McDonald’s failure in the United States becomes a global success

It’s far from unusual for a fast food dish to be more popular around the world than in the US

Aside from the occasional temporary promotion, Yum Brands (YUM) – Get Free Report KFC has removed the Chicken Twister Wrap from its US menus since 2013. But in countries like France and China, it’s a menu staple. .

While McDonald’s (MCD) – Get Free Report Mighty Wings failed to take off when the chain tried to launch them in the US – in the 1990s and again in 2013 – they are another menu staple beloved and permanent in places like Hong Kong and Singapore.

But perhaps the biggest gap between the United States and almost everywhere else is McDonald’s attempt to go plant-based.

While a corn and pea patty called McVeggie has been on the menu of countries like India, Switzerland and New Zealand since 2012, McDonald’s dragged its feet on launching a plant-based burger in the United States.

The McPlant does not go away (in some places)

After years of promising customers a plant-based burger and rolling one out to much fanfare in late 2021, McDonald’s has finally seen low sales of the McPlant. A report by BTIG found that popular spots in California and Texas were only selling about 20 sandwiches a day.

The patty, created in partnership with Beyond Meat BYND, was designed to mimic the taste of beef but was made from a combination of peas, rice and potato.

After a six-month trial, McDonald’s began telling the media that the trial had “completed as planned”, but that did not make the McPlant a permanent menu item.

While the curtain on McPlant’s American history may have fallen, demand for the sandwich is still strong in international locations.

The Double Double McPlant – the same tomato-lettuce-and-cheese-on-a-bread sandwich but with two patties – is set to roll out to all 1,400 McDonald’s locations across the UK and Ireland on January 4.

After a much more successful trial than in the US, the regular McPlant became permanent in the UK in January 2022 while the Double McPlant will join the roster a year later.

“We saw a remarkable response to the trial period in October,” Michelle Graham-Clare, marketing director at McDonald’s UK and Ireland, told media. “And now McPlant is on the high street, in retail parks and petrol stations across the UK and Ireland.”

McDonald’s

Different tastes? Or market oversaturation?

So why has something so popular overseas failed to take off in the United States?

While reports abound that Americans love their real meat, the reality is that competitors like Restaurant Brands International (QSR) – Get Free Report’s Burger King have been successfully selling plant-based burgers since 2015.

The US herbal products market is expected to grow further at a compound annual rate of 19.3% through 2030.

But the McPlant also came to consumers at a time when the appetite for alternative meat began to peak amid an oversaturation of different products on the market.

Beyond’s stock fell sharply as new players in the alternative meat space emerged. And the higher cost of alternative meat is certainly a factor, especially when inflation is at its peak.

“For McPlant to be more ubiquitous, the price must be more competitive with traditional burgers, and the health and climate benefits must be more prominent,” BTIG analysts Peter Saleh and Ben Parente wrote in March. 2022.

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