Strategic CSR - McDonald's (II)

The article in the url below shows how fast food in the U.S. has evolved over the past 30 years. Of course, the term "evolved" sounds inherently progressive – in that fast food evolved in a way that promotes health. In reality, the opposite is closer to reality. While it is true that menu options have expanded and often include salads (which are healthier only as long as you don't drown them in dressing), it is the size of the portions and their makeup of fat and salt that caught my attention in this article:

 

"But as menus swelled over the past three decades with grilled chicken wraps (McDonald's) and 'fresco' burritos (Taco Bell), many options grew in size and the calories and sodium in them surged, according to new study from researchers at Boston University and Tufts."

 

The research was recently published in The Journal of the Academy of Nutrition and Dietetics and consisted of a study of multiple fast-food chains over 30 years:

 

"The researchers studied 1,787 entrees, sides and desserts at 10 chains — Arby's, Burger King, Carl's Jr., Dairy Queen, Hardee's, Jack in the Box, KFC, Long John Silver's, McDonald's and Wendy's — from 1986 to 2016. In that time, the number of items in those three categories rose 226 percent."

 

The results are not encouraging:

 

"Across the 10 chains, the researchers found, the average entree weighed 39 grams more in 2016 than in 1986 and had 90 more calories. It also had 41.6 percent of the recommended daily allotment of sodium, up from 27.8 percent."

 

The same pattern is evident in the desserts on offer:

 

"In 2016, the average fast food dessert weighed an extra 71 grams and had 186 more calories than the average dessert 30 years earlier, the researchers found."

 

And don't forget the sides:

 

"The researchers found that there were 42 more calories on average in items like chips, soups and French fries in 2016 than there were in 1986. Sodium content rose to 23.2 percent of the recommended daily allotment from 11.6 percent, even though portion size did not grow substantially."

 

Take care

David

 

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (4e)

© Sage Publications, 2017

 

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler4e

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

 

 

Bigger, Saltier, Heavier: How Fast Food Changed Over 30 Years

By Tiffany Hsu

March 4, 2019

The New York Times

Late Edition – Final

B3

https://www.nytimes.com/2019/03/03/business/fast-food-health-salt-calories-portions.html

 

Strategic CSR - Minimum wage

The article in the url below presents a strong argument in favor of minimum wage jobs:

 

"Entry-level jobs matter—and you don't have to take my word for it. In a speech last week on workforce development in low-income communities, Federal Reserve Chair Janet Yellen said that 'it is crucial for younger workers to establish a solid connection to employment early in their work lives.'"

 

Although the author of this article has a dodgy record as an employer (to say the least), I think there is value in his position on this issue. Specifically, he argues that the downside to a significant jump in the minimum wage is heightened in an age of increasing automation:

 

"In a survey released last month, the publication Nation's Restaurant News asked 319 restaurant operators to name their biggest challenged for 2017. Nearly a quarter of them, 24%, said rising minimum wages. … McDonald's said last November that it would install self-order kiosks in all 14,000 of its U.S. restaurants. Wendy's announced in February it would add kiosks at about 1,000 locations to 'appeal to younger customers and reduce labor costs.'"

 

While prior research on the effects of a minimum wage suggest that a significant jump discourages entrepreneurs from creating more jobs, the article suggests that, given the increasing ability of machines to replace humans in the workplace, any legislation designed to raise the minimum wage should really be called "the Robot Employment Act":

 

"The trend toward automation is particularly pronounced in areas where the local minimum wage is high. Eatsa, a 21st-century version of the automat, now lists seven locations in four cities, each of which will be subject to a $15 minimum wage within the next 36 months."

 

And this problem is only going to become more apparent:

 

"Taking automation to the next step, Miso Robotics and the owner of CaliBurger announced in March they have developed a robotic arm, called Flippy, that can turn burgers and place them on buns. CaliBurger plans to install them over the next two years in 50 restaurants worldwide."

 

Take care

David

 

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (4e)

© Sage Publications, 2017

 

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler4e

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

 

 

The Minimum Wage Should Be Called the Robot Employment Act

By Andy Puzder

April 14, 2017

The Wall Street Journal

Late Edition – Final

A19

https://www.wsj.com/articles/the-minimum-wage-should-be-called-the-robot-employment-act-1491261644

 

Strategic CSR - Chipotle

The article in the url below profiles a fast-food company that is edging towards sustainability and profiting as a result (Issues: Environmental Sustainability, p171; Special Cases of CSR: Fast-food Industry, p283):

“Good food wrapped in a socially responsible message has created legions of Chipotle fans -- and a superhot business. … by year's end, it will have 840 stores and top $1 billion in annual sales.”

In spite of the firm’s questionable parentage (the chain was bought by McDonald’s in 1998, but is independent again now), Chipotle is claiming a market niche for itself by focusing on high quality products:

“The chain now serves only rBGH-free dairy products, and all of its pork meets its standards for hormone- and antibiotic-free, humanely raised meat, as does 80% of its chicken and 50% of its beef. That makes Chipotle the largest restaurant buyer of humanely raised meat.”

Chipotle’s founder and CEO, Steve Ells, is committed to the humane treatment of animals throughout the food industry as a means of enhancing the “dining experience” for consumers:

“Ells's vision -- "We want to influence the supply chain in the United States," he says -- comes at a cost. … Chipotle has to pay a premium for Ells's passion, and so do his customers (the average burrito is now $6 to $7).”

Chipotle’s success is being noted by the competition:

“Burger King and Wendy's, the No. 2 and No. 5 U.S. chains, respectively, recently began to explore humane-pork options.”

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther

Ode To A Burrito
It's a dilemma for investors who want hefty returns and a clean green conscience: Can you own Big Oil and still feel good in the morning?
Fast Company Magazine
From: Issue 124 | April 2008 | Pages 54-56 | By: Arianne Cohen
http://www.fastcompany.com/magazine/124/ode-to-a-burrito.html