McDonald’s Reports Climbing OperationsBy Sofía Hanna | Thu, 11/19/2020 - 16:58
COVID-19 has had a great impact on fast food services and restaurant operations. McDonald's had to stop its expansion plans in Mexico and the chain's digitalization due to mobility restrictions and a decrease in sales, reports Forbes. During a press conference, Francisco Bosch, General Manager of the company in Mexico, explained McDonald’s is on a road to recovery and it will gradually resume its pre-pandemic plans.
According to Forbes, McDonald's revenues dropped by 62 percent due to circumstances brought by the pandemic. Still, according to Bosch, the company is starting to reach its numbers from 2019, bringing along new possibilities for the company.
As mentioned in a previous MBN article, restaurants were one of the business sectors worst hit by the crisis as social-distancing prevented these businesses from operating properly. Despite the difficulties, fast food chains favored business models like home delivery services and drive-thrus. Duncan Montero, General Manager LAC North Region of Burger King at Restaurants Brands International, told MBN the company had started to grow once again. It expects more from its delivery service even though the company is aware of the clients' preference of going to the restaurant.
Montero and Bosch are on the same page. During the McDonald’s press conference, the latter explained that for the last months, AutoMac and McDonald’s deliveries had been used very frequently by clients. "We are close to doubling the number of orders that we had at the beginning of the year. We anticipated this delivery issue as we did not start with the pandemic; we had already been working on home deliveries since 2019. Fortunately, this gave us the necessary push from Day 1 of the pandemic," Bosch told Forbes. The closing of malls was a big factor in plummeting sales because there was no way to appeal to deliveries or AutoMacs among shopping mall-goers. Still, Bosch said that things have been improving due to the help from landlords and developers.
The fast-food industry has continued to grow in Mexico despite the pandemic. According to an MBN article, fast-food chains have a 47.43 percent share of the consumers who eat outside. McDonald’s stands in second place after Burger King as the favorite fast-food restaurant in Mexico.