Will An Apple a Day Grow Sales?
Recently, the Wall Street Journal and the Associated Press ran articles in which I was quoted regarding McDonald’s announcement that apple slices will replace some of the fries in its Happy Meal. McDonald’s move is both innovative and smart.
Here are five thoughts on why this move makes sense:
- McDonald’s can own the healthy-options space in QSR: McDonald’s has already taken many steps to create healthier QSR options (salads, yogurt, McCafe, etc.), and they have proven they can do it while growing their brand and their sales. Putting apples in more Happy Meals represents another step on that path. Competitors are left copying, or trying to create their own space with intentionally-indulgent backlash items, or in some cases perhaps both? With the pressure on QSRs increasing from Fast Casual options that are perceived as healthier, McDonald’s stands to benefit if they are seen as the QSR healthy-option leader.
- Changing defaults changes behavior: by changing the “default” composition of a Happy Meal, McDonald’s will certainly sell more apple slices, for the same reason “opt-in” and “opt-out” marketing programs have very different penetration rates. Most people will choose what they believe is expected. McDonald’s will then be able to tout that change in behavior.
- But the option is still Mom’s: McDonald’s isn’t actually changing what you can get in a Happy Meal. So there’s no reason to complain – you can still get the fries and soda if you want them. Or, Mom can say “that’s just the way the Happy Meal comes now, sweetheart.”
- PR is great but the bigger prize is sales growth: Some have implied that McDonald’s was “forced” into this move by impending regulation. Or, at least, that it is more of a PR stunt than a profit-oriented decision. The reality, though, is that this program could improve sales, if some parents are willing to make incremental visits (or give in to the kids’ pressure one more time) because they feel better about the health of the meal.
- A committed testing approach ensures success: Listen to McDonald’s USA President Jan Fields: “We did one test without fries, and that did not go well at all. We also looked at reducing the number of chicken nuggets to three from four, and that didn’t go well either. Parents bring their kids there as a treat, and fries are important.”
So they have clearly tested various options and learned where the balance should be. The same Test & Learn approach can be applied as they roll the program out to learn even more, since they are planning a phased rollout through next spring.
Of course, we at APT don’t know whether this move will succeed or fail in the end. Ultimately, consumers will decide. But McDonald’s is a brand known for smiles, and seeing a QSR leader apply a Test & Learn approach to this type of program brings a smile to my face.