Analysis of Circular Economy Practices at McDonald's

Abstract

After the disadvantages of linear economy became more pronounced, more and more companies including McDonalds started implementing circular economy. The study researched how closely the principles of circular economy are practiced by the company and what the customers’ view about those practices is. The study also examined the strengths, weaknesses, opportunities, and potential threats to circular economy. An inductive approach was used in the research process, with a combination of quantitative and qualitative methods. A total of 86 participants from various cities in Finland consented and responded to 20 questions in a structured questionnaire. Later, the data was analyzed with a SWOT analysis. It was determined that McDonalds in Finland moderately follows circular economy principles, but they need to be more visible to consumers. The most visible sustainability practices were waste sorting, food waste reduction, and the use of recyclable materials. The consumers appreciated that the company practiced circular economy and supported it, and they were ready to work together with the organization. However, a few interviewees found the practices to be time-consuming and inconvenient, and to present some hygiene concerns. The position of McDonalds to practice circular economy is strong because of governmental and administrative support giving the company economic and brand image benefits, as well. However, the material choice for food and packaging was a major weakness, with rising costs and dependence on the global economy as a potential threat.