Apr 14, 2020
Case Study

Benchmark store performance for McDonald's

Almudena Sanz

McDonald’s Spain has over 500 stores, and collects millions of sales transaction data from them. The sales data is extremely useful to benchmark performance across stores. But before diving into the analysis, how to make sure we are comparing the same types of stores to make the analysis relevant?  

Using Graphext, we helped McDonald’s to categorize their stores based on their typical customer profiles. We started by plotted a map of all the McDonald’s stores across Spain using their location coordinates. Once this step is done, the system automatically groups stores with similar profiles by colour.

We all know that McDonald’s offers a diverse menu to meet the consumers´preferences, and this is well reflected on how people choose their food items across different regions.

The red cluster on the map shows stores along the coastal regions. If you look at these stores performance, they sell a lot of individual drinks, individual fries, and people go there for early dinner (they are probably tourists who are not yet used to the 9pm Spanish dinner time).

In comparison, looking at the orange cluster representing stores from Southern Spain, you can see they sell a lot more local menus and coffees (yes, McDonald’s offers croquetas and tortillas in Spain!). You can just imagine a local from the small town of Granada go to McDonald’s for a coffee and snack and enjoy an afternoon break.

After the store analysis, we also did a product basket analysis to see how products are being sold together. Finding out how products are associated with each other is very useful to create product bundles or design promotion strategy.

We know that McCafe is a very popular new product line from McDonald’s. Last time I went to a McCafe, I was impressed by the fancy pastries they offer, from croissants, cookies, to chocolate macarons. So we want to take a look at what are some of the most popular items sold together with a cappuccino.  We have already guessed orders of other coffees and croissants must be very popular, but surprisingly, we also found out Kit Kat chocolate bar goes well with cappuccino too! Next time when you go to McDonald’s, perhaps try the cappuccino and Kit Kat combo to see if you like it.

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