Strong finish in Q1: McDonald’s Philippines poised for full recovery in 2022
In the first quarter of the year, McDonald’s Philippines achieved double-digit sales growth of 29% versus the same period last year driven by strong same store sales growth of 22%.
With the Philippine economy in an upward trend, quick service restaurant giant Golden Arches Development Corporation (McDonald’s Philippines), majority owned, and operated by McDonald’s Master Franchise Holder, Dr. George T. Yang (Chairman & Founder) and Kenneth Yang (President & CEO), is poised for sustained growth and recovery in 2022.
Coming into 2022, McDonald’s remained resilient and sustained its recovery momentum in the first quarter of the year despite the Omicron surge in January. It continued its commitment of being a trusted partner of the Filipino community with its safe, quality food, innovative services, focus on supporting its employees and communities in need, and being a partner of the government in navigating through the pandemic.
“We’ve overcome the challenges of the past 2 years because of strategic investments on innovations we made before the pandemic, which enabled us to serve a safe and frictionless omni-channel experience for our customers. We are confident that this will continue to drive our growth in 2022,” says President & CEO Kenneth Yang.
In the first quarter of the year, McDonald’s Philippines achieved double-digit sales growth of 29% versus the same period last year driven by strong same store sales growth of 22%.
The company has also achieved 100% of its sales recovery plan versus 2019.
“With the ease of restrictions that enabled consumer mobility and confidence, we’re very happy to welcome back more of our customers in our stores.” Yang added. Dine-in sales experienced a double-digit increase from February to March of this year and continued to pick up in April as more areas shifted to lower Alert Levels and election campaigns were in full swing.
YTD March, drive-thru and delivery continued its strong performance both experiencing double-digit growth in sales and guest counts.
Growth across all channels is enabled by the company’s initiative to roll-out cashless solutions. To date, 86% of its store base are equipped with cashless.
Robust momentum towards growth
McDonald’s kept its focus on improving the quality and safety of its food and service across all customer channels. It was underscored with initiatives that the company implemented in support of its employees, owner operators and partners.
To ensure safe restaurant operations throughout the pandemic, McDonald’s launched the M Safe program in 2020. According to the company, the principle of M Safe is that if their employees are safe, they will keep customers safe.
Aside from compliance with all government mandated health and safety protocols, McDonald’s rolled out its employee vaccination program with education initiatives and providing access to the vaccines. 100% of its crew and managers have been fully vaccinated, while 70% of NCR employees and 50% of employees outside NCR have already been boosted.
“Nothing is more important to us than people—our customers, our crew, and managers. It is an imperative to have safety programs in place consistently. Keeping our people safe allows us to serve a better customer experience,” said Yang.
McDonald’s has also remained a committed partner in creating a positive difference in communities where they operate.
McDonald’s Philippines through its charity of choice, supports Ronald McDonald House Charities Philippines’ (RMHC) Kindness Kitchen initiative. The Kindness Kitchen began in 2020 where the charity served McDonald’s meals to frontliners and indigent communities. It has served over 700,000 hot meals and continues to do so today.
The company has also been an active partner of the government in navigating the pandemic through a private and public consortium, Task Force T3. It provided support to its Ingat Angat campaigns that aimed to drive awareness on health and safety protocols, importance of vaccination, and building consumer confidence as the country transitions into COVID-19 as an endemic.
Furthermore, McDonald’s takes a step in doing better for the environment with sustainable restaurant innovations through its Green & Good platform. The company opened its first full Green & Good store in the country in 2021, a store designed using green construction and utility efficient solutions with bike-friendly features to meet the needs of cyclists like a Bike & Dine space and a Bike Repair Station.
The company is set to open more new stores this year that are equipped with Green & Good solutions like solar rooftops, and grid-tied solar photovoltaic (PV) systems, which are both cost-effective and efficient in the reduction of emissions.
