The Americas:
McDonalds misses financial goals, launches meal deals
McDonald’s missed its second-quarter earnings and revenue estimates, with the company’s same-store sales falling for the first time since the fourth quarter of 2020. The fast-food giant reported second-quarter net income of $2.02bn, or $2.80 per share, down from $2.31bn, or $3.15 per share, a year earlier. In the U.S., McDonald’s same-store sales decreased 0.7% for the quarter. A year ago, the chain reported U.S. same-store sales growth of 10.3%. McDonald’s is leaning into discounts to bring back diners. The group launched a $5 meal deal in late June, five days before the end of the quarter.
Chipotle will increase portion sizes following customer complaints
Chipotle has responded to customer complaints on social media, admitting that portion sizes at some locations have been lacking. On July 24, chairman and CEO Brian Niccol confirmed that the chain would be re-evaluating its portion sizes during the company’s Q2 2024 Earnings Call, stating that complaints on X, TikTok, and other social platforms had played a part in the decision. “We are re-emphasizing training and coaching around ensuring we are consistently making bowls and burritos correctly,” Niccol said.
Asia Pacific:
Tokyo gets top marks as a foodie city
The best city for foodies is Tokyo, Japan, according to research by BacanaPlay, which analyzed more than 50 cities, considering metrics including the number of Michelin star restaurants, the cost of a mid-range three-course meal, the number of food festivals and culinary events and the average ratings for top restaurants. Tokyo received a composite score of 40 out of 40. More than 530 restaurants in the city have Michelin stars, while meal costs are relatively affordable at $44 for a mid-range three-course meal. Tokyo also hosts four major food festivals this year.
London, Italy, Paris and New York made up the rest of the top five spots.
Hong Kong restaurants anticipate surge in takeaway due to heat
Nearly 60% of Hong Kong restaurants anticipate an increase in demand for takeaway orders due to the summer climate, according to the result of Deliveroo’s Restaurant Confidence Index during the second quarter of 2024. Local restaurants are also taking proactive measures to attract diners, with 33% of the restaurants surveyed saying they were curating seasonal food and drink during the summer holiday to drive business growth. With many customers likely to avoid dining out due to the hot weather, 21% of restaurants are adjusting their takeaway menus to cater to the potential surge in demand for delivery orders. The Restaurant Confidence Index survey was conducted between 1 and 12 July.
Europe, the Middle East and Africa (EMEA):
Food shortages hit the Olympic Village
Several athletes have complained about a shortage of food at the Olympic Village in Paris, according to reports. Competitors have said the amount of food available, specifically eggs and grilled meats, is insufficient, according to the French newspaper L’Équipe. Eggs were rationed on Wednesday July 24. The official catering partner to the Olympic Village, Sodexo Live!, confirmed “a very high demand” for certain products and said that “volumes will be increased” to “satisfy the needs of the athletes”. During the two 15-day periods of the Olympic and Paralympic Games, approximately 13 million meals will be served ‒ the equivalent of the amount of food provided at 10 football World Cups.
Surge in mental health issues for hospitality staff in the UK
Hospitality workers have reported an unprecedented rise in mental health struggles, based on a survey conducted by UK charity Hospitality Action. The Taking the Temperature survey, which took place in June, revealed a significant increase in the proportion of hospitality workers reporting mental health issues, rising from 56% in 2018 to 64% in 2020 and to 76% in 2024. The top three challenges respondents said they were likely to face in the next 12 months were managing a good work-life balance (60%), mental health (44%) and finances (42%). Hospitality Action stated that the results correlated with a surge in calls to its helplines over recent months.
Elly Earls
