McDonald’s CEO: Chicken is key growth driver in value war
Chicken is McDonald’s most important growth frontier, the company’s CEO Chris Kempczinski told the Wall Street Journal.
According to the interview, poultry's market size and cost advantages will play a major role in as the quick service restaurant battles to reclaim its value leadership position. The global chicken market is roughly twice the size of beef and continues to outpace beef in growth, he noted.
"Chicken is growing faster globally than beef," he said, adding that McDonald's is responding to strong consumer demand signals by expanding its chicken lineup. The company recently brought back snack wraps and introduced new crispy chicken offerings, both of which boosted sales.
Chicken's typically lower price point makes it a natural fit for the company's renewed focus on affordability. The chain launched a $5 meal deal and more recently announced a menu of 10 items under $3 as part of what Kempczinski described as a return to McDonald's founding DNA around value.
On going viral
Earlier this year, Kempczinski went viral online after posted a promotional video for the chain's new Big Arch burger, where his stiff posture, tiny bites and repeated references to the burger as a "product" got a lot of attention.
The video triggered a chain reaction across quick service restaurants, with rivals Burger King and Wendy’s poking fun at the video. KFC's U.S. president Catherine Tan-Gillespie posted a video taking a confident bite of a KFC chicken sandwich, quipping "at KFC, we'll leave that beef to the boys — no products, just finger-lickin' good chicken."
In the Wall Street Journal interview, Kempczinski said he found out about the online response from one of his kids, who called to tell him he had gone viral "not in a good way." He also joked that he blamed hismother for the criticism that he took too small a bite, saying she had always told him not to talk with his mouth full, and that in hindsight he should have just let it rip.
Marketing is changing
Kempczinski contrasted today's environment with the early days of his career, when marketing meant a carefully planned 30-second TV spot. That world was organized and controlled. Social media has made everything far more dynamic and unpredictable.
In his view, social media gives consumers a greater sense of authenticity, and guests are now just as much in control of a brand's image as the company itself.
This view reflects social media’s growing role in marketing where consumers now expect brands to respond to trends in real time. It's a challenge the entire industry is navigating, and some are doing it exceptionally well.