Latest news with #Kempczinski
Newsweek
2 days ago
- Business
- Newsweek
Could Gen Z Kill Off the American Hamburger?
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The hamburger could be on its way out as its spotlight seems to be being taken over by the rise of chicken sandwiches. Experts who spoke to Newsweek attribute this shift in consumer demand in part to Gen Z's growing interest in sustainability and health. Between 2019 and 2024, approximately 2,800 chicken restaurants opened in the United States, while about 1,200 burger joints shut down, according to The Sunday Times, citing Circana's 2025 trends report. During the same time frame, the consumption of fried chicken sandwiches in restaurants increased by 19 percent nationwide, while the consumption of hamburgers declined by 3 percent. Visits to chicken restaurants have also been outpacing consumer trips to other fast-food and fast-casual restaurants, increasing by 4.3 percent year-over-year in the third quarter of 2024, according to the trends research firm Chicken chains also outperformed other restaurants in 2024 in the hamburger category, according to Circana's 2025 Definitive U.S. Restaurant Ranking Report. To qualify for Circana's Top 50 ranking, a restaurant must have an annual consumer spending of more than $1.35 billion, and McDonald's and Chick-fil-A, both of which sell chicken sandwiches, were two of the restaurants leading the way, generating over $100 billion. Photo-illustration by Newsweek/Getty Commenting on the shifting preferences, McDonald's told Newsweek that "chicken remains a major priority for McDonald's." The fast-food chain also pointed Newsweek to CEO Chris Kempczinski's recent message that McDonald's was "excited about the significant opportunity we see within our chicken portfolio and see the potential to add another point of chicken market share by the end of 2026." Kempczinski spoke about the success of the McCrispy, one of the company's chicken sandwiches, which he said is "now in over 70 markets." McDonald's also recently launched the new McCrispy Strips, stating, "We've been listening to our fans on social and beyond, and they have made one thing clear: they want more chicken." The company told Newsweek that it is "exploring exciting chicken LTOs - like the popular Chicken Big Mac that hit U.S. restaurants for a limited time in 2024." Major chicken chains have also noticed this growing demand for chicken burgers, and Amy Alarcon, vice president of Culinary Innovations at Popeyes Louisiana Kitchen, told Newsweek: "Our chicken sandwiches continue to be a standout menu item for us, they've truly become a cornerstone of the Popeyes line up." She said that since Popeyes launched its chicken sandwich in 2019, they have seen "consistent demand and strong guest loyalty." Alarcon added that they've also expanded the category with "flavor innovations like our Pickle Glazed Chicken Sandwich, which brought a bold flavor twist and drove a lot of excitement." "The appetite for high-quality chicken sandwiches hasn't slowed down, it's only growing," Alarcon said. She added that she thought the growing demand for chicken sandwiches was because flavors can be more creative compared to traditional beef burgers. "The rise of global flavors and premium ingredients has opened up creative territory in the chicken space that's harder to achieve with traditional hamburgers," she said. Given consumers' increasing appetite for chicken sandwiches over burgers, Alarcon said this trend has "reinforced our commitment to continuing innovation in this space. "We're exploring new formats, flavors and builds that stay true to our Louisiana roots but also push boundaries in craveable, exciting and unexpected ways." More broadly, the consumption of chicken has been increasing in the United States, while consumption of beef has declined, as illustrated in the graph below. Discussing the reasons behind the growing consumer demand for chicken over beef, Harry M. Kaiser, a professor of applied economics and management at Cornell University, told Newsweek that, firstly, "chicken is a lot less expensive than beef." "In 2024, the average price of beef was a little over $8 per pound, while the average price of chicken was just under $2 per pound," he said. Secondly, chicken is considered "healthier than beef, and people have become more health-conscious over time," Kaiser said. He added that this could be why a switch to chicken is happening among products like hamburgers, "which have a higher fat content." As the country becomes increasingly weight-conscious, with the rise of weight-loss drugs like Ozempic, more Americans seem to be choosing chicken over beef, Jill J. McCluskey, director of the School of Economic Sciences at Washington State University, told Newsweek. She said that she is currently researching "how consumers' grocery store purchases change after starting GLP-1 drugs, for example Ozempic, and chicken purchases increase after the consumer starts these drugs." There also appears to be a sustainability factor behind America's changing consumer demands, as there is "a perception that burgers are unhealthy and bad for the environment," McCluskey said, adding that "chicken is perceived as more sustainable and healthier." This is particularly relevant for Gen Z, she added, as "Gen Z consumers care more about sustainability than past generations." In a 2020 study by First Insight, Inc., 73 percent of Gen Z participants surveyed indicated that they would pay more for sustainable items, with the majority also willing to pay a 10 percent price premium. Gen Z's passion for sustainability was also highlighted in a 2024 report by Innova Market Insights, which found that 34 percent of Gen Z reported being concerned about the planet's health, the highest percentage among any generation surveyed in the report. Kaiser also noted that Gen Z tends to prefer chicken over beef, adding that "younger people eat less meat, and a lot less beef than older generations." According to findings from Technomic's Q4 2023 North American Meat Institute Protein PACT consumer report, cited by National Hog Farmer, 51 percent of Gen Z respondents reported eating more chicken in the past year, which was higher than the average of 41 percent. High-protein diets are a growing preference in the U.S. and were the most followed diet in the country in 2024, according to data from Statista. Given Gen Z's concern for the environment and animal welfare, most people in America who identify as vegetarians fall within that age range, the data said. It suggests that Gen Z generally tends to opt for environmentally friendly meat sources, such as poultry, or refrain from eating meat altogether. McCluskey said that she expected the demand for chicken "to continue to expand, capitalizing on the perception that it is healthier and better for the environment."
