S. history, killing more than 48 million birds in the first half of the year. Egg prices hit $2.57 a dozen in June, according to the U.S. Agriculture Department. The average price of Midwest large eggs was $2.45 on Aug. 31, compared to $1.35 for the same period a year ago.
“When you’re talking about an organization as large as McDonald’s in the U.S., any product they introduce will have the potential to disrupt the marketplace,” Morningstar’s restaurants analyst RJ Hottovy tells ABC Radio.
But Robert Maynard, CEO of better-breakfast brand Famous Toastery, a franchise based in North Carolina, tells 1851 that he thinks any disruption won't be that dramatic.
“Eggs are under pressure, of course, and I'm sure it won't help if 30,000 stores order more eggs, but I'm sure it will be short-lived.”
Maynard also predicts that McDonald's won't see a huge sales increase from its all-day breakfast plan.
“I don't foresee McDonald's being as successful as they think,” he says. “People want a better breakfast these days. People are more educated food-wise. There will be some people going to McDonald's all day, but Waffle House, IHOP, Denny's, etc., are all dying concepts that serve breakfast all day.”
Read the original story here: ABC Radio
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About the Author
Nick Powills
FollowNick Powills, CFE, founded No Limit Agency in 2008 and serves as Chief Brand Strategist for the Chicago-based firm. No Limit is a full-service communications agency that establishes and elevates brands by bridging Public Relations, Social Media, Marketing, Advertising, Digital, and a lot of creativity, to best strategize well-rounded and successful campaigns for 50+ global franchise brands. By presenting visionary ideas and building real relationships, No Limit is able to create effective media branding strategies to help companies grow. Nick currently leads a staff of writers, media strategists, designers, social media experts and digital producers in an office think-tank where brands are humanized for strong, compelling media stories. Prior to starting No Limit at the age of 27, Nick spent four years working at a franchise PR agency where he mastered the art of building rapport with media outlets and creating newsworthy pitches for earned media placements. He holds a Bachelor of Journalism from Drake University in Iowa.
