The Fry-tening Global Crisis: McDonald's Fries Shortage

Photo by Crystal Jo on Unsplash

You can never go wrong with McDonald's fries. Its versatile nature makes it compatible with any food - burgers, chicken and more. However, some McDonald's locations around the world stopped offering large and medium-size french fry orders late last month due to disruptions in the supply chain and potato shortage. Beginning in Japan, the phenomena spread to other countries like South Africa, the Philippines, South Korea, Singapore, Malaysia, etc. 

What happened?

In December 2021, McDonald's Japan broke the global freight crisis news, writing, "We are facing a fry-tening supply crunch on French Fries. But fret not. While you can't Go Large for the time being, you can still enjoy your favorite meals and fries in Medium size." According to the Japanese franchise, shipments of fried potatoes from Canada were delayed due to severe snowfall and terrible weather at sea. Furthermore, the COVID-19 regulations have made it more difficult for shipping companies to ship on time. To address the problem, McDonald's in Japan said it would consider flying in potatoes instead of traditionally waiting for the crates to be sent until they could resolve the shipping issue in Vancouver. But after heavy snow in early January further delayed shipments, the company announced that it would be sticking with its small-order maximum for at least another month.  

Japan is not the only country suffering from a french fry shortage, though. The Japan franchise's announcement was quickly followed by McDonald's Malaysia, Indonesia, and Singapore, stating that the fast-food giant is exploring new distribution channels to return the popular item to their menu. Following that, the Philippine and South Korean McDonald's franchises issued similar statements. To address this problem, customers in the Philippines can only order regular-sized french fries. In South Korea, french fries were taken off the menu for the time being, replacing their popular item with chicken nuggets or cheese sticks. Most South Korean franchise firms use imported frozen potatoes from the United States. South Korea does not grow many potatoes due to its low profitability. 

The world's top potato producers are China, Russia, India and the United States. Most McDonald's franchises source their potatoes from North American farmers, many of whom reportedly had to destroy large sums of crops in 2021 due to lockdowns. In fact, in 2021, the U.S. Department of Agriculture reported a 2% decline in potato crops grown locally. Furthermore, labor shortage due to pandemic woes added to the problem during the potato harvesting season. 

Not only Fries 

Aside from fries, McDonald’s ran into some supply issues with other items on its menu. In Taiwan, some of its stores ran out of hash browns. In the United Kingdom, its branches are experiencing 'tomato shortages' due to the rising costs resulting in tomato producers ceasing production, ultimately leading to a lower tomato supply. Due to the Ukraine-Russia conflict, the cost to produce heat is high. As a result, tomato producers have reduced their production, resulting in a 58% increase in wholesale prices of some tomatoes. According to a McDonalds UK representative, "As a result, the Big Tasty and the Big Tasty with Bacon are being served with one slice of tomato rather than two."  

McDonald's Korea's biggest competitor, Lotteria, has also been experiencing potato shortage issues. According to the firm, it recently started importing frozen potatoes from European suppliers after running into logistical concerns with its suppliers in the U.S., where it imports most of its potatoes. The company added that although the quality of its European supplier may be different from American potatoes, it is a better choice to stabilize the food supply. Kenyan Kentucky Fried Chicken (KFC) locations also experienced potato shortage issues due to the pandemic. The chain offered customers the chance to swap in other menu items such as chicken, buns, soda, coleslaw and maize-based ugali in place of fries in combo meals.

Overall, McDonald’s running into supply chain issues is inevitable. With the pandemic and climate change disrupting the global supply chain, the firm is left with no choice but to constantly adapt while promoting sustainability. Perhaps McDonald’s can look into other potential potato suppliers like the Philippines, whose climate, location, and soil perfectly suit the demands of the firm. Similarly, McDonald’s can also continue to expand its menu to introduce other (healthier) alternatives that heavily use local produce while they deal with their global chain problem.