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Tag: McDonald

  • McDonald’s launches new growth strategy; beats profit estimates

    McDonald’s launches new growth strategy; beats profit estimates

    It will also debut a “McPlant” line of plant-based menu items, though it declined to say which suppliers it would use for faux burger, faux chicken and breakfast items. It previously tested a vegan “P.L.T.” burger by Beyond Meat in Canada.

    The world’s biggest burger chain beat revenue and profit estimates for the third quarter on Monday as customers in the United States ordered more hamburgers and fries in drive-through outlets and on delivery apps to avoid dining out during the pandemic.

    Overall, global sales fell 2.2% in the quarter, an improvement over the previous quarter’s drop, as McDonald’s had already announced in an October update.

    The company’s limited-time promotional deal with rapper Travis Scott, which caused shortages of some ingredients, and other marketing investments also helped sales bounce back from pandemic lows.

    Through 2022, the chain plans to spend about $2.3 billion (£1.7 billion) on capital expenditure, about half of which will build new stores, with some of the rest used for remodels stalled by the pandemic.

    Next year, McDonald’s will focus on core products such as burgers, coffee and chicken, including a new Crispy Chicken Sandwich – something some franchisees have long sought in order to compete with the success of similar products at Popeyes, a unit of Restaurant Brands International and Chick-fil-A.

    It will also redesign its packaging globally. And soon, it will launch another growth driver that other chains have long had — a loyalty program.

    “MyMcDonald’s” digital program will allow customers who sign up to get tailored offers, the company said. A loyalty rewards program using the MyMcDonald’s program will start as a pilot in the coming weeks in Phoenix and next year across the United States.

    Finally, it will build some locations without any dining rooms to focus on carryout, drive-through and delivery only.

    Despite some sales recovery and better-than-forecast margins, the company is still pressured in key markets outside the United States, including France, Germany and Britain by new lockdown restrictions due to a spike in coronavirus cases.

    McDonald’s total revenue fell about 2% to $5.42 billion in the three months ended Sept. 30, largely recovering from the over 30% plunge posted in the second quarter.

    Analysts on average had estimated revenue of $5.40 billion, according to IBES data from Refinitiv.

    Net income surged 10% to $1.76 billion, helped by gains from the sale of a part of McDonald’s stake in its Japanese affiliate.

    Excluding those gains, the company earned $2.22 per share, beating estimates of $1.90.

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  • McDonald’s US starting up innovating cup-reusing system with Terracycle

    McDonald’s US starting up innovating cup-reusing system with Terracycle

    McDonald’s is to launch a reusable cup option for hot beverages with TerraCycle’s circular packaging service Loop. At first, the service will be trialed in the US before being introduced in other markets.

    In the program, customers will get the durable cup for a small deposit, which can be redeemed by returning the cup to participating McDonald’s restaurants. The Loop system, in partnership with Ecolab, will sanitize the cup for the next use.

    “We’re on a journey to rethink how we package products to give customers options that reduce waste, maintain the highest safety standards, and enhance the McDonald’s experience they expect and enjoy,” said Jenny McColloch, vice president global sustainability at McDonald’s.

    “This pilot will generate important local insights and lessons to share along the way. We will accelerate circular-packaging solutions with our partners around the globe,” McColloch said.

    McDonald’s will pilot the campaign at select McDonald’s restaurants in the UK next year. McDonald’s has invested in several packing initiatives across the world, including the Recup system in Germany and NextGen Cup Challenge in the US.

    “The partnership paves the way for reusables to become an accessible option for consumers as they enjoy their meal on the go.” said Tom Szaky, CEO at TerraCycle and Loop.

    As yet, no images of the new device have been released, and it is not clear what it will be constructed of. Nor is it clear if the cups will be washed in stores or returned to a central hub.

  • McDonald’s makes swimwear from plastic straws

    McDonald’s makes swimwear from plastic straws

    McDonald’s has introduced a swimwear range made from plastic straws in Austria – and collaborated on a ‘saucy’ range of shoes with Adidas in India.

