MeD'S SERVICE STALLS AT DRIVE-THRU Survey shows decline accuracy, speed; some franchisees blame menu changes

BY JULIE JARGON Drive-through traffic is

snarling McDonald's service-improvement campaign.

Oak Brook-based McDonald's Corp. ranked last out of 25 fast-food chains in a recent study of drive-through order accuracy, down from 20th in 2004. When it comes to drive-through speed, McDonald's went from being the

fourth-fastest chain to the sixth, according to a widely watched survey by QSR Magazine, an in-dustry trade journal.

McDonald's franchisees polled about the results by New York-based equity research firm

. Buckingham Research Group as part of a separate survey re-leased last month blamed the problems on new menu items

and pressure from Oak Brook to speed up service at the drive-through, where McDonald's generates 60% of its sales. Mc-Donald's goal is for customers behind the wheel to wait no longer than 90 seconds-a long drop from the average 167.9-second wait time QSR clocked

See McDONALD'S on Page S

Dri

ve-t

hro

ug

h de

lays

jam

min

g M

cD's

pla

ns f

or

imp

rove

me

nt

for

McD

on

ald

's in

20

05

an

d e

ven

the

15

2.5

seco

nd

s in 2

00

4.

To

be

sure

, the

leng

then

ing w

aits

p

art

ly re

flect

McD

on

ald

's su

cces

s in

att

ract

ing

mo

re c

ust

om

ers

. But

th

ey a

lso

high

light

a c

halle

nge f

ac-

ing

the

chai

n as

it t

ries

to e

xten

d a

turn

aro

un

d th

at b

egan

thre

e ye

ars

ag

o,

wh

en

a n

ew

ma

na

ge

me

nt

team

reig

nite

d sa

les g

row

th w

ith a

ba

ck-t

o-ba

sics

stra

teg

y foc

used

on

cle

an

er

rest

aura

nts,

long

er s

tore

hou

rs a

nd

m

ore

he

alth

ful m

en

u ite

ms.

Mo

re

tha

n a

ye

ar a

go

, McD

on

ald

's si

g-na

led t

ha

t fas

ter,

mor

e ac

cura

te or

-de

r fill

ing

wo

uld

be

the

next

step

.

DRIVI

NG F

OR DO

LLAR

S In

fa

st f

oo

d,

time

lite

rally

is

mo

ne

y. A

nd

wit

h s

ale

s g

row

th

slo

win

g a

t McD

on

ald

's, s

ha

vin

g

off

se

con

ds a

t th

e d

rive

-th

rou

gh

is

m

ore

im

po

rta

nt

tha

n e

ver.

S

ales

at U

.S. M

cDo

na

ld's

op

en

at

leas

t 13

mo

nth

s ro

se 4

.8%

in N

o-

vem

be

r, d

ow

n fr

om

a 7

.1

in-

crea

se in N

ove

mb

er 2

00

4.

Laur

ie F

eld

a se

es no

sig

n o

f im

-p

rove

me

nt in

McD

on

ald

's dri

ve-

thro

ug

h se

rvic

e.

"McD

on

ald

's is

th

e w

ors

t a

t g

ett

ing

thin

gs

rig

ht,

" M

s. F

eld

a,

28

, sa

id d

uri

ng

a r

ece

nt t

rip

to

th

e M

cDo

na

ld's

dri

ve-t

hro

ug

h a

t 4

60

1 W

. D

ive

rse

y A

ve.

Acc

ord

-in

g to

Ms.

Fe

lda

, wh

o a

ltern

ate

s

--:

: ::.

:::

,.-:-.

:.--'

:; '

McD

on

ald

's cu

sto

me

rs are

wa

itin

g

acc

ord

ing

to Q

SR

Ma

ga

zin

e,

20

04

1.

We

nd

y's

2. C

heck

er's

3.

Ta

co. B

ell

5.

Ch

lCk-t

ll-A

6.

Ra

lly's

.

TIME

IS MO

NEY

Ave

rag

e tim

e

in s

eco

nd

s 1

24

] 1

31

.5

148.

2

2005

': 1.

We

nd

y's

'.>

.'

2

.:C

he

cke

r'sc

· '

3. T

aco

5.

, Dri

ve-t

hro

ug

h .. serv

ice

.. ·wh

en

·.fa

st:to

oa

of t

he

ir s

ales

. McD

on

ald

's sluggis

h se

rvic

ei.s

.co

stin

gJh

em

--.b

ig

time

.

5,400

'.11

.9 )b

.. Se

cond

s in

Et;

( Ca

rs ser

ved;

. Se

cooo

s MeD's

'" E

t;:?'

· Extr

a car

s thE!

; 28

pe

ak pe

riod.

.... E

xtra a

nnua

l reve

nue

a typ

ical

perre

stau

rant

'.

. mus

t shav

e off i

tSre

sta

lJra

nt.

<car

swou

ld brin

g p

e('i..if

McD

onald

'shits

90

-minu

te

durin

g tha

t ,

.ave

rage

drive

-. .'

could

serv

e .'

durin

g pea

ktim

e,

. an

nuall

y.,'

. its

targ

et at,

lun

ch ru

sh

at cu

rrent

servi

ce

: th

roug

h tim

e to

durin

g the

peak

';

, ba

sed o

n a ..: assu ITli

ng30

0goo

d '·

all1

3,6

73

sp

eed

.'

its 9D-

seco

nd targ

et

,pe

rio

d;S

5a

ve

rage t

icket"

' d

rivec

thro

ugh d

ays

U.S. lo

catio

ns

"Cra

inses

timat

e, Mc

Dona

ld's d

oesn

't relea

se av

erag

e ticke

tpric

e ..

