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.
Source: Globeandmail.com
Date: September 9, 2015
Discussion Points:
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?
Mcdonald Bkfast fan
Congrat to McDonald’s mgnt and the Managerial Accountant whom would be caged during the conversion from battery to free caged egg concept. Huge starter, promo, education costs!!!
Managerial accountants always never get proper wages or bonuses compare to Marketing managers however they must crunch the numbers as such so the Marketing manager can put a reasonable price of breakfast deal smile back on students, seniors, or single-mom-income typical breakfast buyers.
Me, do not typical care how stressful the hen laying eggs in cage free or 1-square-foot-cage; then these eggs make to a breakfast burritos.
I wish McDonalds doing more quality check of their current products ( Bkf hash-brown has a terrible taste) before moving on to something which are so costly to change and the change is not significantly noticed by consumers.