McDonald's Korea to seek socially responsible value, sustainable growth

McDonald's Korea Managing Director Antoni Martinez speaks about the company's 2021 plan during a virtual video conference at his office in Seoul, Tuesday. / Courtesy of McDonald's Korea

By Kim Jae-heun

McDonald's Korea's Managing Director Antoni Martinez announced the company's 2021 plans via its “Our New Way” virtual video conference Tuesday. Martinez also detailed last year's key business results and the restaurant chain's plans to engage in social responsibility activities as well as building sustainable growth.

Martinez said that sales for McDonald's and its franchises in Korea reached 980 billion won for 2020, up 7 percent from the previous year despite challenges brought on by the COVID-19 pandemic. Revenue for McDonald's Korea, excluding franchises, grew 9.1 percent year-on-year to 790 billion won.

The “Best Burger” initiative, introduced at the end of March last year, led to notable results. Upgrading the taste of burgers by improving the overall burger-building process led to a 28 percent year-on-year jump in monthly sales.

From April to December, McDonald's Korea's total burger sales increased by 18 percent, with more than 20 million Big Macs sold throughout 2020.

The number of customers using McDrive and McDelivery services surged in the same period due to the promotion of contactless shopping. McDrive sales grew 23 percent and McDelivery sales grew 36 percent year-on-year.

Martinez said the company plans to accelerate the “Small but Great Changes for a Better Community” initiative in 2021. McDonald's will concentrate its efforts on four key areas: “Food Quality & Sourcing,” “Our Planet,” “Community Connection” and “Jobs, Inclusion & Empowerment,” reflecting the company's promise to feed and foster the community.

Recent major efforts to improve food quality included replacing the burger buns as part of the “Best Burger” initiative. McDonald's Korea adopted premium sunflower oil last October despite a 20 percent increase in costs. The decision to change oils was rooted in offering foods lower in saturated and trans fats, as well as providing various health benefits associated with unsaturated fatty acids and vitamin E.

McDonald's has been promoting shared growth and economic development with local farmers and business partners by incorporating domestically produced ingredients into its menu, with plans to further expand local sourcing in 2021. On a yearly basis, McDonald's Korea uses 23.5 million eggs, 1,700 tons of tomatoes and 4200 tons of lettuce that are locally sourced.

By continuing to strengthen its connection with local suppliers, McDonald's Korea plans to introduce more delicious and unique dishes that incorporate Korean ingredients. This year, it plans to partner with the Ministry of Agriculture, Food and Rural Affairs and the Korea Agro-Fisheries & Food Trade Corporation to establish a stronger network with local farmers.

McDonald's commitment to addressing environmental issues centered on the 3Rs (Reduce, Reuse and Recycle) will continue this year too. McDonald's Korea reduced plastic use by 14 tons per year by eliminating the plastic lid on McFlurry cups, and since the company's introduction of the strawless lid, use of plastic straws decreased by an average of 4.3 tons per month, a 32 percent decrease compared to the same period last year.

“In the future, McDonald's Korea believes it has an important responsibility to minimize plastic use, expand multi-use cups and develop innovative programs where recycled materials can be used for new purposes,” Martinez said.