You’ve spent four decades with McDonald’s, nine as an owner/operator, where it has seen sustained growth. What keeps the Golden Arches humming?
McDonald’s success has everything to do with listening to our customers and evolving to meet their changing tastes and needs. We’re committed to providing our customers with quality products, and menu innovation has certainly been a key driver of our growth. Customers today want variety and they can find that at McDonald’s. So menu choice is certainly the biggest factor, but success goes beyond our food. Service and convenience are also contributing factors with restaurants open early and closing late, and many drive-thrus open 24 hours. Our restaurants themselves have evolved as well. It’s not unusual to walk into a McDonald’s today and find a fireplace, WiFi and flat screen TVs which is all part of the “Forever Young” atmosphere and experience we’re creating for our customers.
Many people blame fast food for the growing obesity problem in the U.S. How do you respond to this criticism?
McDonald’s has led the industry in making nutritional information available. There are brochures in our restaurants that provide nutrition facts, we have a dedicated area on our website, and we post information on packaging and trayliners all to enable customers to make the best choices.
Unfortunately, there are a lot of misconceptions out there and I encourage consumers to take advantage of the many resources we provide to explore and create the meal options that fit within their personal dietary needs. I feel McDonald’s offers a lot of choice for health-conscious consumers.
The McDonald’s owner/operators here in Connecticut and Western Massachusetts have also dedicated tremendous resources to educational programs including those that promote active, balanced lifestyles. These programs, offered free of charge to camps, libraries and schools, promote regular exercise and the importance of a balanced diet.
What is the most important truism you’ve taken away from four decades in the corporate world?
Honestly, my biggest take away hasn’t come from corporate experience, but rather my experience the last nine years as a local business owner. For me, the most important truism is to listen and collaborate. I know the value of hearing what people are saying and the benefit of being receptive to other’s ideas. We take chances in the McDonald’s system and from there, it’s up to you to make smart decisions while moving forward with those decisions. This is how our founder Ray Kroc started McDonald’s, and I remember his passion in everything I do for my business everyday.
What are some of the biggest changes you’ve seen in the last four decades in fast food?
A good example is our menu. McDonald’s was primarily a burger place and now our menu has so much variety there’s literally something for everyone. We have an extensive premium chicken portfolio, premium salads that feature 14 varieties of lettuce, fruit, extensive breakfast options and now beverages like cappuccinos and lattes that you wouldn’t expect to see when you walk through our front doors.
McDonald’s corporate says 5 percent growth in the fourth quarter of 2008 was fed by “seizing opportunities in the key growth areas of chicken, breakfast, beverages and convenience.” What’s been the key to growth in each of these areas?
We now offer an extensive chicken portfolio including premium chicken sandwiches, salads and snack wraps with grilled or crispy chicken. Again, that growth has been driven by consumer demand and our ability to offer premium chicken products that meet that demand. Last year, we introduced southern style chicken biscuit and sandwiches, making chicken available all day.
Breakfast is another important day part for us. Thirty years after introducing the Egg McMuffin – which is still a top favorite – we have a full breakfast line-up, with many portable products at a time of day when most people are on the go. A big boost to our breakfast offering has come in the form of beverages. We have very sophisticated coffee lovers in New England and our new beverage line of McCafe coffees delivers lattes, cappuccinos and mochas all day long. McCafe coffees, along with our new Sweet Tea, are all contributors to McDonald’s becoming a beverage destination.
Is hiring an ongoing problem? How do you keep a commitment to customer service with such a young workforce?
Our crew and managers go through extensive training to ensure both excellent customer service and solid operations. We’re happy to give young people their first part-time job where we’re confident they’ll learn skills that will help them succeed in any business. We help many young people build careers as well as hiring middle-age to senior citizen employees. Many of my crew members have been with me for years. And when you look at McDonald’s managers, most began as crew members and have worked their way up within a McDonald’s organization over 10 or more years.
