Description: McDonald’s uses about 120 million eggs each year in Canada and about 2 billion in the United States. The restaurant chain has announced that intends to shift its procurement to cage-free eggs, though it may take as long as ten years for the company to reach the goal. Cage-free eggs command a premium in the marketplace and Burger King has already pledged that it intends to move to this product source.
Date: September 9, 2015
1) Given that the cage free egg is sold at a premium, what might be some of the cost issues that McDonald’s managerial accountants will have to consider?
2) Are you a regular user of McDonald’s breakfast offerings? How does the move to cage free impact on your decision to buy breakfast at McDonald’s?
3) What are some of the supply chain management issues that might emerge as both McDonald’s and Burger King move to these cage-free eggs?