National Post (National Edition)

McDonald’s wants to become fast food’s Chicken King.

'CREDIBLE PLAYER'

- LesLie Patton

CHICAGO •Forgetthos­eold chicken patties. McDonald’s

Corp. has a master plan to become the new Chicken King.

Decades after adding chicken sandwiches to its menu, the Golden Arches has made becoming a “credible chicken player” one of its top priorities, according to internal McDonald’s documents reviewed by Bloomberg News.

The project’s code name: “Better Chicken.”

The push — laid out in a letter to franchisee­s, who operateabo­ut90percen­tofU.S. locations — aims to extend a three-year growth run by being more like Chick-fil-A.

McDonald’s has already taken steps to elevate its poultry, which was long seen as a serviceabl­e if uninspirin­g partofthem­enu.

It’s vowed to stop serving chicken with antibiotic­s and removed artificial preservati­ves from nuggets.

The chain also rolled out Southern-style sandwiches and tenders, which are coated in a crispy buttermilk breading similar to Chick-fil-A.

In Canada, McDonald’s has been pushing its Seriously Chicken lineup, which includes Canadian-raised, grain-fed poultry slathered with guacamole. The move is helping bolster McDonald’s brand image and fuelling profitable sales growth, CEO Steve Easterbroo­k said last month.

The idea now is to build on that push and establish McDonald’s as a top-tier chicken restaurant — rather than just a burger joint.

“It’s definitely a transforma­tional era for McDonald’s,” said Jason Moser, an analyst at Motley Fool. “Chicken is part of that.”

The stakes are high, especially as Americans eat more chicken than ever before. Last year, they consumed 92 pounds (41.7 kg) on average, compared with less than 57 pounds of beef, according to estimates from the U.S. Department of Agricultur­e.

At the same time, Tyson Foods Inc. and other chicken producers are investing in new processing plants, wagering that the meat will become an even bigger part of Americans’ diets.

Chicken has the aura of being healthier, which is helping drive the trend, Moser said. Many Americans are limiting the amount of red meat they consume, so McDonald’s traditiona­l burgerheav­y lineup may be less relevant.

“It would make sense to build a menu that has more chicken,” he said.

The “Better Chicken” effort may involve selling meat that tastes like it’s pressurefr­ied, according to the letter to franchisee­s. That technique is known for creating a crispy coating and juicy interior. It’s also an approach used by Chick-fil-A.

McDonald’s, based in Oak Brook, Ill., declined to comment on the specifics of the letter. But adding new foods “is one of the many ways we are transformi­ng the McDonald’s experience,” spokeswoma­n Terri Hickey said in an email.

“We’re committed to generating even more excitement around the core menu items our customers love — including our chicken offerings.”

Chris Kempczinsk­i, McDonald’s U.S. president, said last year that the company was re-evaluating both its burger and chicken offerings in a bid to improve quality. That includes everything “from the proteins that we use, to the equipment in our kitchens, to our cooking procedures.”

It’s not clear how far Mc- Donald’s will tilt its menu toward poultry.

Part of its “Better Chicken” push may hinge on the way food is marketed. But it makes sense to try to mimic Chick-fil-A, said Bloomberg Intelligen­ce analyst Michael Halen.

The Atlanta-based company, which is credited with inventing fried-chicken sandwiches, has posted the highest average restaurant sales of the top 50 fast-food chains, according to QSR magazine. In 2016, Chick-filA generated US$4.41 million per location. That compares with just US$2.55 million for McDonald’s.

Chick-fil-A also has steadily expanded beyond its Southern perch. Despite drawing controvers­y for comments made by one of its executives opposing gay marriage, the company has made forays into New York and Southern California in recent years. Now, it has about 2,200 restaurant­s across the country.

Chick-fil-A is praised for its customer service, but food quality is central to its success, Halen said. In that area, McDonald’s is still playing catch-up. Its chicken also isn’t as well perceived as the fare at Wendy’s, he said.

Easterbroo­k, who took the helm in 2015, pulled the company out of a sales slump by adding all-day breakfast and modernizin­g its restaurant­s.

Refining its chicken offerings is a logical next step, Halen said.

“It makes a lot of sense,” he said. “Chicken is becoming more and more popular.”

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