How did McDonald’s manage to meet the Customer needs, due to Potato Shortage in

2022

CHAPTER 1

Abadies Dominique Gabrielle S.

Cathy L. Castro

Lagua, John Rafael G.

Juico Allen

Sampang Luvern Jr Q.

Bachelor of Science in Business Administration Major in Marketing Management

 Chapter 2

The Story of McDonald's

McDonald's Brothers

Dick and Mac McDonald relocated to California in search of opportunities that they felt were
unavailable in New England. After failing in the film industry, they found success in operating
drive-in restaurants. They took a risk in 1948 by streamlining their operations and introducing
the Speedee Service System, which featured 15 cent hamburgers. The restaurant's success
prompted the brothers to start franchising their concept, with nine of them becoming
operational restaurants. Dick and Mac McDonald perfected their Speedee Service System at
the San Bernardino location, which featured a limited menu of fifteen cent hamburgers,
shakes, and fries. In addition to their original location in San Bernardino, the brothers sold 14
franchises, 10 of which became operational restaurants.
 CHAPTER 3
Problems and Concerns

Food wastage and loss are major issues in the industry as a result of poor inventory practices
and management approaches. To achieve sustainability, a comprehensive approach is
required in product design, manufacturing processes and systems, and the entire supply
chain. Green and lean manufacturing are two holistic approaches to dealing with waste,
pollution, and sustainability issues in the food industry. Furthermore, green manufacturing is
efficient in the management of raw materials, energy usage, process, health, safety, and waste
concerns, all of which are required for achieving socioeconomic and environmental
sustainability goals. Thus, this chapter discusses the integration of lean and green
manufacturing, Internet of Things (IoT) integration with lean management, and case studies
focusing on Sustainable Value Stream Mapping (SVSM) establishments in the food industry,
Lean practices that are astute. The chapter also discusses the challenges of applying smart
lean principles and the future prospects of implementing this system.

MANILA, Philippines — Due to the "global freight crisis," McDonald's Philippines has halted
sales of larger portions of their fries.

On their website, the fast food restaurant initially stated that larger sizes of fries were not
available for delivery.

McDonald's then announced on their social media accounts that they will be limiting their fries
to only the regular size for the time being, leaving out the medium, large, and BFF sizes.

Customers were assured that the restaurant is "working hard to bring back all sizes very soon.

According to a Washington Post report from earlier this year, there has been a growing potato
shortage worldwide as a result of "the COVID-pandemic... bad weather, blights, or labor
disputes."

Japan, South Korea, Indonesia, Malaysia, and Taiwan are all feeling the pinch from the potato
shortage. South Korea, for example, has begun replacing fries with chicken nuggets and
cheese sticks as a side option.

According to Business Insider, McDonald's stated that potato shortages have not been a
problem for stores in the United States, which stores in Asia heavily rely on for potato imports.

Chapter 4

Infographic (pending)
 Timeline of Event

SUPPLY chain issues in the Philippines have impacted restaurant prices and led to a shortage
of popular products such as French fries and crisps since the beginning of the year.

But the country's Department of Agriculture Undersecretary Kristine Evangelista has assured
people that the supply of local varieties of potatoes remains sufficient for the country, saying
in a recent radio interview: "As far as the Department of Agriculture is concerned, our local
potatoes, which unfortunately are not the variety used for french fries, are very very much
sufficient. In reality, we have an abundance."

She did, however, admit that these varieties differ from those used by popular restaurant
chains and in the production of some potato products such as chips.

According to the agriculture undersecretary, several fast-food restaurant chains have reduced
their portions of certain imported potato-based products. Popular restaurant chains
McDonald's and Jollibee have significantly reduced servings of imported potato french fries.

Restaurant Owners of the Philippines (RestoPH) president Ric Teng stated that restaurant
prices in the country have rise
 CHAPTER 5

THE GROUP REFLECTION

Dominique Gabrielle: The article in the Wall Street Journal about Mc Donald's fries
shortage in the Philippines is case that MNCs (Multinational corporations) can be affected by
the global market. On 18th July 2022, McDonalds’ customers in the Philippines had an
unpleasant surprise when they found their favorite french fries to be missing from their
orders. The unexpected shortage has led to a viral social media posts targeted towards
McDonalds regarding the fries shortage and accusations of 'mismanagement'.

Cathy: If a multinational company can't even keep its most basic commodity available to
customers, one does not need to ponder about their competence in other domains.

John Rafael: When we think about businesses, it's usually easy to be led astray by their
marketing claims. One of the most common and powerful lies people tell themselves is that if
a company is selling a lot of products, they must be selling quality. You may think you can't
lose in a situation like this. Either the company has good and valuable products or it doesn't.
In reality, there are many ways to lose.

Allen: McDonald’s has had a lot of different global activities happening for many years now.
One of the new challenges that faces their company is the shortage of fries in Global market.

Luvern: I have not seen anything strange like this before that a fast food chain runs out of its
fried product that time we went to McDonalds, the fries just came so small, almost like if it
was half donut and I know why. They ran out of supply. And I guess it's because of the
season, whenever you go to McDonalds in December, you'll always see kids off from school
and teenagers piling up in the restaurant. It's a perfect place to eat after all. But look at them
now, they're running out of their main source of product.
 Chapter 6

REFERENCE LIST

https://www.philstar.com/lifestyle/2022/04/23/2176236/mcdonalds-philippines-serving-
just-regular-fries-due-potato-supply-shortage

https://ph.news.yahoo.com/mcdonald-philipines-halts-sales-large-042940177.html

https://www.spot.ph/eatdrink/the-latest-eat-drink/89066/french-fries-potato-shortage-
a3284-20220420-lfrm

https://asia.nikkei.com/Business/Food-Beverage/Japan-s-french-fry-shortage-
supersizes-imports-from-China

https://girlsforbusiness.org/index.php/blog/item/the-fry-tening-global-crisis-
mcdonald-s-fries-shortage

https://www.vice.com/en/article/qjbwpb/french-fries-shortage-mcdonalds