With Every Extra Value Meal In 2011. By 20% In 2012 .

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Kilojoule labelling on menu boardswas introduced nationally in 2012.Salad or Fries became a standard optionwith every Extra Value Meal in 2011.The sodium content in our cheese will be reducedby 20% in 2012, impacting 14 menu items.Today, 1 in 3 Happy Meals sold include eithera Seared Chicken Snack Wrap, apple slices,low-fat flavoured milk, fruit juice or water.In 2012 we introduced lamb to ourmenu for the first time.10www.mcdonalds.com.au3 FOOD ANDNUTRITIONCORPORATE RESPONSIBILITY and sustainability REPORT11

Maintainingcustomer trustOur customers choose McDonald’s because they love our foodand trust us to serve safe, hot and fresh food to them every timethey visit. Over the past decade McDonald’s has been on a journeyto address community concerns around the nutritional value ofour menu items and we have made many positive changes. Someof these include introducing healthier options for both adultsand kids, ensuring nutrition information is easily accessible socustomers can make informed choices and taking significant stepsto address community concern regarding the marketing of ourfood, specifically to children.We actively communicate with experts and informed third partiesto help guide our menu decisions. We have a close, ongoingworking relationship with The Food Group Australia – AccreditedPractising Dietitians – and we turn to them regularly for adviceand information about nutrition. We also consult regularly withgovernment departments, health and nutrition bodies, researchgroups and nutritionists.Likewise, we regularly ask our customers what they want fromus. Amongst other forms of research, our ongoing customersatisfaction survey tracks customer perceptions of their mostrecent visit to McDonald’s. Customers are asked to rate theiroverall satisfaction with their visit plus provide detailed views onthe following attributes: value for money; speed of service; friendlystaff; taste of food; cleanliness; hot food and order filled correctly.In addition we operate a customer service phone line and emailsystem to answer questions and receive feedback from thepublic. In 2011, the customer service department received 88,163emails, phone calls and letters from the public. Of these contacts,36,706 were complaints with the remaining 51,457 contacts beingquestions, compliments or comments.Food safetyWe are proud of McDonald’s food safety record in Australia butwill never be complacent. We continue to be vigilant about foodsafety standards and collaborate with government, industry bodiesand other experts to support innovation and improvement in foodsafety practices.To ensure the integrity of our food we have stringent food safetyprocedures in place at every stage of the food preparation process.Our food safety plan is based on the Hazard Analysis CriticalControl Point (HACCP) approach. A HACCP plan identifies hazardsto which products might be exposed and the critical points wherecontrol measures must be in place. It then establishes a systemfor monitoring them as well as plans for corrective action. Everyrestaurant has a HACCP-based plan in place and every supplieris required to have a written and externally-verified HACCP planfor every food and packaging product supplied to the McDonald’sAustralia system.12www.mcdonalds.com.auAs part of our comprehensive HACCP plans hundreds of differentsafety and quality inspections and checks are in place to monitorfood as it moves through our supply chain to our customers overour restaurant counters. As an example, a meat patty undergoes52 quality checks before it arrives in a restaurant. The results ofthese checks are recorded which means it is easy to verify thatprocedures have been followed.McDonald’s gets grilledHealthier menu optionsResearch tells us that many of our customers view our healthiermenu options as a critical element of our corporate responsibility.McDonald’s Australia is committed to providing appealing,healthier menu items for our customers and as a result ourmenu is regularly reviewed and changes made.Working closely with Accredited Practising Dietitians at The FoodGroup Australia a number of menu changes have been made overthe past decade to improve the nutritional value of our food. Wewill continue to review and update our menu based on customerand stakeholder feedback.In a world first, early in 2007 nine McDonald’s meals earnedthe Heart Foundation Tick indicating that these menu optionshad been independently tested to ensure they met the HeartFoundation’s strict nutrition and promotion standards. Our aimwas to help our customers more confidently make healthierchoices when visiting our restaurants.In 2011 the National Heart Foundation ended its Tick licensingprogram in the quick service restaurant sector. This unfortunatelymeant that McDonald’s was no longer able to participate in theHeart Foundation Tick program. However our positive relationshipwith the National Heart Foundation continues and a rangeof healthier options remains on the menu.Our current 1 2 3 Happy Meal menu means parents andchildren can choose the meal components that best suit theirnutrition requirements and taste preferences. The Happy Mealmenu includes the Seared Chicken Snack Wrap, Fruit Bag,CalciYum low-fat flavoured milk, juice and water as well astraditional favourites such as Chicken McNuggets, smallFries and Cheeseburger.In a first for the quick service restaurant industry, in 2012McDonald’s Australia gave independent production companyWTFN the opportunity to access-all-areas, inviting camerasto capture a complete and candid look at McDonald’s foodsupply chain and create a television documentary.The documentary reviewed and revealed the journey thefood takes, from the Australian farmers who supply toMcDonald’s, through to the final menu items availablein the restaurant. Filmed over a period of one week inJanuary, the documentary invited six everyday Australians,from across the country, behind-the-scenes and asked fortheir honest opinions.The final documentary called McDonald’s Gets Grilledaired on Channel Seven on 2nd April to over one millionviewers and was an important step towards dispellingsome of the myths and misconceptions about our food.The documentary can be seen in full on the McDonald’sAustralia YouTube channel at www.youtube.com/user/McDonaldsAustralia.To continue our focus on being transparent andopen with our customers, we’re also planning toopen our kitchen doors to the public in the near future.Customers will be able to take a tour behind the counterat McDonald’s and see how Big Macs, Fries and Baconand Egg McMuffins are made.CORPORATE RESPONSIBILITY and sustainability REPORT13

