McDonald’s exec: Grimace's return fuels the 'awakening of the brand'
The McDonald's Grimace character is just one mascot in a larger strategic play for the fast-food company.
CANNES, France — Ronald McDonald's associates are on a comeback tour to delight and surprise customers, and Grimace is the latest member of the McDonald's (MCD) bunch taking center stage on social media.
According to McDonald’s chief marketing and customer experience officer Tariq Hassan, it's all part of the fast food company's plan to become a "cultural icon" and use that status to drive the business.
"What we uncovered actually a few years ago when [chief marketing officer Morgan Flatley] first launched Travis Scott and our famous orders was an awakening of the brand," Hassan told Yahoo Finance Live at the Cannes Lions Festival of Creativity on Tuesday (video above). "People reconnecting and realizing that there was a value to this brand that frankly, I think, we had forgotten and we'd lost a bit of our swagger."
What is Grimace, exactly?
Grimace, a fast-food marketing icon in the 1980s, has taken over McDonald's social media as part of an omnichannel marketing initiative promoting a special meal for the character's birthday.
After debuting in 1971 as "Evil Grimace," a mascot known for stealing McDonald's shakes, Grimace has evolved over the years into a much more friendly mainstay at the chain. But what exactly is the 'Purple Pal' that has seen a 2023 transformation?
"First of all, Grimace represents joy and happiness," Hassan said, describing the character as the "McDonald’s-land friend glue."
Hassan added that while there's a lot of debate over what Grimace actually is, "the lore is that he represents a taste bud."
Now the purple gumdrop-shaped figure has the opportunity to cook up additional sales for the Golden Arches.
McDonald's leans into nostalgia marketing
Grimace isn't the first reintroduction of a nostalgia-inducing McDonald’s character.
In 2015, the Hamburglar returned in an advertising campaign and looked more akin to a Magic Mike than a beef patty thief — and consumers didn’t seem too upset about that.
Fast forward to 2023, and Hamburglar will be seen throughout national marketing efforts once more, this time appearing more similar to the image crafted for the character during the 1980s, but with the 2023 standards of screen resolution.
"At the end of the day, our responsibility is also to drive the business and make sure we're showing up for our franchisees and growing the business," Hassan said, reflecting on the strategic business decision to reintroduce its brand characters to a younger audience.
And some analysts on Wall Street are convinced that the marketing effort toward Gen Z and millennials is gaining traction.
Guggenheim reiterated its Buy rating and "best idea" status for McDonald's. In a note, analyst Gregory Francfort called the franchise still the most "McCompelling" stock in the restaurant sector.
"We think McDonald’s success is the cumulative effect of years of investment in the asset base, improvements in the marketing message, and a digital engagement story that has legs," Francfort added.
And for anyone wondering when Ronald McDonald will get his own ad campaign, it likely won't be anytime soon.
However, "if it's what the fans are looking for, I think we're showing we can deliver on it," Hassan said.
Brad Smith is an anchor at Yahoo Finance. Follow him on Twitter @thebradsmith.
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