McDonald's U.S. chief defends $5 meals
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The Wall Street Journal's Kate Linebaugh interviews McDonald's U.S. president Joe Erlinger. Photo: Monica Eng/Axios
McDonald's president of U.S. operations Joe Erlinger defended his company's $5 meals, downplayed sustainability moves and forecast the rise of chicken over beef during a recent Wall Street Journal Global Food Forum downtown.
Why it matters: McDonald's size and scope gives the Chicago-based chain huge influence on market and eating trends.
The big picture: The Kenwood resident, who took the company's top American role in 2019, stressed that his responsibility is to serve his customers, not elites.
- "We're not in a room that's representative of the U.S. population," he said of the gathering of industry leaders and journalists at the Four Seasons Hotel.
- "And I think it's always important for us to ground ourselves in the consumer population, the population that I think we all aim to eventually serve."
The intrigue: The previous evening at the forum, local food advocate Alice Waters criticized McDonald's $5 meal campaign for the toll that cheap food takes on workers, animals and the environment.
- Erlinger responded that, right now, consumers want "great value and affordability. And that's why McDonald's is with the consumer with this $5 meal."
Between the lines: While touting the cheap meals, Erlinger threw cold water on some health and sustainability initiatives McDonald's has tried in the past, including:
- Reusable tableware used in French locations: He called them inefficient because of the water needed to wash them. "We'd much rather go the route of recyclables than reusable, and make sure that we have carbon-based packaging that can be recyclable."
- The McPlant veggie burger: After the sandwich flopped in San Francisco and Dallas test markets, Erlinger concluded that "it's a trend we'll continue to monitor, but I don't think the consumer is coming to us looking for plant-based protein."
- Salads: "If people really want salads from McDonald's we will gladly relaunch salads," but data, so far, is not showing that, he said.
What's next: Erlinger sees the company shifting to slightly more sustainable meat, driven by consumer demand for chicken.
- "We sell more chicken today than we sell beef, and I think that trend will continue. And so for a consumer that's looking for more affordable food, chicken is a great option right now. "