5 McDonald’s secrets that will shake you completely

1) Kids Consumer: McDonald’s is the world’s largest distributor of toys. It knows that kids love toys and includes one in 20% of all sales, distributing 1.5 billion toys each year. This has led to charges that McDonald’s is fattening profits by aggressively targeting kids with marketing for its unhealthy foods. In secret marketing documents, executives said that customers were losing the emotional connection to McDonald’s “formed as toddlers.” To foster renewed trust, a McDonald’s website for kids once touted mascot Ronald McDonald as “the ultimate authority in everything.” Thanks to toys, marketing and 8000+ play places in the US, about 90% of American kids between ages 3 and 9 visits a McDonald’s every month. 2) Pink Slime: Between 2004 and 2011, McDonald’s included “pink slime” filler in its hamburger meat in the US. Known by the people as “pink slime” the meat filler is officially called Lean Finely Textured Beef. The mixture consists of the meat trimmings left over after all of the choice cuts of beef are taken, including connective tissue. Because the trimmings come from the more contaminated portions of a cow, ammonium hydroxide is used to kill the bacteria resulting in a bright pink colour. Already banned for human consumption in the UK, McDonald’s dropped its use of pink slime in the US following public outcry. 3) Monopoly Scam: Between 1995 and 2000, McDonald’s Monopoly sweepstakes were rigged, making it nearly impossible to win the advertized top prizes. A group of insiders tasked with running the sweepstakes stole the most valuable game pieces, netting over $24M. The sweepstakes generates a 6% increase in monthly sales (nearly 150% globally) when run. Thanks to the dreams of customers who flock to the game despite astronomical odds: 1 in 618M for the $1M prize and an average return of -66% per $1 spent. 4) Corporate Welfare: US government payments to the McDonald’s workforce average nearly 1.2 billion a year, equal to 25% of the company’s annual profits. Because the average US McDonald’s employee makes barely above $7.25 per hour minimum wage, the company is a massive welfare beneficiary. McDonald’s claim wage “flexibility” provides part-time opportunities for young workers, yet the average age of its employees it almost 30. Its dismal wages contribute to a poverty rate of 16.7% among US fast food workers. Fortunately, McDonald’s is committed to the well-being of its workforce. In 2003, it was uncovered that the company’s McResource helpline instructed employees on how to apply for welfare. 5) Political Lobbying: “If they were drowning to death, I would put a hose in their mouth” said the founder of McDonald’s, Ray Kroc, regarding his business rivals. McDonald’s is not above playing dirty to best its competition, spending over $2M annually on lobbying and political donations. In 1972, Ray Kroc funneled $250K (nearly $1.5M today) to Richard Nixon’s creep (Committee for the Re-Election of the President). On Kroc’s agenda was the passing of the so-called “McDonald’s Bill” that would have lowered the minimum wage for teenagers by 20%.Suspiciously, McDonald’s had just illegally raised the price of its Quarter Pounder in the middle of inflationary price controls. Following Kroc’s contribution, however, the Price Commission granted his price increase while blocking similar moves by competitors.

Murtaza Rangwala

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