Opportunity
We had the chance to reinvigorate classic menu items through launching McDonald’s first Artist Residency program and driving cultural relevancy for one of the world’s most loved brands.
Creating a one-of-a-kind experience for modern tastemakers
Approach
Working in tandem with McDonald’s agency partners, tms helped amplify the brand’s place in culture by creating a program that connected the brand with today’s leading creatives — a fresh way to promote classic menu items. Known for its designs that feature an array of characters, Cactus Plant Flea Market has a niche place in the cultural zeitgeist and was the perfect partner to kickstart the program. Tapping our collective marketing and sourcing expertise, we turned heritage characters into highly-sought-after premium collectibles. Not only did we design the figurines themselves, but we also developed retail, packaging, and omni-channel assets.
Outcome
This program outperformed projections across many key objectives, including average check amount and units sold, netting out to an early end to the program due to depleted supplies generated from high popularity. The successes of this program outweighed previous Famous Orders/Big Bet campaigns for the brand. The program also garnered high levels of attention and positive mentions from traditional and social media.
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Boosting the momentum of a long-standing program
Driving McCafé® sustainability efforts
Opportunity
McDonald’s sought to overhaul its foam McCafé® coffee cups based on customer insights and a need to align supplier practices with sustainability goals.
Approach
McDonald’s tapped tms to initiate, manage, and implement the conversion of their foam cup to a renewable resource with the optimized double-wall fiber hot cup. It had to be cost-effective and easily deployed to more than 14,000 restaurants in the United States. Recognizing the gold-standard of the FSC® certification and influence of the trademark and organizational reach of the label, tms also managed the phase-in of the FSC® certified board and subsequently included the graphic on the hot cup.
Outcome
The resulting cup aligned with brand demand for sustainable products as well as consumer expectations for quality and corporate responsibility, making it cost-neutral for McDonald’s and its customers. Furthermore, the redesign promoted environmental sustainability and highlighted McDonald’s FSC® certification and sustainable practices. The cup’s increased insulation eliminates the need for a sleeve, leading to a reduction in material use and freight cost.
Results
5.8
million
a pounds packaging waste saved
5.2
million
pound initial goal surpassed
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Cutting operational supply costs through smart sourcing
Opportunity
McDonald’s existing approach to sourcing operational supplies locally across Europe involved multiple suppliers and dozens of sourcing efforts in various countries. They needed a sourcing partner who could provide a strategic, centralized approach to unlock more value across a broad geography.
Approach
tms managed the sourcing of operating supplies across multiple countries, freeing up McDonald’s resources to focus on the core business. We used our broad category experience to drive supplier management activities, including compliance management and establishing a framework for future events, such as contingency sourcing solutions and capacity allocation.
Outcome
tms was able to provide a cost-saving and more efficient solution with 18% average total savings delivered through RFP negotiations and supplier/specification efficiencies. tms ultimately drove savings and quality control by bundling volumes.
Results
8.5
Million
dollars in total savings
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Tackling tail-spend to unlock savings
Opportunity
Tail-spend is one of the biggest sources of incremental savings available. It requires leveraging spend volumes to unlock savings but also demands process discipline to define a structured approach and accelerate decision-making, which most companies don’t have the time or resources to do. tms identified an opportunity to help McDonald’s save big.
Approach
A centralized tail-spend program reviewing non-core categories gives markets access to savings from leveraged spend on products, such as condiments, across markets that aren’t currently benefiting from buying together. tms managed the tail-spend across non-core food items in various markets, using analytical tools and proven methodologies to deliver savings fast. The funding for our services was derived from savings generated from Year 1 based on agreed estimated annual volume, which meant there was no risk to McDonald’s.
Outcome
tms’s approach to tail-spend management drove real value through savings and efficiencies — we uncovered additional opportunities to save even more.
Results
8.7
Million
dollars in total savings
13
Percent
total savings delivered through streamlining process
40
Million
dollars in additional opportunity identified
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Delivering culturally relevant design to bring families together
Opportunity
McDonald’s wanted to introduce rice-based entrees in Northern Asia to grow the dinner day part and find a way to bring families together. They needed a short-term packaging solution that allowed for effective containment in less than three months. They were also looking for a longer-term solution that offered a more consumer-centric approach.
Approach
tms took a two-step functional packaging approach for both short and long-term gains. The first batch of packaging was delivered in less than three months, allowing the restaurant to quickly launch rice entrees. For the longer-term solution, tms analyzed main consumer preferences for a dinner experience. We harnessed these insights to create new packaging that encouraged meal sharing while maintaining product integrity and quality.
Outcome
Leveraging tms’s award-winning design teams and extensive supplier network, we delivered new packaging in record time, then adapted the next round of designs using our findings with limited investment on the front end. Our modular packaging enhances the customer experience, allowing them to share food in a way that feels comfortable and familiar.
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