Article

McDonald’s on the defensive about kids’ marketing, job opportunities

Attendees at this morning's shareholders' meeting likened Ronald McDonald to Joe Camel.

May 22, 2014 by Alicia Kelso — senior editor, QSRweb.com

Some attendees at McDonald's shareholders' meeting this morning in Chicago got restless earlier than usual regarding the company's children's marketing practices, a topic that comes up annually. CEO Don Thompson was also on the defensive regarding the chain’s track record of providing opportunities for employees.

The latter comments come amid growing employee strikes that have recently spread throughout the world, with protestors demanding higher wages. As the largest QSR employer, McDonald's has been the biggest target for these widespread strikes, which reached a fever pitch last week with protests spreading throughout the U.S. and at least 33 cities throughout six continents.

"McDonald's is often a first job for many entering the workforce. About a third of our employees are 16 to 19 years old, and nearly 60 percent are 24 or younger. And, about 70 percent is part time, many of whom are just getting started," Thompson said. "We are proud to provide the training and resources to help open the doors of opportunity. In the U.S., nearly 50 percent of general managers started as hourly employees. So did about 60 percent of owner/operators. Offering opportunity is who we are."

Notably, more than 100 employees were arrested Wednesday ahead of the shareholders' meeting while calling for higher wages of $15 an hour.

"We went on strike, we protested, we asked politely and now we got arrested to make sure McDonald’s hears us," Ashona Osborne, a McDonald's employee in Pittsburgh, said in a news release. "I came to McDonald's shareholders meeting because I want the company to take me seriously and know that I'm a mother who is sick of struggling to support her son."

Kids' marketing

While the wage protests are relatively new – snowballing since the first strikes in late 2012 in New York City – McDonald's role in children's marketing has long been a perennial topic for the company to navigate. This year, attendees likened Ronald McDonald – and the new Happy Meal mascot, Happy – to Joe Camel.

"I don't eat at McDonald's, but that's not enough when Ronald McDonald is the Joe Camel of food ads. Parents are undermined," said a mother from Lexington, Ky.

Another mother and professional blogger admitted that she has loved McDonald's since she was little, and she associated Happy Meals with happiness.

"That led me to adulthood when I blew up and was 100 pounds heavier than I am today. The day I swore off McDonald's and soda is the day I regained control of my health," she said. "But the battle with McDonald's didn't stop at my refusal. You are marketing to my children without my consent. I don't have the upper hand. When will you shut down happymeal.com?"

Thompson responded to these comments by saying McDonald’s wants to have this dialogue, and wants feedback from its customers on how to continue to get better in offering fruits and vegetables and choices.

"We are trying to make sure we're including food within our meals and enhancing fruit and vegetables, particularly fruit, and we've made some substantial moves in these arenas. All of us are parents. We wouldn't be predatory. We are people and we do have values," he said. "If you have challenges with the menu, we'd love your feedback and will try to address it within our pipeline."

Thompson said his children eat McDonald's and are healthy, and reminded attendees that Ronald McDonald's main association is with the Ronald McDonald House Charities.

"You don't see Ronald eating food. You will see him at birthday parties at restaurants if parents ask for him; we try to make sure we do that because it's fun. And it's not intended to be anything other than fun," he said. "We will continue to take feedback, especially from those who want to help us get better."

Additional highlights

Other highlights from the meeting include:

• The board of directors was accepted. A split stock request was rejected.
• Thompson said the company is focused on "more intimately knowing and satisfying and connecting with our customers."
• The global sales increase of 0.2 percent in 2013 fell short of expectations but the potential to grow the brand, especially in APMEA markets, is "significant" both in the short and long term.
• Thompson focused on fresh food preparation, a recurring theme that has recently emerged aimed at reminding customers "we're a true restaurant," he said. “Every day we cook and prepare our food and beverages. We actually cook in our restaurants, the burgers, the chicken, the fries. We crack eggs, we make salads," he said.
• The Ronald McDonald House Charities will mark its 40th anniversary in the fall.
• Greg Watson, who heads up U.S. menu development, said the company has "some great vegetarian options, and we know we need to add more. We're looking to add more in the future."
• Finally, Thompson provided general color on the consumer mindset, and said confidence is still challenging in some international markets. "In the U.S., we're starting to see a little bit of that coming back. By and large, I am optimistic it will come back."