Entrecote burger. Not enough sauce?

McDonald's freezes entrecote campaign

Fast food chain postpones new entrecote hamburger campaign in Israel due to sauce shortage. CEO Omri Padan: New product cannibalized McRoyal sales but attracted new customers

Reuters | Published: 07.12.11, 14:22

McDonald's Israel is halting the campaign for its new product, an entrecote hamburger offered in two flavors – Big New York and Big Texas, Calcalist reported Tuesday.

The chain customarily launches its new product campaigns about a week after they hit the market; however, in this case, the hamburger campaign, which was to be launched by Yehoshua TBWA Advertising, was put off due to a likely shortage in sauces.

McDonald's Israel CEO Omri Padan told Calcalist, "We believe that advertising the product would lead to a shortage of sauces, doing more damage than good."

He added, "Yesterday a shipment of some of the sauces arrived in Israel and in a few days time, another shipment will arrive from the United States. We did not anticipate such high demand; however, the product speaks for itself and we will consider scrubbing the campaign altogether."

Currently, the two hamburgers are at the top of the chain's sales chart, even biting into the sales of the chain's leading product – McRoyal.

"The move cannibalized McRoyal but also attracted new customers," says Padan. "The intention was to create a new product that would bring in a new kind of customer. The product is purchased mainly by teenage boys aged 16 and up and by older customers".

According to Padan, same-store sales are higher as compared with last year although the chain did not launch its summer campaign this year and decided not to hold its traditional big summer event which includes a car-sweepstakes.

The launch of the new entrecote hamburger was McDonald's Israel's biggest in recent years. The NIS 2 million ($590,000) move included the replacement of the griller systems in all of the chain's Israel restaurants and the installation of a new production line.

McDonald's Israel wrapped up 2010 with sales totaling NIS 520 million ($152 million). According to Padan, the chain is expected to conclude the present year with sales hitting NIS 550 million ($161 million).