    The swimwear initiative started out as a solution to the problem of what to do with the waste plastic after McDonald’s Austria replaced all plastic straws in its restaurants and shake cups with recyclable paper.

    “We are pleased that this Austria-made, Europe-made and globally unique sustainability collection made from recycled material in our classic straw design accompanies us into a unique summer,” explained Benedikt Böcker, marketing director at McDonald’s Austria.

    Designed by Viennese label Poleit in collaboration with Studio Furore, the McDonald’s swimwear line consists of a swimsuit and a swim short, featuring the brand’s signature colors yellow and red.

    According to the company, the collection is made from certified seaqual fibre and plastic straws to ensure the swimwear quality – quick-drying and pleasant.

    “Implementing an upcycling project from the iconic ‘Mäcci straws’ McDonald’s straws and accompanying McDonald’s in another major step in plastic reduction was a very special order for us,” said Marie Pierer von Poleit.

    The McDonald’s sustainability strategy will reduce more than 90 tons of plastic annually, according to Nikolaus Piza, MD of McDonald’s Austria

    Getting saucy in India

    Meanwhile, McDonald’s has teamed with sportswear label Adidas to launch the ‘Sauce Pack’ sneaker collection in India. The collection’s design was inspired by famous basketball players’ playing style and McDonald’s sauce packaging.

    The Sauce Pack collection has four sneaker models – Harden Vol.4, Dame 6,  T-Mac 1, and D Rose 10. Those models were named after four basketball players, James Harden, Damian Lillard, Tracy McGrady, and D-Rose.

  • McDonald’s sales figures show marked improvement as Covid-19 lockdowns eased

    McDonald’s sales figures show marked improvement as Covid-19 lockdowns eased

    Newly released McDonald’s sales figures have shown a marked global improvement for the business sequentially from late March through May despite the continuing impact of the coronavirus pandemic.

    The information released ahead of the firm’s second-quarter earnings announcement, showed sales steadily improving throughout the period however they still remain negative compared to last year’s figures.

    Comparable McDonald’s sales figures across international markets for both April and May were heavily impacted by temporary restaurant closures in the UK and France, and to a lesser extent Italy and Spain. The firm saw strong drive-thru performance in Australia, and negative comparable sales in Germany, Canada and Russia.

    Sales in international licensed markets were primarily impacted by temporary restaurant closures across nearly all regions, most notably in Latin America. The results reflected continued negative comparable sales in China and positive comparable sales in Japan.

    The vast majority of markets are operating with drive-thru and delivery with limited menus and hours.

    A breakdown of figures for international licensed markets was not provided by the firm.

    “Our strong foundation and the unique advantages of the McDonald’s System, including a high percentage of drive-thru restaurants and investments in delivery and digital, have enabled us to adapt to the changing landscape presented by the Covid-19 outbreak,” said McDonald’s president and CEO Chris Kempczinski.

    “The steps we are taking in response to the pandemic and to accelerate recovery while continuing to serve the great and familiar taste of a meal from McDonald’s, will position us well for the next phase of this crisis.”

    The report shows 95 percent of McDonald’s restaurants around the world are currently open to serve customers.

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  • McDonald’s sales rise in South Korea

    McDonald’s sales rise in South Korea

    Fast-food chain McDonald’s sales grew 9 percent in South Korea during the first four months of this year, in spite of the impact of the coronavirus pandemic.

    The firm’s MD Antoni Martinez made the announcement on McDonald’s Koreas’ Youtube channel, his first public address since his appointment in February.

    “With the Covid-19 pandemic posing serious challenges for the business, contactless platforms such as drive-thru and McDelivery in which McDonald’s made preemptive investments, have received a warm response from the public,” said Martinez.

    He said McDonald’s sales were boosted by the introduction of the Best Burger initiative and the establishment of convenient platforms.

