Out of Crisis, a New Day Dawns for McDonald’s

On the way (picture above in the story): McDonald’s is working on a smaller restaurant footprint that is solely focused on efficiency, offering drive-through, take-away, and delivery with limited or no seating. This was a common goal for the greatest players in space. Taco Bell, Wendy’s, and Burger King have discontinued versions of a drive-through-only setup in the past few months.

“The customer’s desire for convenience, speed and lightness is growing all the time, and we are ready for it. We are taking steps to accelerate our phenomenal drive-through advantage, ”said Mason Smoot, SVP and Chief Restaurant Officer. “… We know better than anyone what drive-through customers are interested in. It starts with the speed of the service. “

BTIG analyst Peter Saleh wrote in a note Tuesday that McDonald’s will continue to invest in its digital and technology platforms. Spending totaled $ billion annually, with $ 600 million from the company. “Improved accessibility and throughput will be a focus as the concept tests additional pickup windows, drive-through express lanes and an off-site restaurant format,” he said. “In the long term, we expect drive-through improvements such as automated voice ordering, which uses the investment in Apprente, and an optimized payment process via the McDonald’s app or the loyalty program, will lead to higher throughput.”

For the other D-delivery, McDonald’s said nearly 75 percent of the population in its top markets live within 3 miles of a McDonald’s (a statistic that was previously touted). In the past three years, McDonald’s has increased the number of restaurants offering delivery nine-fold to around 28,000 locations. Building on the range, McDonald’s plans to transfer delivery to its app, which is available in “multiple markets,” and optimize operations with a focus on speed and accuracy.

“This is the beginning of something new for McDonald’s,” said CEO Chris Kempczinski. “This is a moment where we are proud of what we will do to write the next chapter in McDonald’s growth and how we will do it. This is a moment when we share a new growth strategy for our future while formulating a clear vision of where we will make a difference for a world that needs community and connection. “

The brand moved to the “C” on McDonald’s transformation agenda, saying it will meet customer demand for familiarity. This is something that Kempczinski drew attention to very early on in the pandemic – the idea of ​​diners looking for restaurants they trust in untrustworthy times. And this loyalty has post-pandemic consequences. Do customers remember the restaurants that looked after them during COVID? McDonald’s is betting on it.

The brand will primarily focus on chicken and beef. For the former, it is planned to offer new line extensions to take advantage of Chicken McNuggets and McChicken. A new crispy chicken sandwich is coming to the US next year.

McDonald’s said there will be a crispy chicken fillet topped with crinkle cut cucumber and butter and served on a toasted potato roll. A spicy version also appears bankable, as the company stated, “We’ll continue to add spice and flavor to our classic chicken offerings.” It referred to the McSpicy sandwich that was introduced to markets outside of the United States. McDonald’s also operated Spicy McNuggets domestically (and in the UK) earlier this year.

With respect to beef, McDonald’s promised changes in operations, processes and formulation to add more flavor, such as: B. the use of new, golden brown toasted rolls and improved grilling. This includes sautéing in smaller batches and grilling onions on burgers – changes introduced in Australia and Canada in 2019.

Basically, the model will focus on focusing on things that matter most to guests, but innovating in a way that flutes the classics. Unlike new item launches that require significant marketing and awareness campaigns, McDonald’s will bring the most frequently ordered products to market in new ways.

The brand went viral on Monday due to another offering – the McPlant. McDonald’s tested a plant-based burger at select Canadian restaurants last year and said the findings fueled future pilots expected in 2021.

This could be a line, not just a product. McDonald’s said burgers, chicken sandwiches, and breakfast items could be coming down the street.

It wasn’t clear who the supplier would be, although Beyond Meat and McDonald’s co-created the plant-based patty, Beyond Meat said.

McDonald’s final stage of Accelerating the Arches is purpose based. The chain said it will invest in new, culturally relevant approaches to communicating McDonald’s history.

It is planned to highlight four areas: sourcing high quality ingredients; Promote climate protection; Connection to communities in times of need; and increased focus on equity by providing opportunities for employees.

McDonald’s said this will manifest itself through support from the farming community. Procure 100 percent of guest packaging from renewable, recycled or certified sources by 2025; Donating millions of pounds of food from the supply chain and restaurants in 2020; and removing barriers to employment for more than 2 million people worldwide.

McDonald’s targeted path is publicly presented with the “Serving Here” campaign. McDonald’s goes through various vignettes of American life, from families to communities to individuals, to show how people (and McDonald’s) make a difference. Another spot, “Everything Changes,” follows a family’s journey through teething troubles and focuses on how Ronald McDonald House helps charities. “Doors” explores a day in the life of farmer Josh Bunger. The last one, “Good Neighbors”, is about “what makes someone a good neighbor”.

“Customers today want to know which brands they love, share their values ​​and serve as a force for good in the world,” said Alistair Macrow, who was named global CMO in June. “To gain their trust, you have to act first and then communicate. We grow our marketing ambitions by telling clearer and more effective stories about the impact we are having in the communities we operate in and, more generally, what we stand for as a brand. “

“We want to move beyond branding to branding. When the people at McDonald’s are comfortable, they invite others to join them,” he added.

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