Food PR | The Politics behind the US Food and Beverage Industry

The worlds of the food and beverage industry and public relations collided in recent months, with several high profile cases in the United States, that have been particular talking points in our New York office.
The first of these stories concerns McDonald’s, whose status as the world’s largest fast food chain and arguably one of the most recognisable brands on the planet, saw it catapult to the forefront of the current debate surrounding wages in the US fast food industry. This debate concerns an alliance of fast food workers who are currently fighting for a $15 per hour wage and the right to form labour unions. The size of the McDonald’s brand has meant it has become the most visible target in this battle, highlighting the way in which sometimes a large brand presence can come with disadvantages.

While it differs from franchise to franchise, the average McDonald’s worker currently earns slightly above the US Federal minimum wage of $7.25 and the company tried to satiate the public attention that came amidst the protests by announcing a wage rise of around $1 an hour. Unfortunately for McDonald’s, this announcement backfired and was dismissed by many of their opponents as a half-hearted PR stunt that was a case of ‘too little, too late’ for many of their workers. This battle over wages comes at a time when the McDonald’s brand has been particularly beleaguered, as it continues to lose customers to higher-end burger chains and healthier fast food options, as well as the inability to shake off negative brand association as the home of unhealthy, nutrition-lacking food.

Another food and drink behemoth to have hit the headlines recently is Starbucks, over its public relations efforts. The first of these included its #RaceTogether initiative, in which it encouraged its baristas in the States to engage in conversations surrounding the thorny issue of race in America. Unsurprisingly, the initiative received significant backlash on social media, an example of how companies must ensure not to move out of their depth when trying to incorporate social causes in a public relations campaign.

Starbucks did, however, later showcase how attempts to capitalise on social issues can have a positive impact on a company’s public image. The company announced it would be offering its employees free college tuition for a full four years. Given the fact that the issue of college tuition is also a hot topic in American society, this move was met with a much more positive reaction. Starbucks say they will invest $250 million in this project, which will go a long way towards cultivating an image of Starbucks as one of the more equitable high street giants.

These examples show that whilst in the past, big food and drink giants had to only focus exclusively on serving burgers or coffees. The new reality is that, in the digital age, when consumers have more power than ever to gain information on the large corporations that they deal with daily, companies must continue to look at the way in which they run themselves to maintain a positive perception in the public eye.

Curzon PR is a London-based PR firm working with clients globally. If you have any questions, please feel free to contact our Business Development Team bd@curzonpr.com