The Big Flop - McDonald's Arch Deluxe: The Big McFlop with Rachel Dratch and Jared Freid | 16

Episode Date: January 8, 2024

With their popularity waning in the mid 90's, McDonald's became concerned that they weren't pandering to adults enough. So they did the very adult thing of having a middle-aged crisis, and st...arted spending too much money on something they didn't need. After pouring hundreds of millions into the fryer developing a "burger for adults," McDonald's stock prices dropped by 70%. The golden arches were tarnished for the first time in decades...and not even a dancing Ronald McDonald could help.Comedians Rachel Dratch (Saturday Night Live, 30 Rock) and Jared Freid (Jared Freid: 37 & Single, JTrain Podcast) join Misha to digest the massive marketing mishap of McDonald's Arch Deluxe.Follow The Big Flop on the Wondery app or wherever you get your podcasts. You can listen to The Big Flop early and ad-free on Wondery+. Join Wondery+ in the Wondery app or on Apple Podcasts.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Transcript
Discussion (0)
Starting point is 00:00:00 Wondery Plus subscribers can listen to The Big Flop early and ad-free. Join Wondery Plus in the Wondery app or on Apple Podcasts. It's May 9th, 1996. Location? Radio City Music Hall, New York City. The decor dazzles, the music swells, and out come the glamorous Radio City Rockettes, dressed as toy soldiers,
Starting point is 00:00:36 kicking their way across the glittery stage. But they're not alone. McDonald's mascot, Ronald McDonald, is arm-in-arm with the fabulous dancers, dressed in a blue tailored suit, keeping step along with them. His fancy oversized red shoes kick up, then down, up, then down. His golden bow tie catches the light. The bizarre scene delights the audience, but the McDonald's executives watching are just hoping this expensive stunt pays off. Because at this point in time, McDonald's, the restaurant giant, is somehow
Starting point is 00:01:12 shrinking. Its sales and reputation have been declining at an alarming rate. For too long, they imagine, adults have viewed the brand as primarily catering to kids. So it's time for a rebrand. McDonald's will spend more than $200 million launching an adult only burger, setting off one of the most embarrassing marketing disasters in fast food history. Dressing up their famous clown mascot and making him dance is just the beginning. We interrupt regular programming for this McDonald's commercial break. Okay, everyone, this is our great new taste of McDonald's, and we need a name for it. The new Arch Deluxe. McDonald's reportedly spent at least $150 million
Starting point is 00:02:05 advertising the Arch Deluxe. It's got, well, here you go, cheese, pickle, onions, and Arch sauce, whatever that is. We have a very special guest today. This is Jane's dad, and he is the manager at McDonald's. Do you know Ronald McDonald? Yeah, I know Ronald, okay. Do you make free food?
Starting point is 00:02:22 Do you make the food? Yes, I get to make Big Macs. I even get to make the Arch Deluxe. We are on a sinking ship. From Wondery and At Will Media, this is The Big Flop, where we chronicle the greatest flubs, fails, and blunders of all time. I'm your host, Misha Brown, social media superstar and known for shaking my double cheeseburgers at Don't Cross a Gay Man. And today, we're digesting McDonald's biggest nothing burger,
Starting point is 00:02:59 an attempt at a sophisticated sandwich line for adults that customers didn't have an appetite for. Put on your fanciest bibs and open wide for the Arch Deluxe. Hello, I'm Emily and I'm one of the hosts of Terribly Famous, the show that takes you inside the lives of our biggest celebrities. And they don't get much bigger than the man who made badminton sexy. OK, maybe that's a stretch, but if I say pop star and shuttlecocks, you know who I'm talking about. No?
Starting point is 00:03:43 Short shorts? Free cocktails? Careless whispers? Okay, last one. It's not Andrew Ridgely. Yep, that's right. It's Stone Cold icon George Michael. From teen pop sensation to one of the biggest solo artists on the planet, join us for our new series, George Michael's Fight for Freedom. From the outside, it looks like he has it all. But behind the trademark dark sunglasses is a man in turmoil. George is trapped in a lie of his own making with a secret he feels would ruin him if the truth ever came out.
