Column: industry Tag: McDonald,alcohol Published: 2024-12-03 09:56 Source: www.mashed.com Author: SAM WORLEYDEC. 2
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In 2016, when McDonald's announced that it would start serving beer at a new outlet in South Korea, it made headlines in the U.S. — and why not? Mickey D's is way more famous for its Big Macs than for doling out foamy pours. Other global citizens, though, might not have been so surprised: You can get a McBeer in several European countries, including France (where McDonald's also offers table service), Italy, Spain, Portugal, Austria, and Germany — the first country where McDonald's included alcohol among its offerings. In Asia, South Korea wasn't even first in beer sales; that distinction belonged to Hong Kong, though its alcohol-selling location closed in 2004. On the other hand, you can't get beer with your burger in the United Kingdom, despite the country's well-known passion for the pint.
Why is McDonald's beer available in some markets but not others? The chain hasn't explained its strategy publicly, but it seems as if its goal is to respond to the demands of the market and its franchisees; as the brand explained on its FAQ page in 2018, beer sales are "not something that fits with the family-friendly focus of our restaurants in the U.K. There also isn't huge customer demand for it." Logistical concerns also come into play: For fast food chains, serving alcohol can be burdensome in terms of liquor licensing, added security, and higher costs for things like insurance (plus a patchwork of differing state laws, at least in the U.S.). Times may be changing, though — and South Korea could be a sign of things to come.
Why does McDonald's serve alcohol in some places but not others?
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Challenges notwithstanding, McDonald's has seized certain opportunities to serve booze where franchisees want it — beyond just Europe and Asia, too. In 1994, the Los Angeles Times visited an outlet in Brazil that offered not just beer but Champagne and live samba to late-night revelers. Why? "We started getting calls from restaurants who said they wanted to serve beer and have music," McDonald's executive Peter Rodenbeck explained. "We investigated and gave them permission to do it. It's a cultural thing." In the 1980s, higher-ups in the U.S. considered a request to serve alcohol from a McDonald's franchisee in California with a large number of adult customers, but this bid was ultimately withdrawn.
Likewise, it's not just any franchisee in South Korea that started serving beer. It's an outlet located in a hip tech hotspot near Seoul, frequented by young people that the chain is trying to attract amid declining numbers of younger customers. The South Korea example may be a sign that global tides are turning: When Burger King sought its own permit to sell beer in the U.K. in 2016, a spokesperson told Fortune that the company was "just catching up to the rest of the world." And B.K. isn't alone — Taco Bell and Pizza Hut have joined earlier adopters like Chipotle and Starbucks in the ranks of fast food restaurants that serve alcohol. Could more McDonald's outlets be next? Only time will tell.
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