Fresh meat is helping McDonald's sell more hamburgers and gain market share.
Last year, the hamburger
chain switched to fresh quarter-pound meat
burgers, instead of frozen, in most of its stores
in the continental United States -
that is the 48 US states. Located in southern Canada, in addition to the
capital, Washington.
That
change has led to a 30% increase in quarter-pound sales on
average over the past 12 months, the company said Monday. It also helped
McDonald's burgers gain market share in what the industry calls the
"casual dining out" category for the first time in five years, the
company said.
McDonald's
made the switch to appeal to consumers' growing interest in the transparency of
ingredients. Today's buyers want to know where their food comes from,
Marion Gross, director of the company's supply chain for North America, told
CNN Business.
"Our
customers are changing at a super-fast rate," he said. "As a
result, we have also had to change." The company is also committed to reducing
the use of antibiotics in its meat and switching to "eggs
without a cage".
McDonald's
said sales of the new quarter-pound burger were especially strong in May 2018,
when it was first introduced, thanks in part to marketing efforts. More
recently, the company included the fresh meat burger in its bid of two for $ 5
for the first time. The promotion performed well, the company's chief
financial officer, Kevin Ozan, said in a call from analysts analyzing
first-quarter earnings.
Moving
from frozen meat to fresh meat was a challenge.
"There
was a huge transformation that was necessary" to make the change, Gross
said. Suppliers needed new packaging equipment and more refrigerators,
among other things, to make sure fresh meat was handled safely, he said. Distribution
trucks needed the right temperature control systems to transport the meat
properly. And in McDonald's kitchens, employees had to implement new food
safety practices.
In
general, the change was one of the "biggest and boldest moves we've done
in a long time," Gross said. It's the biggest change in the supply
chain the company has made since it began serving breakfast all day in 2015, he
noted.
He
also pressured the company's franchises, who had to pay for some of the
changes, such as different refrigeration and storage systems.
Last
year, the company had some friction with its franchises. In
October, the National Owners Association, a self-funded McDonald's franchise
defense group, met for the first time to discuss ways to work with McDonald's
to improve sustainability.
The company's aggressive remodeling plan, which
includes the modernization of stores with digital menu boards and self-ordered
kiosks have put pressure on franchisees, who also have problems when McDonald's
adds new items to the menu or makes other changes. Important Gross
noted that the change was not "easy", but that the franchisees
finally got on board because the fresh meat burgers are better. "The
franchisees became believers very quickly," he said.
McDonald's
shared the news of the improved sales of fresh meat, because of it
answers questions about whether to introduce an herbal protein burger on its US
menu.
Several
fast food chains, including Burger King, have added non-meat items to the menu
as consumers show interest in the product. McDonald's has a vegan
burger in Europe.
0 Comments