McDonald's to launch the McPlant

NEW YORK • Fast-food giant McDonald's on Monday announced it was launching a new plant-based burger named the McPlant, to cater to the growing number of people who do not eat meat.

The brand had fallen behind in the niche market to rival Burger King, which was the first to launch a vegetarian version of its iconic Whopper burger in April last year in the United States.

Other chains such as Dunkin' or Starbucks have also dipped their toes in the growing plant-based market, as consumers become more aware of their health, the impact of livestock farming on the environment and animal rights.

McDonald's had already tested out a plant-based burger in Canada in cooperation with the company Beyond Meat, which specialises in vegan meat substitutes.

Such substitutes, like soya, have existed for a long time, but new companies such as Beyond Meat and Impossible Burger have developed products that closer resemble meat in taste, texture and colour.

The new line will be produced exclusively for McDonald's and will be introduced in selected markets next year. There is no information yet on which the markets are, said McDonald's Singapore when asked.

The restaurant chain has not yet said if it will renew its collaboration with Beyond Meat, saying only it will reach out to third-party suppliers as with all its other products. Beyond Meat shares dropped about 4 per cent on the announcement by the food giant.

McDonald's told investors it was also considering plant-based substitutes for chicken products and for its egg and bacon breakfast sandwiches. "We are excited about the opportunity because we believe we have a proven, delicious-tasting product," said Mr Ian Borden, who heads McDonald's international operations.

McDonald's still relies on its flagship products such as the Big Mac, McNuggets and french fries, which account for about 70 per cent of its sales in its main markets.

"As demand for the familiar in these uncertain times is more important than ever, the company believes these core classics will continue to be significant drivers of growth, thanks to their popularity and profitability," McDonald's said in a statement.

The company also aims to put a new emphasis on chicken-based products, which are growing faster than the market for beef products.

Following the success of its spicy nuggets in the US, McDonald's plans to launch a crispy chicken sandwich there next year.

To boost Internet sales, which have already grown significantly since the start of the coronavirus pandemic, the group will also test a new online platform and a new loyalty programme.

It will build new drive-in-only outlets and have lines dedicated to customers who pre-ordered their meals online.

The group saw its global turnover fall by 2 per cent in the third quarter due to the pandemic.

That was nonetheless better than the 30 per cent drop in sales in the second quarter. The company managed to generate a net profit up 10 per cent at US$1.76 billion (S$2.37 billion).

Almost all of the chain's restaurants remained open during the pandemic.

AGENCE FRANCE-PRESSE