By Julie Jargon 

McDonald's Corp. could start offering all-day breakfast nationwide in October, just months after it began testing the idea, according to a memo sent to U.S. franchisees and employees on Tuesday.

Customers for years have been asking McDonald's to serve its McMuffins and pancakes beyond the late-morning cutoff of around 10:30 a.m., but the company held off because of the operational challenge to prepare breakfast items alongside hamburgers and chicken nuggets.

The company in March began adding food-preparation space to restaurants in San Diego, and later in Nashville, to accommodate all-day breakfast. The tests have been encouraging, according to Tuesday's memo, which was reviewed by The Wall Street Journal. The memo, sent from LeAnn Richards, a Tucson, Ariz., franchisee who heads a task force studying all-day breakfast, said franchisees need to be ready for the potential launch of all-day breakfast as soon as October.

"Serving all-day breakfast is likely the number one request we hear from McDonald's customers," McDonald's said in a statement. "We're testing it out in a few markets to learn more about this possibility," it said, but "there's no news on this yet."

McDonald's already has been struggling with the complexity of its kitchen operations, after adding numerous menu items over the years, from fruit smoothies to oatmeal, that have resulted in slower service and customer complaints about incorrect orders. In recent months, the chain has added options for people to customize their burgers with different toppings and buns.

If McDonald's can overcome the complexity issues that come with offering all-day breakfast, it could provide a meaningful boost to sales and a coup for new Chief Executive Steve Easterbrook. He has been pushing change to revive declining sales at the fast-food company. He has announced plans to remove antibiotics from chicken, simplify the drive-through menu and offer products priced between the dollar menu and premium sandwiches. McDonald's reports second-quarter earnings on Thursday.

Mr. Easterbrook must get franchisees on board with changes that require added cost. After years of remodeling and building new restaurants, many franchisees have ended up in debt. A recent survey revealed that relations between franchisees and the company are at the lowest level in more than a decade.

Before all-day breakfast can become a reality, various franchisee committees have to approve it. Franchisees need to place equipment orders by mid-August and decide by then whether they want their new menu boards to feature biscuits or muffins for the breakfast sandwiches, according to the memo.

"We want to make it clear that we are not being presumptive that this will launch, but we want to make sure the system is ready to turn quickly and launch all day breakfast should all of you believe and support that direction," Ms. Richards stated in the memo, which said it was also on behalf of Charlie Strong, president of McDonald's U.S. central zone.

Initial votes from franchisee leadership groups will be held Aug. 14, and all franchisees will be given a chance to vote after that, at a time not specified in the memo.

Write to Julie Jargon at julie.jargon@wsj.com

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