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McDonald's Trims Menu Amidst Coronavirus Pandemic

mcdonalds march26 lt

McDonald's Corp said it plans to cut back on its menu at its U.S restaurants over the next few weeks in a bid to simplify operations in the kitchens and for the crew amid the ongoing coronavirus (COVID-19) outbreak.

The company will suspend its all-day breakfast menu, which will now be served only at breakfast time. These include items such as salads, grilled chicken sandwiches and chicken tenders. The introduction of the all-day breakfast menu had helped the fast-food giant turnaround in 2015.

The world's largest burger chain said it is working with its franchisees and local restaurants to focus on serving its most popular choices. Sticking to the most popular items will also ensure speedy takeaways.

The company is also considering deferring rent and service fees for its franchisees, who operate a majority of the company's restaurants in the US.

Earlier last week, the company had closed seated dining areas at company-owned restaurants in the U.S., including the use of self-service beverage bars and kiosks. It then shifted focus to serving customers through Drive-Thru, walk-in take-out and McDelivery only in support of the Government guidelines on social distancing. It also closed its PlayPlaces at US locations.

It introduced new Drive Thru and McDelivery procedures to minimize contact between employees, customers and couriers. Floor guides were provided to ensure customers coming to collect food and drinks keep a safe distance from one another.

In a regulatory filing on Wednesday, the company said the global pandemic resulting from the outbreak of the novel coronavirus has disrupted the McDonald's global restaurant operations beginning in early 2020.

McDonald's expects the COVID-19 pandemic to hurt its financial results and could be material based on its longevity and severity. It will provide an update during the first quarter 2020 earnings release and call.

Earlier in the week, McDonald's temporarily closed down all its restaurants in the U.K and Ireland after 7 pm on Monday, March 23, as the coronavirus pandemic continues to spread and worsen. The company operates about 1,360 restaurants in the UK and Ireland.

The company said it will continue to evaluate the situation and look to bring back the regular menu as soon as possible.

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