Yahoo
3 days ago
- Business
- Yahoo
McDonald's Is Discontinuing These Menu Items—but It's Not All Bad
McDonald's just announced a big change that'll impact several of its store locations. The news follows insights shared earlier this year by McDonald's CEO about plans to introduce CosMc's-inspired beverages to its 2023, McDonald's debuted a new spin-off restaurant focused on specialty beverages in Illinois. Although customers reported hours-long wait times, bribes, and what seemed like an endless line of cars, that didn't dampen the mood—fans were overall very excited to be at the world's very first CosMc's. Named after a long-forgotten mascot from McDonaldland, CosMc's opening signaled a new turn for the Golden Arches. With a vibrant menu that featured several first-of-their-kind drinks, like the Churro Cold Brew Frappé, CosMc's debut solidified McDonald's position as a worthwhile competitor to beverage giants like Starbucks and Dunkin'. But now, that's all about to change. McDonald's has announced it will be closing all five of its CosMc's locations—but there is a silver lining to all this. According to a statement by McDonald's, CosMc's locations will start closing on a rolling basis beginning late June, and it will also discontinue service on the CosMc's app. With an extensive beverage menu that ranges from iced tea to coffee, lemonade, smoothies, and frappés, CosMc's offerings are bold, eclectic, and, to no surprise, quickly became fan favorites. If you aren't able to try any of its innovative drinks like the Popping Pear Slush, a prickly pear-flavored slushie topped with popping candy, before it closes, there is some good news. Although CosMc's stores are closing, McDonald's said that the concept behind CosMc's was as a "launchpad for learning" that was developed to "test new, bold flavors" and explore McDonald's potential in the specialty beverages sector. "Building on the insights gained from the pilot standalone locations," the announcement reads. "CosMc's-inspired flavors will be landing at McDonald's as part of the upcoming US beverage test, seamlessly blending out of this world tastes into the McDonald's experience." The news confirms what McDonald's CEO Chris Kempczinski had revealed during the fast food giant's 2025 Q1 Earnings Call earlier this year, when Kempczinski briefly mentioned that McDonald's will be expanding its beverage menu. It's hard to tell whether McDonald's will roll out CosMc's beverages one-to-one in its stores, but the announcement signals a new beginning for the Golden Arches. Here's hoping we'll soon be able to grab otherworldly sips like the Iced French Toast Galaxy Latte alongside the new McCrispy Strips, all from one place. Read the original article on ALLRECIPES Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Newsweek
3 days ago
- Business
- Newsweek
McDonald's To Close All Spinoff Branches It Launched Across US
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. McDonald's will be closing the remaining branches of its beverage-focused spinoff, CosMc's next month. The company announced the decision last Friday, less than two years after CosMc's was launched. As a result, McDonald's will be closing CosMc's locations on a "rolling basis" and discontinuing the loyalty reward app. Why It Matters While the five stand-alone locations will begin closing next month, McDonald's said that it will incorporate the insights gained from the 18-month CosMc's experiment—described as a "launchpad for learning" for the entire Golden Arches brand. As a result, it said certain flavors inspired by CosMc's will be making their way onto the main menu at "hundreds" of U.S. restaurants. What To Know McDonald's launched the first CosMc's in December 2023, before rolling out further locations in a "10-store test." The initiative was viewed as a way for McDonald's to capture some market share from competitors such as Starbucks and Dunkin'. On Friday, McDonalds said that CosMc's began with the belief that the company "had the right to win in the fast-growing beverage space" and would allow it to "test new, bold flavors and different technologies and processes—without impacting the existing McDonald's experience for customers and crew." It added that "CosMc's-inspired beverages" will be arriving at McDonald's locations in the U.S. as art of the company's upcoming "beverage test." Customers place their orders at CosMc's on December 11, 2023 in Bolingbrook, Illinois. Customers place their orders at CosMc's on December 11, 2023 in Bolingbrook, its first-quarter earnings call in early May, CEO Chris Kempczinski said that the company would be incorporating "new menu items inspired by CosMc's" at existing McDonald's locations. Kempczinski did not specify which items would make their way onto the McDonald's menu, but Fortune identified the most popular CosMc's drinks as the Sour Cherry Energy Burst, Churro Cold Brew Frappe, and Island Pick Me Up Punch. During the call, Kempczinski noted that the CosMc's "test" provided valuable insights for the company, including the discovery that McDonald's customers prefer ordering food alongside their beverages, rather than having the latter as a stand-alone order. "Food is still going to always be an important part of whatever our beverage offering is because that's consumers' expectation for the McDonald's brand," he said. The decision to shutter the alien-themed spinoff also follows a weak quarter for the