Kale Nothing But A PR Stunt For McDonald’s
To say that McDonald’s (MCD) has struggled over the past 18 months is an understatement. Last year, it went through some international scandals in Asia, random closures in Russia and consistently sluggish sales in the United States. With a new CEO and a fresh start, the fast food giant has made a strong play to improve the quality of its food. Earlier this month it announced it was phasing out its use of suppliers who use antibiotics in chicken.
Then a few days later, an analyst at Janney Capital Markets stated that “McDonald’s U.S. plans to roll out kale as an ingredient in its restaurants at some point in the not-too-distant future…Possibilities include kale for use in salads, or perhaps a kale smoothie. More generally, McDonald’s clearly aims to raise consumers’ perception of the quality of its food.”
Kale…Really?
Janney’s analyst said the move has a lot of upside, citing an Eater article that has kale as the #5 thing Millennials want in a restaurant. Here’s the thing, though. In that same article, there was a link to this article, which featured a Zagat survey showing that only 27% of diners across the nation are still in love with the leafy green.
Kale is considered a superfood, but it’s also a fad. If you don’t believe me, consider all these other superfood fads that have people went nuts over before they went back to normal consumption. If McDonald’s even attempts to jump in on this train, it’s going to be surprised when it’s forced to hop right back off after a few stops.
Sincerity or PR Stunt?
In order to even consider adding kale to the menu, McDonald’s would spend a lot of money on market research, so it would be safe to assume management knows the sustainability of this decision. One alternative is to assume that this is nothing more than a PR stunt, an attempt to prove to investors and the public that, with a new CEO, the company is really setting off on a new path to improve the quality of its food and appeal to Millennials.
To be fair, the decision to decrease the use of antibiotics in chicken is definitely the right first step for new CEO Stephen Easterbrook. But the next positive step would be to continue to improve its other flagship menu items, not to add more healthy items to lead consumers to believe they’re making strides in the right direction.
Conclusion
McDonald’s knows exactly what it needs to do in order to win back consumers. All things considered, the first step for Easterbrook with the chicken announcement was perfect. But to follow it up with adding kale to the menu would do nothing but satisfy the short-term interest of the company to make investors and consumers believe McDonald’s is reacting quickly to its quality issues. But who knows, maybe McDonald’s doesn’t know what it’s doing, and it’s just throwing everything it can against the wall to see if it sticks.
Disclosure: None
Interesting article. A question: What PR stands for?
From TM editors: PR=public relations or press release.