McDonald’s plans to increase its purchasing with diverse-owned suppliers to 25% by 2025, the world's largest restaurant company announced today.
In 2020, the fast-food giant spent $14 billion throughout its U.S. supply chain, 23% of which was through diverse-owned suppliers, the company announced. Its new goal would bring spending with diverse-owned firms to about $3.5 billion a year.
To get there, McDonald’s will need to work with its suppliers and help them implement changes needed to meet the company's demand. In a blog post, Reginald Miller, VP and global diversity, equity and inclusion officer, points to 2012, when McDonald's added apple slices to its Happy Meals, as an example of how one change in the supply chain can send ripples through the system.
"We had to work with suppliers around the world to meet our daily demand because our customers consume, on an annual basis, more than 10 percent of all fresh sliced apples sold in the U.S. That’s 60 million apples per year," he said. "It takes time—but it's time well spent."
McDonald's is also asking other companies it does business with to commit to making similar moves. So far, 20 of its U.S.-based suppliers have come on board with that pledge, which McDonald’s is calling its Mutual Commitment to Diversity, Equity & Inclusion.
McDonald's criteria for diverse-owned businesses include those owned by women and people who are Black, Hispanic, Asian, Indigenous, LGBTQ, veteran or disabled.
The move is McDonald’s latest over the past year to increase its diversity and inclusion efforts. It has also announced plans to increase spending with diverse-owned media and production partners, and tie executive pay to representation goals.
At the same time, however, McDonald’s has faced allegations of racial discrimination against Black franchisees.
