Though there has been progress, the jobs report released Friday indicates a continuation of the labor shortage that has hindered the restaurant industry since the start of the pandemic.
These labor shortages translate to a host of issues, like slower service, order inaccuracies and trimmed operating hours. For employees managing limited-time promotions created specifically to generate traffic, it can create a pressure cooker environment.
That seems to be the case with McDonald’s Cactus Plant Flea Market Box, launched just last week but already sold out in several markets. A look at social media posts show McDonald’s employees “begging” customers to not order the “adult McDonald’s happy meals” because they’re overwhelmed with orders.
We’ve heard this song before time and time again, and McDonald’s is certainly not unique with these challenges. In fact, unionizing efforts are growing in the industry in part because employees feel understaffed as they manage buzzy promotions through more channels, like delivery and curbside. During the last round of earnings calls, several executives acknowledged continued staffing challenges — including McDonald’s.
“We do think we’ve got a formula and a playbook that, if deployed, can ensure that we’ve got our restaurant properly staffed … We’ve got to get after this the old-fashioned way, which is just making sure we’re a great employer and offering our crew a great experience when they come into the restaurants,” CEO Chris Kempczinski said during the company’s Q2 earnings call in July.
If social media sentiment provides an accurate picture, adding a complicated promotion doesn’t seem to be creating a great experience.
In a statement, a McDonald’s spokesperson said, “We had a feeling the Cactus Plant Flea Market Box would be big … and leading up to the launch, we prepped crew with training and resources in anticipation of higher traffic in restaurants. After just a few days, the excitement we’re seeing from fans has been nothing short of incredible. Our restaurant crew members are the best in the business, and we appreciate everything they’re doing to serve customers during this limited-time promotion.”
Those crew members are tasked not only with an influx of orders, but also informing customers at several locations that supplies have already run out. Late last week, McDonald’s acknowledged that “some of our restaurants have sold out of the limited-edition experience,” but ensured it worked closely with suppliers, distributors, franchisees and partners to bring the collaboration to life.
“We’re thrilled by the excitement we’re seeing,” the spokesperson said.
The supply squeeze is reminiscent of previous McDonald’s promotions, including its limited-time Travis Scott Meal from 2020, which caused a shortage of the chain’s signature Quarter Pounders, and its Spicy Chicken McNuggets launch shortly thereafter, which also led to a shortage.
McDonald’s has an award-winning supply chain and some of the most sophisticated forecasting tools in the industry, so it’s hard not to believe these promotion-induced supply shortages are intentional to create a sense of urgency. As evidenced by the Travis Scott meal, these savvy promotions generate plenty of sales and traffic. That is no doubt the ultimate goal of an operator, but it can come at the expense of a “great experience” for the crew, to which every operator should also aspire. In a tight labor market, it’s paramount.
Therein lies the challenge of the current environment – how to balance critical promotions with increasingly complex operations. Even if the industry continues to make up for the half a million jobs that have yet to be recovered from pre-pandemic times, this balance will continue to become more delicate. This is especially true as operators strive to find sales from sources other than pricing hikes, as inflation-weary consumers inch closer to a breaking point.