Opportunity
After recently relaunching the McCafé® brand, McDonald’s wanted to reconnect with customers in a purposeful way, as well as boost their coffee credibility and quality perception while inspiring an emotional connection with the brand.
Taking another step in our sustainability journey with McDonald’s, we are excited to share we have overseen a trial of McDonald’s clear plastic cups sourced from recycled and biobased materials.
The cups are sourced from a 50-50 mix of post-consumer plastic material and biobased material, including used cooking oil, using a mass balanced method. Local customers in Savannah, Georgia recently had the chance to take part in the trial, and after they used the cups, they were encouraged to place them in local recycling bins so the material could be used to create other items.
This US market test is one of many steps that will help McDonald’s meet its goal of sourcing 100% of guest packaging from renewable, recycled, or certified sources by 2025. Read about this goal and more here.
Jenny McColloch, VP of Global Sustainability at McDonald’s, said, “We’re on a journey to rethink how we package products to give customers options that reduce waste, maintain the highest safety standards, and enhance the McDonald’s experience they expect and enjoy.”
Learn more about this project here.
tms (formerly The Marketing Store) remains committed to managing our impact and taking responsibility to tackle the climate crisis. Over the past year, we are proud to have made important progress in sustainability innovation, both for our clients and within our own organization.
Amy Zettlemoyer-Lazar, VP Global Sustainability and Innovation, said, “Sustainability activities are accelerating within our industries due to collaborative efforts between suppliers and customers that are led by our passionate employees around the globe. We wouldn’t be where we are today without the collective hard work of all those involved in driving change forward.”
Learn about all our recent sustainability efforts in the overview below:
Alongside our parent company, HAVI, we made the commitment to inspire a better future for people, communities and the planet, establishing the Better Future Blueprint to define our path forward toward advancing more sustainable solutions. Read about these commitments here.
So far, we’ve established a network of sustainability champions among tms (formerly The Marketing Store) and HAVI employees — a group that we’ll be expanding in 2022 — and we’re ramping up for additional exciting Better Future Blueprint (BFB) projects this year.
Part of BFB and a wider HAVI enterprise-wide commitment, we have also taken another milestone step toward making our customers’ supply chains even more sustainable by signing up to the Science Based Targets initiative (SBTi). As an SBTi member, we have formally committed to cutting carbon emissions from our operations by 40% per metric ton of goods delivered by 2030. We have also enrolled in the Carbon Disclosure Project (CDP) to disclose sustainability information while complying with the requirement of the Science Based Targets initiative (SBTi) to publicly report progress.
After many years of partnering with McDonald’s to deliver unique Happy Meal experiences, in late 2021, we had the chance to work with our client to establish the goal of introducing more sustainable Happy Meal toys globally by 2025.
Our recent McDonald’s Germany Happy Meal program is a great example of this work in action.
As of December 2020, all HAVI-sourced in-scope primary guest packaging that is distributed across more than 100 McDonald’s markets worldwide is Chain of Custody certified. This means that wood fiber comes from recycled sources or forests certified to one of two globally recognized standards for responsible forest management: Forest Stewardship Council (FSC) standard or a Programme for Endorsement of Forest Certification (PEFC) national standard.
Working closely across 60+ markets globally, we have also developed an automated dashboard for sustainable packaging roadmaps. This has been rolled out as a consistent format to track progress at aggregated Global and market level. This automated platform is continually evolving to inform strategic decision making in meeting McDonald’s 2025 sustainable packaging goals and commitments.
For the first time, our global headquarters received the Planet Mark certification, and our European operations based in London, Leeds, Paris and Duisburg were certified for the second year in a row. In addition, our Downers Grove Chicago, Stockley Park London, Singapore, Hong Kong and Shanghai offices’ activities were included in the certification for the first year.
Additionally, our Head of Sustainability, Pamela Stathaki, won this year’s ‘Sustainability Influencer’ award, and our organization was also awarded for ‘Carbon Reduction by Intensity’ based on data submitted for the annual Planet Mark certificate.
Debbie Bassi, Manager of Office Services, said “The Planet Mark certification process has taught me a great deal about sustainability opportunities within the office, and we look forward to implementing additional changes like composting recycling to reduce waste going to the landfills. It’s exciting to play a role in HAVI’s commitment to Science Based Target reductions.”
We’re in the process of pursuing Planet Mark certification for year ending 2021 and look forward to continuing to partner with Planet Mark to achieve the reductions needed to pursue certifications in the future.
In December 2021, nearly 50 employees from our Hong Kong office joined together to clean up Angler’s Beach. This event also enabled raising funds for a local charity that delivers free meals for lower-income families.
Also within the past year, the Hong Kong Team also partnered with a local NGO, The Green Earth, which seeks to influence communities to embrace green citizen responsibilities and help establish a sustainable living environment now and for future generations.