    The Best Burger initiative refers to a change in McDonald’s entire burger preparation process, which was implemented in the territory in March. Korea is the fourth country to introduce the initiative, following New Zealand, Australia and Canada.

    McDonald’s Korea served around 400,000 customers every day last year at around 400 stores nationwide.

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  • McDonald’s, The Cheesecake Factory find the perfect recipe for staying relevant during crisis

    McDonald’s, The Cheesecake Factory find the perfect recipe for staying relevant during crisis

    With customers subjected to stay-at-home orders or lockdowns around the world, major brands are facing unprecedented challenges staying relevant and connected – especially fast-food retailers and theme parks.

    At the same time, the lockdowns have spurred an unprecedented demand for baking ingredients as consumers try their hand at creating food and snacks at home – either to kill time or save money.

    At least four international corporate giants have linked these two features of the Covid-19 pandemic into feel-good marketing initiatives that help consumers, subtly reinforce brand ‘feel-good factors’ and drive traffic to their social media accounts. McDonald’s, Disney, The Cheesecake Factory and hotel chain DoubleTree have each shared recipes for foods they serve to customers so they can make them at home.

    Fast-food giant McDonald’s in the UK, which closed all of its restaurants last month, released a recipe for its Sausage and Egg McMuffin for fans to recreate in their own kitchens. This was in response to viral tweets from internet users who had tried to make their own McMuffin breakfast sandwiches while unable to visit restaurants.

    The chain produced a recipe card (below) revealing the five ingredients and full cooking instructions in order to promote its brand while outlets are closed – and included a step-by-step guide on how to prepare its crispy hash browns.

    In the US, hotel chain DoubleTree has released the recipe for the popular chocolate chip cookies presented to travelers fresh from the oven upon arrival at the firm’s properties. More than 30 million of the cookies are baked and shared with customers each year, and the cookie carries the distinction of being the first food baked in orbit at the International Space Station.

    “We know this is an anxious time for everyone,” said DoubleTree by Hilton senior VP and global head Shawn McAteer. “A warm chocolate chip cookie can’t solve everything, but it can bring a moment of comfort and happiness … we look forward to welcoming all our guests with a warm DoubleTree cookie when travel resumes.”

    Disney Parks – the theme park division of the giant Disney entertainment empire – has similarly released a recipe inspired by the churro snacks available at all its parks worldwide, most of which are closed during the pandemic.

    “These past few weeks, we’ve seen many of you sharing Disney recipes and creating your very own magical moments right at home,” wrote Alex Dunlap, food & beverage communications coordinator at Disney Parks in a blog post for fans. “This has inspired us to share one of my favorite recipes so you can continue creating #DisneyMagicMoments.”

    The company also shared on a blog how to make the grilled three-cheese sandwich offered at Woody’s Lunch Box at Toy Story Land in Disney World, on the occasion of National Grilled Cheese Day.

    Restaurants and bakeries are joining the trend as well. US casual-dining chain The Cheesecake Factory has published recipes online for many of its dishes, including its lemon-ricotta pancakes, Tuscan chicken, (pictured above), almond-crusted salmon salad, California guacamole salad, and chicken Bellagio.

    Other chains to post recipes online include Pret-A-Manger in the UK and US bakery Panera Bread.

    Meanwhile, The Hustle is reporting how one US bakery supplying restaurants pivoted into creating home-baking kits for consumers, in order to keep its factory operating and staff employed.

    Aaron Caddel was forced to close his San Francisco and Los Angeles bakeries Mr. Holmes Bakehouse after all 60 of his wholesale customers canceled their orders within 72 hours, equivalent to about $3 million of business.

    “I had single mothers on staff begging me to keep their jobs,” he told The Hustle. “So I just had to turn to solution mode: How can I create an insurance policy against this economy?”

    His solution was to create an all-inclusive kit including yeast, flour and detailed instructions to help consumers bake their own Mr. Holmes loaves. He had no e-commerce experience, but he did have 121,000 followers on his Instagram account.

