Interview
From “The Way Forward" Conference: Chris Kempczinski, President and CEO, McDonald’s
- Global delivery growth and the importance of takeaway and convenience are accelerating due to the pandemic, with delivery growth rates likely doubling from the pre-pandemic 20% global rate.
- Industry demand will settle at a level determining future unit growth, prompting competitors to reconsider prudent expansion and leading to industry-wide caution regarding new restaurant development over the next couple of years.
- The definition of safety in the restaurant industry is expanding to encompass customer and crew safety alongside food safety, with McDonald's operating in this safety-focused model for most of 2021.
- McDonald's in-store experiences will incorporate social distancing, protective barriers, and contactless operations over the next six months, while the brand aims to provide stability amid persistent consumer anxiety.
- A vaccine is not expected to be widely available at scale for approximately 18 months, with uncertainty remaining regarding the longevity of behavioral changes like mask-wearing in the U.S. and Europe.
- Regional recovery timelines vary significantly, with Asia facing slower recovery than past epidemics due to volatility, Europe anticipated to return to 2019 levels in the back half of 2021, North America recovering faster due to stimulus support, and Latin America facing an extended timeline due to volatility and lack of government support.
- Large franchise models with 300 to 500 units may struggle with local nimbleness, potentially leading the industry to rethink trends toward larger franchisees, leverage levels, and the pace of unit growth.
- Leadership expectations include prioritizing frequent communication through weekly touchpoints, ensuring transparency with employees, franchisees, and investors, and simplifying business challenges within a larger strategic context.
- Diversity and inclusion efforts will require ongoing commitment from top leadership levels, recognizing that the work is never finished.