. ' S

ource

s:Malc

olmKn

app;

........ ;

.. '.,

;<"

,,,:1:

< ..

tN'

.. F

n'

be

twe

en

We

nd

y's,

Ta

co B

ell

an

d

McD

on

ald

's th

ree

to fi

ve t

ime

s a

we

ek,

"M

cD

on

ald

's a

lwa

ys g

ets

a

t le

ast

on

e th

ing

wro

ng

."

Err

on

eo

us o

rde

rs ea

t up

prec

ious

se

con

ds a

t th

e p

ick-

up

win

do

w, a

tr

en

d fr

anch

isee

s say

isn

't lik

ely

to

reve

rse a

nyt

ime

so

on

: 52

% o

f th

e

2 7

fra

nch

ise

es w

ho

re

spo

nd

ed

to

the

Buc

king

ham

Res

earc

h pol

l sai

d o

rde

r acc

urac

y pro

ba

bly

wo

n't

im-

pro

ve in

20

06

, wh

ile 1

5%

sa

id it

defin

itely

wo

n't.

Ma

ny

blam

ed th

e sa

lad

s, c

hic

ken

sa

nd

wic

he

s an

d

oth

er f

are

McD

on

ald

's ha

s a

dd

ed

in

rec

ent y

ears

. "W

ith

' co

nti

nu

ed

em

ph

asi

s on

sp

ee

d,

acc

ura

cy s

uff

ers

,"

on

e

fra

nch

ise

e n

ote

d in

th

e a

no

ny-

mo

us

surv

ey.

"A

lso

, th

e n

ew

ch

icke

n p

rod

uct

s ha

ve to

o m

an

y o

pti

on

s."

Ea

ch t

ime

Mo

lly

Am

be

rso

n,

35

, o

rde

rs a

Ha

pp

y M

ea

l w

ith

ap

ple

s fo

r h

er 3

-ye

ar-

old

da

ug

h-

ter,

it c

om

es w

ith

frie

s in

ste

ad

. h

ap

pe

ns

eve

ryw

he

re, n

ot

just

at t

his

McD

on

ald

's, b

ut a

t th

e

air

po

rt a

nd

in o

the

r citi

es,

" M

s.

Am

be

rso

n sa

id w

hile

he

r da

ug

hte

r ro

mp

ed

at t

he

McD

on

ald

's P

lay-

plac

e a

t 26

08

W.

Ad

dis

on

St.

Ste

ve B

iga

ri,

a fr

an

chis

ee

wh

o

ow

ns

12

McD

on

ald

's i

n C

ol-

ora

do

Sp

rin

gs,

Co

lo.,

say

s sp

ee

d

an

d a

ccu

racy

ha

ve b

ee

n o

n t

he

rise

at h

is s

tore

s sin

ce 2

00

3, w

he

n

he c

rea

ted

a c

all

cen

ter t

o t

ake

d

rive

-th

rou

gh

o

rde

rs

for

his

rest

au

ran

ts an

d fo

r se

vera

l oth

er

fra

nch

ise

es.

De

clin

ing

to p

rovi

de

sp

eci

fics,

he

says

th

e i

mp

rove

-m

en

t ha

s be

en "d

ram

ati

c."

INTE

RNAL

EVA

LUA l

iONS

B

ut M

cDo

na

ld's

ha

s no

pla

ns t

o

exp

an

d th

e u

se o

f ca

ll ce

nte

rs fo

r o

rde

r-ta

kin

g, a

co

mp

an

y sp

oke

s-w

om

an

says

. Inst

ea

d, M

cDo

na

ld's

is

try

ing

to

imp

rove

dri

ve-t

hro

ug

h

spe

ed

by

off

eri

ng

ca

shle

ss pa

y-m

en

t o

pti

on

s, a

dd

ing

lan

es

an

d

au

tom

ati

ng

b

eve

rag

e

serv

ice

(Cra

in's

, Ju

ne

27)

. In

a st

ate

me

nt,

M

cDo

na

ld's

V

ice

-pre

sid

en

t o

f U

.S.

Op

era

tio

ns

Ed

ie

Wa

dd

ell

says

: "T

hro

ug

h re

sta

ura

nt in

spec

-tio

ns,

cu

sto

me

r a

nd

em

plo

yee

fe

edba

ck an

d m

ore

, we

are

co

ntin

-u

ally

eva

lua

ting

ou

r p

erf

orm

an

ce

ag

ain

st o

ur

hig

h s

tan

da

rds.

Ou

r o

vera

ll in

tern

al s

core

s are

up

, an

d

we

h

ave

co

nsi

ste

ntly

imp

rove

d

ove

r th

e p

ast

two

ye

ars

in o

rde

r a

ccu

racy

, dri

ve-t

hro

ug

h sp

ee

d of

serv

ice,

an

d in

th

e a

rea

s of q

ua

lity,

se

rvic

e an

d cl

ea

nlin

ess

."

McD

on

ald

's w

ou

ldn

't

sha

re

da

ta fr

om

th

ose

inte

rna

l me

as-

ure

s o

r co

mm

en

t on

th

e Q

SR

st

ud

y, w

hic

h r

eco

rde

d w

ait

tim

es

du

rin

g 5

98

vis

its t

o M

cDo

na

ld's

d

rive

-th

rou

gh

s.

Co

nta

ct: jj

argo

n@cr

ain.

com