Our food and nutrition journeyover a decade (2002–2012)McDonald’s CEO Guy Russo startsattending obesity forums and meetingswith key organisations such as DiabetesAustralia and the Obesity Taskforce.A range of core menu improvementsare launched including: A reduction in the sugar content of our buns.Our buns contain no more than 5 per centsugar which is similar to the sugar contentof hamburger buns found in a supermarket. New white meatchicken nuggets. McDonald’s vegetable oilblend is improved so that itis virtually free of trans fattyacids and meets standards forhealthier oils. A range of sodium reduction projects are begunacross a range of products including dressings,sauces, bread and chicken. Seared chicken launches in a range of saladsand burgers.2002 2003 2004 2005 2006 20 07 Salads Plus menu is launched including salads, fruitparfait, Chicken Foldover and a Lean Beef Burger. An alternative Happy Meal is introduced, consisting ofa toasted cheese and tomato sandwich, sultanas andorange juice with less than 6 grams of fat per serve. McDonald’s begins to consult with Accredited PractisingDietitians at The Food Group Australia. The Quickstart breakfast menu is introduced and includesbreakfast cereals, yoghurts, juices and fruit cups.14www.mcdonalds.com.au New warm chicken salads are added to the menu. Deli Choices menu launches. Three out ofseven products contain less than 10g fat. McDonald’s participates in the DAA (DietitiansAssociation of Australia) conference. A range of menu enhancements are launchedincluding wraps fortified with fibre. A new healthier choice Happy Meal item is addedto the menu – the seared chicken Snack Wrap. McDonald’s and other quick service restaurantsintroduced the Quick Service Restaurant Initiativefor Responsible Advertising and MarketingCommunications to Children. As a member of the Australian Food and Grocery Council QuickService Restaurant Forum McDonald’s is an active participant in theAustralian Government’s Food and Health Dialogue. The Dialogue’sprimary activity is action on food innovation, including a voluntaryreformulation program across a range of commonly consumed foods.The reformulation program aims to reduce the saturated fat, addedsugar, sodium and energy, and increase the fibre, wholegrain, fruit andvegetable content across nominated food categories. The sodium content inour cheese is reducedby 20%, impacting14 menu items.2008 2009 2010 McDonald’s Australia is the firstnational restaurant chain to earnthe Heart Foundation Tick ona range of meals. McDonald’s wins best standat Dietitians Association ofAustralia conference. Happy Meal Choicesintroduced and includesfruit bag, apple juiceand water.2011 2012 A choice of Garden Salad or Fries withany Extra Value Meal is introduced. A healthier option for breakfast is addedto the menu — Uncle Tobys Oats with Appleand Sultanas. The sodium content of Crispy Chicken Stripsis reduced by over 40 per cent.CORPORATE RESPONSIBILITY and sustainability REPORT15