company. In early May, McDonald's announced that same-store sales had fallen by 3.6 percent in the U.S., the largest decline since 2020. What People Are Saying McDonald's in a statement on Friday, said: "By creating a Learning Lab—in a way that only McDonald's can—the CosMc's team was able to test-and-learn in real customer-facing environments, which allowed for greater agility and speed. Quick adds and edits to the menu based on feedback led to more focused choices for our fans as the test continued. "We've learned so much, so quickly from the CosMc's test. As part of this next testing phase, starting in late June, we will be closing all stand-alone pilot CosMc's locations on a rolling basis and discontinuing the CosMc's app." McDonald's CEO Chris Kempczinski, during the company's Q1 earnings call, said: "Increasingly, we're competing against specialists, and so we're bringing a specialist focused into McDonald's. In beverages, for example, we've discovered some interesting learnings through our CosMc's test, which has better informed our understanding of consumers' customization preferences and interests in new emerging beverage categories. "Later this year, in partnership with our franchisees, we'll be launching a beverage test in the U.S. in some of our existing McDonald's restaurants that will incorporate new menu items inspired by CosMc's." What Happens Next? The company announced that the remaining five CosMc's locations—one in Illinois and four in Texas—will shut down by the end of June, along with the discontinuation of their stand-alone app and loyalty program.
Business Insider
24-05-2025
- Business
- Business Insider
McDonald's shuts down its spin-off, CosMc's, after less than 3 years as sales lag
McDonald's announced on Friday that it is closing its CosMc's spin-off line of Starbucks-style drink shops. McDonald's CEO Chris Kempczinski said in the company's last earnings call that drinks from CosMc's would be introduced to "hundreds of McDonald's restaurants" in the future. "In connection with this next phase of testing, we will begin closing all stand-alone CosMc's pilot locations in late June, and the CosMc's app will be discontinued," a McDonald's spokesperson told Business Insider. When it opened in 2023, CosMc's drew comparisons to Starbucks. Its menu included coffees, teas, lemonades, slushes, breakfast sandwiches, and small donut-like pastries called "McPops." In a December 2023 meeting with investors, Kempczinski said that CosMc's is a "small format concept with all the DNA of McDonald's but its own unique personality." "Its menu includes new customizable drinks, sweet and savory treats and familiar favorites such as the Egg McMuffin," Kempczinski said in the meeting. In its announcement on Friday, McDonald's said CosMc's served as a good testing ground for different new flavors, and it plans to blend the "out of this world tastes" of CosMc's drinks into "the McDonald's experience." "What started as a belief that McDonald's had the right to win in the fast-growing beverage space quickly came to life as a multi-location, small format, beverage-focused concept," the company said. "It allowed us to test new, bold flavors and different technologies and processes — without impacting the existing McDonald's experience for customers and crew." The closing of CosMc's comes as McDonald's faces its lowest sales since the COVID-19 lockdowns. US same-store sales at McDonald's declined 3.6% during the first quarter. With low-income diners pulling back their spending over the past year due to economic uncertainty, McDonald's saw even more middle-income buyers do the same during its first quarter, Kempczinski said in an earnings call.
Yahoo
23-05-2025
- Business
- Yahoo
McDonald's to Add Select CosMc's Exclusives to Regular Menus This Year
McDonald's fans are "so excited" about the latest update regarding its spinoff, CosMc's. During a Q1 earnings call on Tuesday, McDonald's CEO Chris Kempczinski touched upon several hot topics, so to speak, including "interesting learnings" the company gained from the rollout of its beverage-forward concept. While Kempczinski didn't get into all of the fine details, he did say that the findings have influenced McDonald's overall decision-making and that sometime later this year, it would be working with franchisees to bring some of the beverage recipes that were previously exclusive to CosMc's to its standard menus. Most of the menu-specifics–like what drinks are launching nationwide and for how long–are still forthcoming as McDonald's continues to "test, learn, and position itself for growth" in the space. Related:The One Thing That Surprised Us About McDonald's Newest McCrispy Chicken Strips That said, the company previously shared that its "most popular drink customization" was the addition of "Fruity Popping Boba," so it's no surprise to see fans already asking for it to spill over from CosMc's menu to their local Golden Arches. Customers also hope its Churro Cold Brew Frappe, Iced French Toast Galaxy Latte and Tropical Spiceade are among the first to make a splash at McDonald's. "I NEED ALL OF THEM," one more quipped. Though many of the details of the expected beverage menu overhaul are unclear, Kempczinski said McDonald's is "committed to going after beverages." "It's part of why we set up beverages as one of our key three category structures—just because of the opportunity that we saw there," the exec added. Next:
