McDonald’s NZ invests in healthier eating and more choice

McDonald’s New Zealand will change ingredients, introduce new technology and launch more additions to its menu to allow increased choice and flexibility for customers. The changes come almost a year after McDonald’s global CEO, Steve Easterbrook, announced plans to improve the quality of both the company’s food and customer experience. The company’s share price has since been improving following two straight quarters of increased sales in the US.

As part of the company’s Journey For Good corporate responsibility framework (see image), McDonald’s carried out extensive research with New Zealanders asking them what changes they would like to see in the menu. Further reductions in the levels of saturated fat, sugar and sodium across food and beverages were amongst the top-ranking priorities. McDonald’s has also spent over a year consulting with subject matter experts regarding its role in improving New Zealanders’ meal choices.

‘While fundamentally we sell burgers and fries, the McDonald’s of 20 years ago is very different to the McDonald’s of today and the future,’ explains Patrick Wilson, managing director, McDonald’s New Zealand. ‘We are a modern and progressive burger company. We listen to our customers, as well as those who form opinion and policy, and we continue to change and show leadership, particularly when it comes to the food and drinks we offer.’

Less sodium, less fat, less sugar

‘We recently announced our move to free range for all our fresh eggs,’ Mr Wilson continues. ‘In the last few years we have significantly reduced the levels of sodium in our cheese and fries. Before that we reduced saturated fat by moving to a sunflower and canola based cooking oil.

‘Over the last few years sugar has increasingly come under the spotlight and we have looked at how we can make further reductions in sugar. When we look at our menu, the reduction of sugar consumed in our hot and cold drinks is an area of opportunity, but it has to be done in a way that works for our customers.  

‘In 2014 we trialled a variety of different options with our drinks. These included offering a ‘zero’ sugar drink as the default in combos, showing a range of options on menu boards, and offering the opportunity for customers to swap their soft drink for bottled water for no extra cost.  

‘The trial ran for 20 weeks across 50 restaurants, over which time around six million people passed through those restaurants. This real-world data has given us a very clear view of what works in the short term and what initiatives need to be worked on over time.’

More options

In the fast food industry, it’s long been accepted wisdom that a limited menu reduces wait times, reduces staff costs, reduces wastage and maximises promotional spend. However, McDonald’s has shifted tack on this with its cook-to-order and Create Your Taste build-your-own-burger options, and increasingly offering alternatives to its stock products and combos.

‘Our research clearly tells us that New Zealanders do not want to be told what to drink or have options taken away,’ Mr Wilson says. ‘It’s important to offer a range of genuine choices, reformulate products without impacting quality and taste, and ensure pricing delivers value to the customer.

‘We’ve already acted on a number of the research findings. We now offer the option of a 600ml bottle of water instead of a soft drink in combos for no extra cost. It is priced at two dollars on the normal menu, therefore offering good value. We have also transitioned to a new version of apple and blackcurrant drink, which is thirty percent lower in sugar and calories and uses natural flavours and colours.      

‘We have set ourselves a five year plan to reduce sugar consumed in our menu, and we will share progress and commitments as we move forward.’

Investment to increase choice

‘Alongside the investment in further improving our menu for customers, collectively McDonald’s restaurants will be investing over $15 million in new technology and equipment in their restaurants. By the end of the first quarter of 2016 the majority of our restaurants will feature digital touch screen ordering kiosks, and the Create Your Taste option will be in more than half our restaurants. This enables our customers even more flexibility in what they order, and more high quality, real and fresh ingredients.

‘Create Your Taste also enables us to bring new and exciting offerings. As an example, at our Greenlane concept restaurant customers can choose vegetarian and gluten free options, amongst a host of new choices. Customers tell us they want McDonald’s New Zealand to continue to show leadership, and to grow and evolve with their changing tastes and priorities. We will continue to listen to what people ask of us, and you can expect to see more examples of McDonald’s doing the right things as a business in New Zealand,’ Patrick Wilson concludes.