Nutrition informationSustainable coffee –that tastes good tooWith 687 McCafés (as at 31 December 2011) in Australia,McDonald’s is the biggest coffee shop chain in the country.As such, we believe it is important to offer our customers agreat tasting coffee which also supports coffee workers, theircommunities and the environment.To do this we continue to ensure all coffee is sourced fromRainforest Alliance certified farms. In just one year McDonald’sAustralia has sourced approximately 1.5 million kilograms ofcoffee beans from Rainforest Alliance Certified farms.McDonald’s is committed to helping our customers makeinformed decisions about their food choices. In 2012 we introduced menu board labelling whichprovides clear kilojoule content information forcustomers prior to their purchase decision.In 2004 we introduced nutrition labellingon our packaging.This was enhanced in 2006 to include percentageDaily Intake figures.Nutrition information for all of our products has alsobeen available on the McDonald’s corporate websitesince it was developed.adding lamb to the menuResponding to the popularity of lamb in Australia, The SeriousLamb Burger and The Serious Lamb Taster were introducedto the menu in 2012. The Serious Lamb Burger included alamb pattie, tomato, beetroot, aioli, tomato sauce, onionand an egg. The Serious Lamb Taster incorporated someof the flavours from The Serious Lamb Burger, in a wrap.The new menu items were developed after 18 monthsof planning. The process began with customer researchand included working with local Australian lamb suppliersto ensure the continuous supply of meat and significanttesting to develop the right flavour profile.The lamb products were on the menu for 12 weeks in2012 and the success of the innovation means thatlamb is likely to return to the menu at a later date.16The Rainforest Alliance is an independent, non profitenvironmental organisation with over 20 yearsexperience in the development and promotion ofstandards in sustainable forestry, farming andtourism. To learn more about the RainforestAlliance go to www.rainforest-alliance.org.After listening to feedback from ourcustomers, our focus continues to beimproving the taste and quality of ourcoffee. To do this we introduced a richer,darker coffee blend more suitable forthe Australian palate, embarked ona national program to make selectedcrew into dedicated baristas andstandardised equipment maintenanceacross every McCafé.Consumer research has already indicatedthis improvement program has beena success with a Canstar Blue surveyconducted in September 2011 indicatingthat McCafé now has the most satisfiedcustomers of all the major coffee chainsin Australia.The lamb was being sourced from farmers inNew South Wales, Victoria and South Australiaand provided another positive opportunity forMcDonald’s to work with Australian producers.www.mcdonalds.com.auCORPORATE RESPONSIBILITY and sustainability REPORT17

Toys andMcDonald’sChildren’ssponsorshipsWe have always used toys and characters with our foodsas a response to the desire of parents for their child’sMcDonald’s experience to be a fun and special occasion.However we recognise there is some community concernaround the use of our toys in our promotions and so wehave reduced our toy advertising on television by 80 percent since 2002.Since our first restaurant opened McDonald’s and its franchiseeshave always given back to the communities in which we operateand we are proud to be providing much needed support tovarious grassroots organisations.Our toy advertising now represents only three per cent ofthe total McDonald’s Australia media budget. This is downfrom 11.3 per cent in 2007.As a participant of the Quick Service Restaurant Initiativefor Responsible Advertising and Marketing Communicationsto Children, when using these characters, toys and personalitiesas part of a promotion for food or beverages to childrenunder 14 years, the food or beverage used will be one ofour healthier options.Responsible marketingBeing a favourite place for children, we know we have aresponsibility to communicate appropriately with familiesand young people.Due to increased stakeholder and community concernaround marketing practices to children, in 2009, McDonald’sAustralia instigated the introduction of the self-regulatoryQuick Service Restaurant Initiative for ResponsibleAdvertising and Marketing Communications to Children.Along with other quick service restaurants, the AustralianAssociation of National Advertisers and Australian Foodand Grocery Council this initiative provides industrystandards and guidelines for advertising to children.All members of the Initiative agree to abideby these guidelines.18www.mcdonalds.com.auThe main purpose of our support is to add value to thecommunity, and to encourage kids to be active and embracebalanced lifestyles. From the very outset, all sponsorships aredefined by agreed parameters by both organisations involved.We have a policy in place regarding the types of vouchers madeavailable to children as part of our sponsorship agreements. Thepolicy states that all children’s vouchers must offer a healthierchoice and that a carer or parent must be present if a childunder 14 years wants to redeem the voucher.The key to this agreement is that when we are promoting foodand beverages primarily to children under 14 years we will onlyuse foods that are healthier options. For a meal to be considereda healthier choice it should reflect general principles of healthyeating as defined by credible nutrition authorities and mustcomply with defined criteria for energy, saturated fat, sugarand sodium. These criteria were developed by a team ofAccredited Practising Dietitians in consultation with nationalguidelines and authorities on children’s nutrition.As part of the joint initiative, a complaints mechanism hasbeen established whereby consumers can make a complaintdirectly to the Advertising Standards Bureau providing asingle speedy source for complaint resolution.As part of the Initiative, an independent organisation –Healthy Kids – was contracted to monitor companycompliance with the Initiative. At the end of 2011 HealthyKids published its first analysis and the report foundwidespread compliance with the Initiative.CORPORATE RESPONSIBILITY and sustainability REPORT19

for every food and packaging product supplied to the Mcdonald’s . some of the myths and misconceptions about our food. The documentary can be seen in full on the McDonald’s . tourism. To learn more about the Rainforest Alliance go to www.rainforest-alliance.org.

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