    “Caddel is one of many small business owners recalibrating to serve a rapidly growing class of housebound bakers,” wrote Zachary Crockett, senior writer at The Hustle. You can read his full feature here.

    The demand for information about baking at home has surged since lockdown orders were put in place. One overseas columnist described flour as “the new toilet paper” in terms of consumer demand, with stocks running low in supermarkets as demand outstripped usual supply volumes.

    This chart below shows the rate of Google searches for bread-making instructions since stay-at-home orders were put in place in parts of the US last month.

    It seems some global brands have found the perfect recipe to delight consumers they would otherwise have had little opportunity to connect with during the coronavirus pandemic…

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  • McDonald’s Singapore shuts all stores

    McDonald’s Singapore shuts all stores

    McDonald’s Singapore has temporarily closed all its restaurants as preventative action during the island’s “circuit breaker” period.

    According to a company statement, McDonald’s Singapore is suspending its restaurant operations, including drive-through and delivery service, until May 4.

    “These are indeed unprecedented times for all of us,” said Kenneth Chan, MD of McDonald’s Singapore. “With the safety of all our customers and employees as top priority, we will do all we can to help Singapore flatten the curve.”

    The company has confirmed staff will be paid as usual during the period of closure.

    The move came on Saturday, a day after the company suspended its takeaways service.

    McDonald’s Singapore had previously closed its store at Changi Airport Terminal 3 and its drive-thru outlet at a Shell petrol kiosk on Tampines Ave 2, after employees tested positive for Covid-19 at each location, taking the number of infected McDonald’s Singapore staff to seven since the coronavirus outbreak first occurred.

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  • McDonald’s scented candles top new merchandise range

    McDonald’s scented candles top new merchandise range

    McDonald’s scented candles are among a range of new merchandise items released by the fast-food giant in the US.

    According to the firm’s website, the merchandise is now on sale for a limited time to celebrate the brand’s Quarter Pounder burger – which will soon turn 50 – and coincide with the opening of a fan club dedicated to the menu item.

    The items, including a fan club t-shirt, a 2020 calendar and a collection of McDonald’s scented candles which share the same beef-and-burger smell of a Quarter Pounder.  The items are being sold on a dedicated website goldenarchesunlimited.com.

    Another new product is Couples Quarter Pounder Mittens “to hold hands and hold a hot and deliciously juicy Quarter Pounder cooked just for you right when you order”

    The firm says it will unveil a “sizable bronze monument” of the Quarter Pounder on Wednesday, in a US city yet to be revealed.

  • Ford And McDonald’s Collaborate To Convert Coffee Bean Skin Into Car Parts

    Ford And McDonald’s Collaborate To Convert Coffee Bean Skin Into Car Parts

    Ford Motor and McDonald’s USA have collaborated to convert coffee bean skins to vehicle parts such as headlamp housing. We all know that the dried skin (chaff) of the bean comes off during the roasting process and it’s this skin that Ford will use to reinforce certain vehicle parts. The company found that chaff can be converted into a durable material. By heating the chaff to high temperatures under low oxygen, mixing it with plastic and other additives and turning it into pellets, the material can be formed into various shapes.

    By heating the chaff to high temperatures under low oxygen and mixing it with plastic and other additives it turns to pellets.

    The chaff composite meets the quality specifications for parts like headlamp housings and other interior and under hood components. According to Ford, the resulting components will be about 20 percent lighter and require up to 25 percent less energy during the molding process. Heat properties of the chaff component are significantly better than the currently used material, says the company.

    McDonald’s is expected to direct a significant portion of its coffee chaff in North America to Ford to be incorporated into vehicle parts. The project also involves Varroc Lighting Systems, which supplies the headlamps, and Competitive Green Technologies, the processor of the coffee chaff.

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  • McDonald’s Singapore launches limited-edition Hello Kitty carrier

    McDonald’s Singapore launches limited-edition Hello Kitty carrier

    McDonald’s has chosen Singapore as the first country in the world to launch its Hello Kitty carrier.

