Wed 29 Sep 2004
Healthy eating takes bite out of Big Mac
EDWARD BLACK
COULD the golden arches of McDonald’s finally be losing their allure on the British high street?
In the surest sign yet that the message about the importance of a healthy diet being hammered home by government agencies and interest groups is working, the British arm of McDonald’s suffered the biggest profits collapse in its 30-year history.
The US-owned burger giant revealed that its pre-tax profits slumped by almost three-quarters last year, tumbling from £83.8m to £23.6m.
Food watchdogs said that the 71 per cent slump can be attributed to the changing attitudes of British consumers concerned by such issues as child obesity.
The profits slide also comes after a series of PR disasters. The film Super Size Me - showing its maker Morgan Spurlock living on a diet of McDonald’s food for a month with serious consequences for his health - has been playing to packed cinemas.
In addition, the company is facing a new legal challenge from the so-called ‘McLibel Two’, who have taken their record-breaking defamation case to the European Court of Human Rights, after they tried to hand out leaflets raising concerns about the company’s working practices.
In March this year, the company’s attempt to bring in a line of salads was hampered when their fat content was found to be higher than burgers’, because of some of the dressings used.
Ian Tokelove, a spokesman for the Food Commission, said that the nation was becoming increasingly concerned with what food was going into their children’s mouths.
He said: "This shows that consumers are turning away from fast food. McDonald’s have tried to convince us that they are making their food more healthy, but their salads have been shown to have more fat than a burger when you take into account the dressing.
"People are becoming far more concerned with what and where they eat and are more interested in eating healthy food. Obesity and children’s food has become a hot topic in the media, and these figures show that people are thinking with their feet. McDonald’s and Burger King do have their place on the high street, and we would simply caution people not to make burgers a regular part of their diet, but a treat."
Charlie Powell, a spokesman for the ethical food and farming campaign organisation Sustain, called on the food industry to act together on healthy eating.
He said: "People are increasingly realising that fast-food restaurants are selling a lot of products that are not healthy.
"McDonald’s still has a long way to go before it can claim to be fully socially responsible. It should not target children and it should label how much energy needs to be expended to work off the food.
"This is a wider issue than just McDonald’s," he said, "as Burger King still sells supersize meals and the entire food industry needs to act together."
But McDonald’s said its poor financial results had been expected and insisted its new salads and drinks were starting to win back customers.
A spokesman for McDonald’s said: "The figures focus on 2003 accounts for McDonald’s Restaurants Ltd, which is only one of a group of companies consolidated under McDonald’s Property Company Ltd - the UK’s holding company.
"Equally, it would be hard to attribute any effects of recent challenges to our 2003 results. The Super Size Me documentary proved nothing except what can happen if you overeat.
"McDonald’s restaurants are now completely different from what they were 12 years ago, to reflect the changing market," he said. "We are now the largest seller of fruit bags in Europe, yet you can still turn up for a Big Mac."
The 2003 accounts for McDonald’s Restaurants Limited, filed last week at Companies House, show the chain is facing its biggest challenge since it opened its first British restaurant in Woolwich in 1974. Sales of just over £1 billion have stuck at the same level for five years. Profits are now at their lowest for at least a decade, having peaked at £104.3 million in 2001. Rising rents at its 1,200 UK restaurants have also squeezed profits.
Richard Ratner, a retail analyst from Seymour Pierce, said: "You only have to look at how heavily supermarkets are promoting healthy foods to see where the market is going. It may be hard for the company to change its spots."
A RAW DEAL
A RESTAURANT has asked customers ordering rare or medium-rare burgers to sign a legal disclaimer.
Diners at the Curve Restaurant in Marriott West India Quay in London had to fill in a form which said the hotel chain’s responsibilities had been waived should they suffer food poisoning.
The restaurant supervisor and duty chef also had to sign the document, The Lawyer magazine revealed.
Tim Sanders, a solicitor, who was handed a form after ordering a 10oz medium-rare steakburger, said: "This fear of getting sued is getting more and more bizarre.
"I ordered a standard burger, cooked medium rare and the waiter muttered something and walked away. He came back with a legal form which had to be signed in triplicate and which said ‘Unless you sign this, you can’t have your hamburger’."
