McDonald’s CEO Joe Erlinger announced on Wednesday that the company’s test of promoting its plant-based burger in San Francisco and Dallas did not yield successful results. Despite the efforts, the reception from American consumers was not as expected for the McPlant or other plant-based protein offerings.
Erlinger made these remarks at the Global Food Forum of The Wall Street Journal in Chicago on Wednesday. Following his statement, McDonald’s clarified that he was referring to market tests that ended in 2022. The company mentioned that plant-based foods have performed better in the European market.
The stock price of Beyond Meat Inc., the company partnered with McDonald’s to produce the McPlant burger, dropped by 2.5% at 12:01 PM in New York trading on Wednesday. McDonald’s stock, however, remained relatively unchanged.
In 2021, McDonald’s collaborated with Los Angeles-based plant-based meat substitute producer Beyond Meat to create the McPlant platform. This burger was offered in limited quantities at 600 McDonald’s restaurants nationwide. Meanwhile, competitors like Burger King and Carl’s Jr. had been introducing meatless burgers for almost three years.
Beyond Meat began selling plant-based chicken nationwide in the United States in 2021. The company has also partnered with chain restaurants like KFC and Panda Express to develop plant-based meat products.
Generally, European consumers are more receptive to McDonald’s plant-based products compared to American consumers. The McPlant burger has been featured on menus in countries such as the UK, Ireland, Austria, and the Netherlands. Taiwan also had a limited release last year, and now it has expanded to Germany, known for its delicious sausages.
The vegan McPlant burger was launched nationwide in the UK in 2022, with comedian Jack Whitehall and his family starring in promotional ads.
As consumers show a preference for chicken protein, McDonald’s is increasing its investment in chicken products rather than plant-based foods. Erlinger mentioned that the company’s chicken sales now surpass beef sales.
“In part, this is due to people’s economic circumstances,” he said. “Chicken has lower production costs, making it a more affordable option for consumers looking for budget-friendly food choices.”
Amid rising prices, McDonald’s introduced a $5 value meal on Tuesday, available for a limited time at participating restaurants. The company hopes this initiative will boost sluggish sales and attract customers who have been cutting back on spending.
The $5 value meal received a significant number of orders on the first day, with some orders being particularly large. Erlinger noted that sales of the meal continued to grow throughout the day, with one location receiving orders for 90 value meals.
“The restaurants are vibrant with activity,” he said.
(*This article was referenced from Bloomberg news.)