    The limited-edition Hello Kitty carrier is designed for drinks and fries. An adjustable strap allows carrying by hand or hanging from a car headrest.

    With the purchase of any Extra Value Meal and Doubles Feast, customers can buy up to two Hello Kitty items at SG$7.90 each (US$5.79).

    The limited-edition Hello Kitty carrier is available at McDonald’s Singapore outlets, except Tampines Shell, Hougang Shell and Tampines Kiosk.

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  • McDonald’s Singapore sleepwear deal crashes app

    McDonald’s Singapore sleepwear deal crashes app

    A deal by McDonald’s Singapore offering free sleepwear along with McNuggets and McWings delivery orders crashed the brand’s delivery app and site within an hour, angering customers.

    The deal went live on Monday October at 6pm, offering a set of limited-edition free-sized men’s or women’s pajamas with a bonus sleeping mask for customers who entered a promo code.

    Online commentators blamed McDonald’s for being insufficiently prepared for the surge in traffic, with some suspecting the firm had deliberately taken down the site rather than admit the sleepwear was out of stock.

    Fans are getting a second chance to purchase the limited edition loungewear later today.

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  • McDonald’s China Teams up loyalty program with Ele.me app

    McDonald’s China Teams up loyalty program with Ele.me app

    McDonald’s customers in China can now earn loyalty points when they order a Big Mac or Filet-o-Fish through Ele.me, Alibaba Group’s on-demand delivery platform.

    Ele.me users can activate a McDonald’s membership card with just one click on the app to earn loyalty points for purchases and receive vouchers worth up to RMB 88.5 (US$12.80). The fast-food giant attracted nearly 20,000 new members on its first day of launching the service on May 20, while single-day orders increased about 20 per cent week-on-week, McDonald’s China said.

    McDonald’s China is one of the first restaurant chains to pilot the new Ele.me service, one of the app’s latest tools to help the food-and-beverage sector seamlessly connect their online and offline operations.

    “McDonald’s is an important strategic partner for us, and we are thrilled to fully integrate their loyalty program with our platform. We look forward to continuing to work together to improve the delivery experience for consumers and provide even more services, benefits and perks,” said Hu Xiaoyu, VP of Ele.me.

    There are more than 3100 McDonald’s restaurants in Mainland China, more than 2000 of which also have a virtual presence on Ele.me. McDonald’s China launched its membership program last year, rewarding members for purchases made in-store or via its app and mini-program. It now counts more than 75 million members.

    “Integrating our loyalty program with Ele.me helps us provide more customers with a complete set of membership services and benefits, which ultimately enhances the delivery experience,” said Emily Pang, head of brand extension at McDonald’s China.

    Also among the first batch of global restaurant chains to bring their membership program to Ele.me are Burger King, Dairy Queen and Papa Johns, all of which reported higher sales in the 30 days that followed their launch. Burger King was the first to opt in last November, and has since attracted 2 million new members, with members contributing to nearly 40 percent of its gross merchandise volume on Ele.me.

    Ele.me plans to roll out even more features, such as birthday perks and member-only sales campaigns, to “bring more value to every purchase,” Hu said.

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  • McDonald’s Philippines Planning 50 Restaurant Openings

    McDonald’s Philippines Planning 50 Restaurant Openings

    McDonald’s Philippines is expanding, with new stores and branch upgrades unfolding this year along with menu additions.

    There are currently around 650 McDonald’s restaurants in the territory, 61 of which opened last year.

    “We’re continuing our aggressive expansion,” said McDonald’s MD Margot Torres. “In terms of new stores, we’re looking at about 50.”

    The firm’s outlets will be upgraded to the McDonald’s Nxtgen system, featuring a touch-screen service allowing customers to place orders without interacting with a cashier. The Nxtgen kiosks also allow customers to customize their orders and access additional offerings.

    An estimated 70 per cent of stores are expected to receive the upgrade by 2021

  • McDonald’s ends food fight in India

    McDonald’s ends food fight in India

    International fast food chain McDonald’s has bought out its former partner Vikram Bakshi’s 50 percent stake in its Indian operations, ending a six-year dispute.