Another environmentally sustainable initiative McDonald’s Philippines has introduced this year is its use of strawless lids. The strawless lids allow for less waste to be consumed for its iced drinks.
The McDonald’s Flagship Green and Good Store in Mandaluyong is the first McDonald’s store in the country designed using green construction and utility efficient solutions with bike-friendly features to meet the needs of cyclists.
All set for a strong sustainable recovery
McDonald’s ended 2021 with a 671-store base, opening 36 new stores. With every new McDonald’s store that opens, the company provides employment opportunities with its direct hiring practice, which has been in place since 1981. With direct hiring, even part-time students are given equal opportunities because of a flexible work schedule, allowing them to fulfill their academic requirements while earning.
“With over 40,000 employees systemwide, we will remain committed to working with different stakeholders for our shared goal of the country’s full economic recovery. As McDonald’s continues its growth path in 2022, we will be steadfast in our pursuit of sustainable development, employment and community building with even more vigor,” concludes Mr. Yang.
It’s estimated that consumers experience hundreds if not thousands of marketing messages daily. While the exact number can depend, how much someone believes the message can be more important for marketing success than the number of messages they see.
A new study reveals that a simple word choice in marketing messages can significantly impact how confident consumers feel about believing – or not believing – a claim. Researchers found that when words differ in their “reversability,” or how easily people can think of their opposites, it can trigger different mental processes when consumers evaluate marketing language.
Imagine the messaging options for a new sunscreen designed specifically for those who like a strong scented product. The first product description reads, “The scent is prominent,” while the second notes, “The scent is intense.” The word “prominent” is uni-polar, meaning people tend to negate it by adding “not” to the original statement.
“Intense,” though, is a bi-polar word, meaning readers can easily come up with its opposite meaning and negate the statement by replacing it with its antonym. In this example, “The scent is mild,” instead of, “The scent is intense.”
“When people encounter easily reversible words, like ‘intense’, in messages processed as negations (mild), they experience lower confidence in their judgements compared to words that are hard to reverse, like ‘prominent,’” explained Giulia Maimone, a postdoctoral scholar in marketing at the University of Florida Warrington College of Business.
Across two experiments of more than 1,000 participants, the research demonstrated that this effect occurs because negations of bi-polar, or reversible, words engage a more elaborate cognitive process requiring additional mental effort, resulting in lower confidence of the statement’s truthfulness.
Based on their findings, the researchers suggest that marketers take this advice when crafting language: for new products, use affirmative statements with easily reversible words, like ‘The scent is intense’ in the sunscreen example, which most consumers will judge as true with high confidence. Importantly, this language would also minimize the confidence of consumers who will be skeptical about the message, as they will process it via a more complex cognitive process that reduces confidence in those consumers’ disbelief.
“This simple lexical choice could help companies maximize confidence in their desired messaging and minimize confidence among the doubters,” Maimone explained.
If you’re a perfectionist at work, your boss’ expectations may matter more than your own, research finds
Help your employees by clarifying expectations through regular feedback and performance conversations to reduce role ambiguity, as doing so can provide employees with a better understanding of role expectations and enhance mutual understanding of those standards.
If you’re among the 93% of people who struggle with perfectionism at work, new research suggests that your experience may depend less on your own high standards and more on whether those standards meet your supervisor’s expectations.
Researchers from the University of Florida Warrington College of Business found that whether perfectionism helps or harms employees depends largely on whether employees’ personal standards align with their supervisors’ expectations.
Specifically, they looked at the connection between employees’ self-oriented perfectionism, or the expectations of flawlessness they set for themselves, and supervisors’ other-oriented perfectionism, which reflects the extent to which they set excessively high standards for and critically evaluate their employees’ performance.
Using data from more than 350 employees and about 100 supervisors, the researchers found that perfectionism’s impact depends on whether employees’ standards align with what their supervisors expect and how clearly those expectations are understood.
