McDonald’s Investment in Chicken: Catering to Consumer Preferences

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McDonald’s, a global fast-food giant, has identified chicken as a critical focus area for its menu offerings in the United States. According to Joe Erlinger, president of McDonald’s USA, chicken consumption trends are shaping the company’s strategy. This shift aligns with broader consumer preferences for chicken over other animal- or plant-based proteins.

The Shift Towards Chicken

At the Wall Street Journal Global Food Forum in Chicago on June 26, Erlinger highlighted the growing consumer interest in chicken. Earlier this year, McDonald’s reported that its chicken revenue now matches its beef revenue. This trend reflects an increasing demand for chicken, which shows no signs of slowing down.

Historical Context

When McDonald’s first launched nationwide, its menu did not include chicken sandwiches. However, over time, chicken has become a significant part of its offerings. Erlinger pointed out that McDonald’s now sells more chicken than beef, a trend he expects to continue.

Reasons Behind the Chicken Trend

Several factors contribute to the rising demand for chicken:

1. **Environmental Concerns**: Chicken production generally has a lower environmental impact compared to beef, making it an attractive option for environmentally conscious consumers.

2. **Health Considerations**: Chicken is often perceived as a healthier alternative to red meat, appealing to health-conscious customers.

3. **Economic Factors**: The price of chicken can be more stable and affordable compared to other meats, making it a cost-effective option for both consumers and the company.

Erlinger emphasized that these factors collectively make chicken a “great option” for McDonald’s to focus on.

The Future of Plant-Based Options

During the same forum, Paul Shapiro, CEO of the Better Meat Co., asked Erlinger about the potential return of the McPlant, a plant-based burger that McDonald’s tested in 2021-22. Shapiro shared a personal anecdote about enjoying the McPlant with his wife on Valentine’s Day, hoping it might return to the menu.

McPlant’s Market Performance

Erlinger acknowledged that the McPlant was tested in two diverse markets, San Francisco and Dallas, but it did not perform well. He indicated that currently, the U.S. consumer is not seeking plant-based proteins from McDonald’s.

Despite this, McDonald’s USA will continue to monitor trends in alternative proteins. While the immediate return of the McPlant seems unlikely, the company remains open to exploring future possibilities.

Strategic Investments

McDonald’s commitment to aligning with consumer trends is evident in its strategic investments. The company is not only expanding its chicken offerings but also ensuring that these products meet the high standards expected by its customers. This proactive approach has been a hallmark of McDonald’s strategy, enabling it to adapt and thrive in a competitive market.

Menu Innovations

McDonald’s has introduced several chicken-based products over the years, such as the McChicken, Chicken McNuggets, and various regional specialties. These innovations cater to diverse tastes and preferences, reinforcing the company’s position as a leader in the fast-food industry.

Marketing Efforts

To support its focus on chicken, McDonald’s has also invested in marketing campaigns that highlight the quality and variety of its chicken products. These campaigns aim to attract new customers while retaining existing ones by emphasizing the benefits of choosing chicken.

 

Conclusion

McDonald’s USA is strategically investing in chicken to meet the growing consumer demand for this protein. The shift from beef to chicken aligns with environmental, health, and economic trends, positioning the company to serve its customers better. While plant-based options like the McPlant have not gained traction yet, McDonald’s remains vigilant in monitoring market trends to adapt its offerings accordingly.

By focusing on chicken, McDonald’s demonstrates its ability to pivot based on consumer preferences, ensuring its continued success in the fast-food industry. This commitment to understanding and meeting customer needs will likely keep McDonald’s at the forefront of the industry for years to come.

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