Last year, the burgers chain switched to fresh beef burgers frozen in most stores in the neighboring US. This change resulted in a 30% increase in quarterly sales on average over the past 12 months, the company said. He also helped [burgers] to gain market share in what the industry calls the "informal food out" category for the first time in five years, the company said.
McDonald's made the change to suit the increasing interest of consumers in the transparency of ingredients. Buyers today want to know where their food comes from, said Marion Gross, chief supply chain officer for North America.
McDonald's says sales of the quarter-pound fresh burger are particularly strong in May 201
8 when it was first introduced, thanks in part to marketing efforts. More recently, the company included the fresh beef burger in its $ 2 deal for the first time. The promotion performed well, Kevin Ozan said in an analyst's statement, discussing first quarter earnings. The transition from frozen to fresh beef was a challenge. "There was a huge transformation that was needed," Gross said. Suppliers needed new packaging equipment and more refrigerators, among other things, to make sure that fresh beef was processed safely, she said. Distribution trucks needed the right temperature control systems to transport the beef correctly. In McDonald's kitchens, employees had to introduce new food safety practices. Overall, the change was one of the "biggest, boldest moves we've ever done for a long time," Gross said. This is the biggest change in the supply chain that has been made by the company since it began serving a full-bodied breakfast in 2015, she said.
He also charges the franchisees of the company, who had to pay for some of the changes, such as different cooling and storage systems.
] Last year, the company faced some friction with its franchisees. In October, the National Owners' Association, a self-funded advocacy group for McDonald's franchisees, met for the first time to discuss ways to work with McDonald's to improve their livelihood. The company's aggressive remodeling plan, which includes upgrading stores with digital menus and self-service displays, has put pressure on franchisees who also struggle when McDonald's adds new menu items or makes other big changes. Gross noted that the change was "not easy," but the franchisees eventually came on board, because the fresh beef burgers are just better. "Franchisees have become believers very quickly," she said.
McDonald's shared the news about improved sales of fresh beef because he questions whether he will introduce a vegetable protein burger to the American menu.
Several fast food chains, including Burger King, have added menu items without meat, as consumers are interested in the product. McDonald's offers a vegetarian burger in Europe.