McDonald's introduces new inventory/menu management
At McDonald's, inventory is being built up at full capacity to ensure that supplies cover at least the next 10 days.
Frozen-product stocks will last for 10 to 14 days at all branches of the fast-food chain.
Hester Chew, chief executive and chairman of the executive committee of McThai, the local franchisee of McDonald’s, said the build-up was the company’s response to the disastrous floods that had disrupted the supply chain and caused the closure of 14 branches to date.
“Although we have to make some adjustments to our plans, it’s important to keep our doors open,” he said yesterday.
He said McThai had also activated remote distribution centres and contingency warehouses on Rama II Road, the Bangkok-Chon Buri motorway, Chon Buri, and in Chiang Mai for frozen and dry goods.
It has sought substitute ingredients in case major suppliers, especially those making bread and frozen foods at factories in Bang Phli and Lat Krabang, are damaged by the flood waters.
The CEO added that the standby plans also included the launch of a “Simple Burger Menu”, should there be a raw-material shortage. Last Friday, a Teriyaki Rice with Chicken Strips dish was introduced to minimise the strain on buns supply.
Inventory and menu management aside, the chain has to take care of its employees, he said. All staff members have been told to put the interests of themselves and their families before the business.
So far, 143 workers have been enlisted for assistance worth Bt3,000 to Bt5,000 each. Though some branches have had to close, all permanent staff are being paid in full, while part-timers are getting 50 per cent of their average income over the past three months.
“Workers whose homes have been hit by the floods can also apply for interest-free loans of up to three times their basic salary, payable in 12 equal monthly amounts,” Chew said.
McThai employs about 6,000 people, of whom 70 per cent are part-time staff, and achieved 30-per-cent sales growth year on year in the first 10 months of 2011.
The severe floods have forced the company to partially or fully close 24 delivery service hubs, but to date it is not changing the plan to open between 17 and 20 new restaurants next year, Chew said.
As well, to help flood-affected clients, McThai and CAT Telecom are offering free Wi-Fi service at McDonald’s branches for the whole of this month.
“We are committed to keeping open McDonald’s restaurants throughout Bangkok and the suburbs to serve the public. We will do our utmost to continue serving the public any time and anywhere we possibly can,” he added.