When employees’ personal standards are aligned with their supervisors’ expectations, they tend to experience less role ambiguity, meaning they have less uncertainty about the expectations and standards for their role, why those standards matter and the consequences of not meeting them. This clarity in their work is linked to better performance, lower burnout and higher job satisfaction.
“Problems between employees and their supervisors are more likely to arise when these expectations don’t match,” explained Brian Swider, Beth Ayers McCague Family Professor.
The most difficult situation occurs, Swider and his colleagues found, is when supervisors expect higher levels of perfectionism than employees expect from themselves. In these cases, employees reported greater uncertainty about their roles, along with worse work outcomes including higher burnout and lower job satisfaction.
“If you’re an employee who struggles with perfectionism at work, our findings suggest that understanding your supervisor’s expectations may be just as important as managing your own tendencies towards perfectionism,” Swider said. “Talking to your supervisor about priorities, standards and how your performance will be evaluated can help reduce uncertainty and ensure you both share a clear understanding of what success looks like.”
The researchers have similar recommendations for employers: help your employees by clarifying expectations through regular feedback and performance conversations to reduce role ambiguity, as doing so can provide employees with a better understanding of role expectations and enhance mutual understanding of those standards.
The researchers also recommend that organizations should consider how employees and supervisors are paired, as mismatched expectations can increase stress, reduce job satisfaction and ultimately impact performance.
Study shows scaling startups risk increasing gender gaps
Founders with HR‑related education counteract these challenges. In ventures led by founders with HR training, the odds of hiring a woman increase by more than 30 percent, and the odds of appointing a woman to a managerial role increase by 14 percent for the same level of scaling.
When startups scale quickly, founders often make hurried hiring decisions that unintentionally disadvantage women, according to new study from the Stockholm School of Economics in Sweden. The study shows how the pressures of rapid growth increase the likelihood that founders rely on mental shortcuts and make biased decisions.
Drawing on large‑scale Swedish data, the study shows that scaling—when companies hire far more people than their usual growth trend would predict—puts pressure on founders to decide swiftly, which increases the use of mental shortcuts. These shortcuts can activate gender stereotypes, shaping who gets hired and who moves into managerial roles.
“During those moments of rapid growth, even well‑intentioned leaders can fall back on familiar stereotypes when assessing who they believe is best suited for the role,” says Mohamed Genedy, co-author and Postdoctoral Fellow at the House of Innovation, Stockholm School of Economics.
Reduced odds of hiring female managers
His research analyzes more than 31,000 new ventures founded in Sweden between 2004 and 2018. It finds that in male‑led startups, scaling reduces the odds of hiring a woman by about 18 percent, and the odds of appointing a woman to a managerial position by 22 percent.
These patterns emerge even in a highly gender‑equal national context, making the findings especially noteworthy.
Crucially, the study reveals that founders with HR‑related education counteract these challenges. In ventures led by founders with HR training, the odds of hiring a woman increase by more than 30 percent, and the odds of appointing a woman to a managerial role increase by 14 percent for the same level of scaling.
“When founders have experience with structured hiring practices, the gender gaps shrink, and in some cases even reverse,” Genedy says.
“This shows that getting the basics of HR right early on really pays off. When things start moving fast, founders with HR knowledge are less likely to rely on biased instincts and more likely to hire from a broader talent pool.”
Prior experience in companies with established HR practices also helps, though less so. It raises the likelihood of hiring women as the new ventures scale, but does not significantly affect managerial appointments.
Differences persist in female-led ventures
The study additionally shows that these patterns are not driven by founder gender alone. Even solo female‑led ventures display similar tendencies when scaling, though to a somewhat lesser degree.
And in female‑dominated industries, scaling increases the hiring of women for regular roles but still reduces the likelihood that women are appointed into managerial positions.
“When scaling accelerates, cognitive bias kicks in for everyone,” says Mohamed Genedy. “Female founders are not immune to these patterns.”
Together, these results point to underlying cognitive mechanisms that shape decisions under time pressure.