Most recently in March, the founder of The Green Earth, Edwin Lau, hosted a virtual event with over 140 of our colleagues around Asia and our vendor partners. He discussed waste challenges as well as how lifestyle, culture and mode of business affect the environment and how individuals and businesses can spark change.
After recently relaunching the McCafé® brand, McDonald’s wanted to reconnect with customers in a purposeful way, as well as boost their coffee credibility and quality perception while inspiring an emotional connection with the brand.
tms capitalized on the launch of the Good is Brewing campaign to create a feel-good, grassroots program that connected customers in an authentic way.
tms developed a breakthrough social and digital engagement that inspired customers to nominate friends, family, and neighbors they saw doing good for a chance to win McCafé® for life.
McDonald’s Asia-wide National Breakfast Day campaign needed a digital component to boost breakfast sales across the region. Driven by the business goal to increase the breakfast business by 1% year-on-year, we tapped into the insight that most people hate mornings, but love them if there is something to look forward to. We created a promotion that was specifically designed to grow brand awareness and boost customer interaction every day.
Alarm clocks are enmeshed in our daily routines, with around 85% of people using one. However, they tend not to be thought of positively. We wanted to find a way for McDonald’s to become part of customers’ morning rituals but in a positive way. The McDonald’s Surprise alarm flips the negative connotations of an alarm clock on its head by giving customers something worth getting up for every day.
tms created McDonald’s Surprise Alarm app, an alarm clock that delivers a fun surprise each morning. Users received McDonald’s food items, partner music tracks, entertainment, and more. From the strategy to the app build and even the language translations, we took the lead on bringing the customer experience to life. Our proprietary technology product iWin integrated with the app, empowering the prize distribution. Like a big roulette wheel in the cloud, it returned a secure, valid, and fair prize result in real time with each and every game play. With over 7.5 million app opens per day, the McDonald’s Surprise Alarm built brand affinity, increased visits, and drove incremental transactions in Singapore, Taiwan and Australia.
McDonald’s sought to overhaul its foam McCafé® coffee cups based on customer insights and a need to align supplier practices with sustainability goals.
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.
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.
tms (formerly The Marketing Store) and McDonald’s are giving cold cups a new life by turning them into Happy Meal® books. In February, McDonald’s customers in Germany received one of seven children’s books made up of 40% recycled cold cup materials with stories focused on the environment and nature.
This innovative Happy Meal® is not only the first of its kind but an important means of promoting closed-loop recycling to give used material a unique second life. With this circular innovation, we utilised materials that potentially would have been recycled into producing single use or disposable products, such as paper towels, and transformed them into Happy Meal® books that can be enjoyed time and time again before being passed on, creating a long-lasting product.
How does this work? In the simplest terms, waste generated during cup production, such as a faulty cup, is combined with recycled collected cups from McDonald’s stores and then pressed. Next, the recycled cups are washed, and the pure paper pulp is separated and transformed into larger reams of paper. These are used to create Happy Meal® books, protecting trees and the environment twice over.
“We are so excited to delight our young customers with this innovative sustainable solution,” notes tms’s (formerly The Marketing Store’s) Global Head of Sustainability, Pamela Stathaki. “This is not just a great example of circular economy brought to life but most importantly it shows the younger generation how by recycling in restaurants they can directly have an impact. It gives them the opportunity to make a difference through a simple behaviour.”
There’s no better time than the start of the year to create new stories. That’s why tms (formerly The Marketing Store) London has dreamed up a new program in the McDonald’s App — My Winning Story — that gives customers the opportunity to create their own epic McDonald’s Story, for their chance to win from 4 prize draws.
From now through to the 20th February, in a customizable and personal experience, McDonald’s UK customers will receive a guaranteed food offer and a chance to win a prize of their choice by entering their story in the app. Prompted through a series of drop-down options, each user will craft a story unique to them before receiving their offer and entry into the draw.
Head to the MyMcDonald’s app (Apple, Android) to tell your winning story!
Our branding and packaging design agency Boxer Brand Design and McDonald’s won a gold MUSE Design award for their 2020 McCafé® holiday packaging line.
The MUSE Design Awards competition is a part of the wider MUSE Awards Program created by the International Awards Associate (IAA) in 2015 to encourage creativity. MUSE awards honor professionals in both creative and design spaces, promoting the entrants’ excellent works in spite of the changing times wrought by the pandemic.
“Evidently, the new normal has brought about changes to how people operate in the world” said Kenjo Ong, CEO of IAA. “Despite the challenges, these individuals have shown remarkable tenacity in their continued excellence, wis clearly demonstrated in their works.”
Judged by 46 jurors from 25 countries, the winners are selected by a diverse panel of qualified professionals. You can view the full list of winners here.
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.
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.
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.
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.
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.
tms’s approach to tail-spend management drove real value through savings and efficiencies — we uncovered additional opportunities to save even more.