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McDonald’s Unveils Secret Weapon Against High Australian Sales During Coronavirus Pandemic

McDonald’s reveal their secret weapon to record sales during the coronavirus pandemic as they cash in on silver-plated Australians

  • McDonald’s took advantage of the COVID-19 lockdown by doubling online orders
  • Chain said delivery orders as a percentage of sales rose from five to 10 percent
  • Success in the delivery market led to the company launching its own online service
  • Company said Australian arm boosted by restaurants remaining open during crisis

McDonald’s has benefited from the coronavirus pandemic in Australia as the fast food restaurant registers double the number of online orders.

The local branch of the hamburger chain was named in the company’s June update because it is located in one of the few countries where the company exceeds last year’s sales.

McDonald’s said online delivery orders in Australia make up 10 percent of sales, compared to five percent before the coronavirus crisis began.

The company’s success in the delivery market through third-party suppliers such as Uber Eats and Deliveroo has prompted McDonald’s to launch its own delivery service that focuses on regional areas.

A woman delivering food in a mask depicted in Sydney. McDonald's has announced that national orders for online delivery have risen from five percent to 10 percent during the crisis as Australians need to stay at home

A woman delivering food in a mask depicted in Sydney. McDonald’s has announced that national orders for online delivery have risen from five percent to 10 percent during the crisis as Australians need to stay at home

Andrew Gregory, CEO of McDonald’s Australia, said the purpose of the service was to provide customers with access in cities not covered by companies such as Uber Eats.

The partnership with Menulog was announced in April and includes more than 60 restaurants, including Dubbo and Bathurst in the New South Wales and Colac region west of Melbourne.

“Online delivery was about 5 percent of our business before COVID-19 and already a strong part of our business with 600 restaurants,” said Gregory The Australian.

“I think what we recognized right away, because trends accelerated during COVID-19, was delivery.

McDonald’s has recently expanded to more than 900 restaurants nationally, and Mr. Gregory said in-house delivery exemplified the chain’s ‘agility’ in finding holes in the market.

Company executives said last week that the Australian branch had strong sales in May and June due to both drive-through and delivery performance.

McDonald's has launched its own delivery service that focuses on regional areas. Shown is a McDonald's sign in Maryborough, northwest of Melbourne

McDonald's has launched its own delivery service that focuses on regional areas. Shown is a McDonald's sign in Maryborough, northwest of Melbourne

McDonald’s has launched its own delivery service that focuses on regional areas. Shown is a McDonald’s sign in Maryborough, northwest of Melbourne

Australia – along with Canada and the US – was one of the few markets where restaurants remained open during the pandemic, said Chris Kempczinski, CEO of McDonald’s Corporation.

Of the chain’s 39,000 restaurants worldwide, 96 percent are now open, compared to 75 percent at the beginning of the second quarter.

Comparable store sales that were down 39 percent in April were down just 12 percent in June.

However, the recovery is uneven as stores with drive-through windows recover faster as customers try to limit contact, the company said.

Australia’s economic demise at a glance

Figures show that nearly one million jobs were lost between mid-March, before the closure and at the end of May.

Nationally, the number of people with a job has dropped from 13 million to 12 million in just over two months, and figures for June will not be released until mid-July.

Treasury predicts a budget deficit of $ 184.5 billion for 2020-21, compared to a deficit of $ 85.8 billion in 2019-20

This will account for 9.7 percent of gross domestic product – the highest part of the economy since 1945 at the end of World War II

Unemployment is expected to be 9.25% in December, a level not seen since September 1994

In the June quarter alone, GDP is said to have fallen by seven percent, equivalent to three years of growth

Source: Treasury Economic and Fiscal Update, July 23, 2020

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