McDonald's Mighty Wings Problem: What is Going On at HQ?
The restaurant business is dynamic and ever changeable. You can never tell what consumers will do.
But the depth of the recent Might Wings product problem at McDonald's is surprising. That chain invented chain restaurant systems and processes in the 1950s and 1960s. With McDonald's sheer number of test market routines, consumer research, marketing councils, highly paid ad agencies, new product development staff, daily product mix polling, supply chain staff, sophisticated contracting tools and contract bargaining ability that just about every vendor would want to be part of, ten million pounds or 20 percent of Mighty Wings product overstock is way too much.
Bloomberg notes that McDonald's will now simply discount the product. It notes that the spiciness of the Mighty Wings should have been talked about and worked out earlier before its original launch. Yes. But in an 89% (US) franchised company-- it is franchisees who pay in the end. The fix isn't as easy as the words given to the media indicate.