McDonald's wants to expand its chicken offerings, and part of that plan could mean the return of a highly anticipated menu item: Snack Wraps.
The company announced that it plans to offer the popular McCrispy chicken sandwich in almost all global markets by the end of 2025 and also convert the product into wraps and tenders.
The fast-food chain's chicken sales now reach $25 billion annually, comparable to beef, and continue to grow.
“In the U.S. industry, we have three very strong chicken brands: McChicken, Chicken McNuggets and of course McCrispy,” Joe Erlinger, president of McDonald's U.S., said Wednesday.
He appeared to confirm the company's intention to change the Southern chicken sandwich, which is served with pickles on a buttered bun, to other items.
McDonald's hinted at the relaunch of its snack wrap menu item in a press release Wednesday
The announcement comes as the fast-food chain looks to expand its chicken menu, including the popular McCrispy sandwich
The original snack pack was released in 2006 and discontinued in 2016 when it underperformed in sales and was deemed too complicated to prepare
'Will we end up with a crispy tender? Yes. And will that eventually allow us to get a McCrispy Snack Wrap? Yes. But we are still in the early days of doing that,” Erlinger said.
The original Snack Wrap was released in 2006 and discontinued a decade later when it underperformed in sales and was deemed too complicated to prepare.
It consisted of chicken, shredded lettuce and cheese wrapped in a warm tortilla. Chains like Burger King and Wendy's have released their own versions of the wrap in subsequent years.
McDonald's also announced plans to open an additional 10,000 restaurants worldwide over the next four years, in what will be the fastest growth period in the company's history.
McDonald's is already the world's largest hamburger chain and aims to have 50,000 restaurants by 2027. The company operates at least 40,000 locations worldwide.
Of the new restaurants, 900 will be in the United States, while 1,900 will be company-owned and franchised stores in Canada, Germany, the United Kingdom and Australia.
The fast food giant also announced its plan to grow its 90-day active user base for the MyMcDonald's Rewards app from 150 million to 250 million by 2027.
“Mobile ordering is a popular and growing choice for customers, with hundreds of millions of mobile orders expected in the third quarter of 2023,” the press release said.
Customers can see the McCrispy – which consists of a chicken cutlet and pickles on a buttered bun – transform into the highly anticipated wrap
McDonald's, the largest hamburger chain in the world, wants to have 50,000 restaurants by 2027
The company already has at least 40,000 locations worldwide, including in Japan (pictured)
To meet demand, McDonald's will expand its US pilot of 'Ready on Arrival' order service to its six key markets by 2025.
The company also announced its intention to leverage emerging technology by announcing a strategic partnership with Google Cloud.
“We are focused on making AI more useful for everyone, with the potential to unlock many new opportunities for innovation,” said Sundar Pichai, CEO of Google and Alphabet.
“The restaurant industry is already benefiting from these advances, and we are excited to see how McDonald's will use our generative AI, cloud and edge computing tools to enhance their iconic dining experience for their employees and their customers around the world. '
In addition, the company will deploy 'universal software that will run all digital platforms for McDonald's customers and restaurants' in the coming year. This includes both the mobile app and in-store kiosks.
Other development plans include rolling out a new restaurant chain called CosMc's in the first half of next year.
One will be located near the company's headquarters in Chicago, while the rest will be in Texas. The company will study earnings and customer reception for at least a year before deciding whether to expand.
Global President and CEO Chris Kempczinski said CosMc's is designed to fill a mid-afternoon sales slump. The move is also seen as an attempt to keep pace with other fast-growing chains such as Starbucks.
The fast-food giant plans to open 900 new stores in the US and 1,900 internationally, in places like Canada, Germany, Britain and Australia
The company also plans to leverage emerging technology such as Ai through a strategic partnership with Google Cloud, which was announced on Wednesday
McDonald's is about to open a new chain of small restaurants called CosMc's to counter the mid-afternoon sales slump. Drinks and snacks will be offered
This competitive spirit is evident in the rumored menu, which includes a churro frappe, a pear-flavored slush and a turmeric latte.
CosMc's, which takes its name from an alien space mascot introduced in the 1980s, also serves snacks like pretzel bites and Egg McMuffins.
“This is a $100 billion category that is growing faster than the rest of the (casual dining) sector and with superior margins. And it is a space that we believe we have a right to win,” Kempczinski explained.
McDonald's plans to test new strategies at its small restaurants, including drive-thru lanes that sort traffic based on order complexity.
According to Kempczinski, there will likely be designated pick-up areas for delivery drivers to reduce crowds in restaurants.
Delivery has proven to be a big moneymaker for the company; it represented $1 billion of global sales in 2017, a figure that has grown to more than $16 billion.
But Kempczinski says it's important to open real restaurants and not just delivery kitchens, because “not everyone wants to have every meal delivered.”
“We have a clear path for future growth as we continue to build on the brand strength, global footprint and digital ecosystem that have resulted in unparalleled competitive advantages and cemented McDonald's as one of the world's leading consumer-facing brands,” the CEO said.