    The disagreement arose when McDonald’s India attempted to oust Bakshi as MD of local operator CPRL in 2013, a decision that was overturned after local arbitration hearings ruled in favor of his reinstatement.

    “With the transfer of ownership and management today, Mr. and Mrs. Bakshi end their association with CPRL and McDonald’s,” the company said in a statement. “McDonald’s acknowledges the significant work and contribution of Mr. Bakshi in establishing McDonald’s restaurants in North and East India.”

    Bakshi was responsible for opening the first McDonald’s in the territory in the mid-90s, growing the franchise to more than 160 outlets in northern and eastern India.

    McDonald’s now wholly owns CPRL, which will be headed by Robert Hunghanfoo going forward. The financial details of the transaction were not disclosed.

    The firm is now seeking a new development licensee for the region.

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  • McDonald’s looks to create pipeline of property talent

    McDonald’s looks to create pipeline of property talent

    With $500 million to be spent on new restaurants and refurbishments over the next three years, McDonald’s Australia has established a new property graduate program to create a pipeline of future property leaders within the organisation.

    The fast food chain recently announced the names of the program’s first successful applicants, and it is currently accepting applications for the 2020 intake. Applications close on Sunday, May 12.

    The two-year program provides training in relevant fields, including real estate, construction, design and asset management, and hands-on guidance from experienced mentors in McDonald’s national development team, which maintains a portfolio of over 980 restaurants across Australia.

    Tom Veale, development director of the southern region at McDonald’s Australia, told Inside Retail the program is an important part of the fast food chain’s commitment to new restaurant growth.

    “McDonald’s is committed to new restaurant growth and we wanted to create an opportunity for young talent to come in and grow with our business, developing future property leaders,” he said.

    At a time when many retail and hospitality businesses are looking to “right-size” their store footprints, talented property leaders may very well be a competitive advantage.

    “McDonald’s prides itself on developing and promoting talent and we have so many great people in the system to learn from to give graduates a great kick start to their career,” Veale said.

    “Training graduates allows us to set up a strong pipeline for future success, creating the business leaders of tomorrow.”

    Besides its new property graduate program, McDonald’s Australia also offers a Diploma qualification through its management development program and Certificate II and III in Retail Services.

    “Macca’s is a starting point into the work force for so many young people and, in many instances, turns into a long-term career,” Lisa Althorpe, director of people and culture at McDonald’s Australia, said.

    “Our aim is to set youngsters up with skills for life and a great foundation that gives them the opportunity to build a great career, whether that’s with McDonald’s or externally.”

    Participants in the property graduate program will have the opportunity to continue in a permanent role within McDonald’s Australia upon completion.

    McDonald’s Australia was recently highlighted as a standout performer in the company’s announcement of its Q1 earnings. McDonald’s CEO Steve Easterbrook reported a 5.4 per cent increase in the company’s global comparable sales, and US$4.96 billion (A$7.09 billion) in revenue.

    This reflected the global company’s 15th consecutive quarter of comparable sales growth, but it was 20th consecutive quarter of comparable sales growth for McDonald’s Australia, Easterbrook pointed out.

    He attributed the business’s success to its pioneering initiatives, such as McCafe, which was born in Melbourne in 1993 and is now available in countries all around the world, and delivery via Uber Eats.

    A spokesperson for McDonald’s Australia told Inside Retail the focus has always been on running great restaurants and providing customers with the best possible dining experience.

    “We do this by getting the basics right and innovating in ways our customers want, including through delivery and digital,” the spokesperson said.

    “We’re a customer-driven business; everything – from the food we serve, to the design and facilities in our restaurants – is in response to their needs and is focused on providing the best possible dining experience.

    “We will continue to expand our delivery and digital offerings, as well as grow by investing approximately $500 million in new restaurants and refurbishments over the next three years.”

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