Starting point is 00:04:16 Follow Terribly Famous wherever you listen to your podcasts or listen early and ad-free on Wanderie Plus on Apple Podcasts or the Wondery app. On our show today, we have the legendary Rachel Dratch, a former SNL cast member and current host of Woo Woo with Rachel Dratch. And we have Jared Freed, a stand-up comedian and host of two podcasts, You Up and The J Train. Welcome to the show, guys. Hi. Hi. Thank you for having me. Nice to be here.
Starting point is 00:04:55 My first question that I have is, how did your families treat fast food growing up? Did you eat it? Were you not allowed to eat it? Oh, like a drug dealer hanging out in an alley. You associated with him only when you were going to be bad. It was like the worst thing we could ever do for ourselves, but we were still, you know, on occasion you'd get a little treat. Okay. We did not have the health consciousness that you did. There was nothing shameful. I grew up in the seventies, so maybe it was different back then. But not like I was, you know, chowing down on McDonald's every day, but it was like the treat. It was like the, yay, we're going to McDonald's kind of thing. I'm so envious of this perspective. Like to me,
Starting point is 00:05:38 like every time I drive past McDonald's, I just look away. You know, it's like my mistress that I can't even make eye contact with. Like, it's like, I only know McDonald's french fries from a parking lot. Like, I've never eaten in the McDonald's. It's always like hurriedly, hurriedly and furtively. No, wait, where did you grow up? Just curious. Outside of Boston. Wait, me too.
Starting point is 00:06:03 Where are you from, Rachel? I'm from Lexington. I'm from Needham. So we're neighbors. Get we're neighbors yeah wait a minute wait a minute rachel dratch that's my mom's maiden name oh my god wait a minute cousin rachel i'm your cousin um no so the mcdonald's we went to was in burlington near the burlington mall yes so i don't know how familiar i've eaten in that parking lot. Oh my God. Have you in that packing lot?
Starting point is 00:06:27 Have you eaten in that packing lot? First, let's start at the beginning. Okay. We're going to elevate our knowledge base and our palates with the elegant tale of the Arch Deluxe Burger. It's the mid-90s, fast food is booming, and McDonald's is the most recognizable brand in the space. Domestic U.S. sales are nearly $16 billion in 1995,
Starting point is 00:06:50 and that makes McDonald's the largest restaurant chain in America. And leading this behemoth is a man named Ed Renzi, established curmudgeon and president of McDonald's USA. Just so we understand what kind of fella this dude is, in 2022, he appeared on Fox Business to announce his crusade against corporate wokeness. Ahead of his time. Yeah.
Starting point is 00:07:14 It's crazy. So, I mean, in the 90s, Renzi lives and breeds McDonald's. It sounds like an unhealthy lifestyle, but he's been working there since his 20s. First as a grill cook, then as a manager, then a district manager, and so on. By 1984, he is president and COO.
Starting point is 00:07:36 Despite McDonald's undisputed hold over the fast food industry, behind the scenes, the Golden Arches might be showing some cracks. Wendy's, Burger King, and even Taco Bell are eating McDonald's lunch. Although their market share is smaller than Mickey D's, they are growing faster. And when growth flatlines, companies who are doing just fine go into panic mode. And that's exactly what Ed Renzi and McDonald's do. All right, what would you do?
Starting point is 00:08:07 Oh, I made a face of, I don't know anything about business. This is why I'm an actor. That was my face. Yeah, well, their solution is just to release a new product. But the company, for all its successes, But the company, for all its successes, has plenty of not-so-successes, too. So to get a better sense of what the fast food giant is willing to put out to the public, let's play a game. Now, McDonald's has had a few flops over the years. In this game, I'll tell you the name and features of a real item,
Starting point is 00:08:51 and you decide if it's a McDonald's McFlop or another company's embarrassing mistake. Ready? Okay. All right, the first one. This burger featured a reduced fat patty, thanks to it being one-tenth seaweed. What? Jared, McFlop or not? I'm going to go with not. I think that's another company. No, this is a McFlop.
Starting point is 00:09:09 Wow. In 1991, amidst a national fear of anything greasy, McDonald's introduced the McLean, a sandwich built around a beef and carrageenan seaweed extract patty. Okay, I do remember the McLean, but I didn't know, and nor probably did anyone else said there was seaweed involved, but do you remember the McLean? I just,
Starting point is 00:09:30 I'm so surprised the idea of seaweed being like an announced thing. I, I don't like, I can't believe people knew that. That's like 91 is before like Americanized sushi before we like had the Philadelphia roll. So it's, it's surprising to me.
Starting point is 00:09:45 That's why. You see life as pre and it's surprising to me. That's why. You see life as pre and post Philadelphia roll, right? That's right. Yes, that's how you mark time. Yes. Okay. All right, second one. This decadent burger, available only in Japan,
Starting point is 00:09:58 featured foie gras and truffle butter. Rachel, McFlop or not? I'm going to say it was McDonald's in Japan. No, it was not. But it was a real burger. Damn it. Wendy's. Wendy's.
Starting point is 00:10:11 Wendy's introduced the foie gras burger to Japanese locations in 2011. Yeah. But after PETA raised concerns, it was gone a year later. All right, third one. This spooky burger featured a barbecue sauce flavored bun that
Starting point is 00:10:29 was all black. Jared, McFlop or not? I remember this is a McFlop. I remember this. It is not a McFlop. No! It was another brand, right? But it did absolutely happen. It was Burger King that released their Halloween Whopper in fall of 2015. The look of it was cool. It was cool looking. It looked Halloween Whopper in fall of 2015.
Starting point is 00:10:45 The look of it was cool. It was cool looking. It looked like it glowed in the dark. Yeah. The flop of it was it turned customers off because the food coloring combo turned their poop green. Oh. Spooky. See, to me, they could have made that into like the toy.
Starting point is 00:11:02 Oh, no. Listen, you got to up your marketing with another marketing. You got to go, oh, green poop. How do we play this? I think they could have really had something there. All right. Last one. This island inspired burger was just a pineapple ring covered in cheese.
Starting point is 00:11:21 Rachel, McFlop or not? Not. What? Wow. This is a McFlop or not? Not. What? Wow. This is a McFlop. It was called the Hula Burger. We're like 0 for 4. It was proposed in the 1960s by then-McDonald's CEO Ray Kroc for Catholic customers who avoided meat on Fridays and during Lent.
Starting point is 00:11:38 So that was pre the McFish. Well, there was already an option at one franchise, the Filet-O-Fish. Okay. But Kroc, he didn't want to sell the Filet-O-Fish nationally because he didn't like the smell. And he thought that customers would prefer a ring of pineapple on a bun. Wow. He was wrong. All right. So to figure out exactly what they need to fight their slowing growth, McDonald's funds some market research and focus groups to get at the heart of the problem. Their research concluded that while three-quarters of customers thought McDonald's had great food for
Starting point is 00:12:17 kids, only 18% thought they had the best food for adults. So McDonald's believes the next big thing is a burger for adults, whatever that means. Ed Renzi hopes it'll help make McDonald's the favorite place for grownups. All right, we are creating a burger for adults. What would you put on it? Taxes. Responsibility. Deep regret. Deep regret.
Starting point is 00:12:43 30 extra pounds. Wr regret. 30 extra pounds, wrinkles. Yep. Well, McDonald's moves ahead with their project, and they decide to call it the Arch Deluxe. So they hire Chef Andrew Salvaggio to create it, who beats out 12 other chefs for the gig. So Chef Andrew comes from a fancy foodie background. It's not really a McDonald's type. Reports put the development budget he had for this as high as $100 million. But that's not like a budget to go like make more foie gras. This is like, hey, here's your budget to make something that will cost nothing across the country.
Starting point is 00:13:21 Like you have to be more like a supply chain person than a chef. Yeah. Like, where are the pickles coming from in Sacramento? But that's exactly what he did. He got to work creating the most adult burger in town, no expense spared. So he trialed 30 different mustards. His bakers invented custom potato rolls.
Starting point is 00:13:40 He obsessed over salt and pepper ratios. And then almost a year later, he emerges from his food lab covered in mustard stains, I'm assuming. That's like me coming out after writing my bits covered in mustard. But he emerges with this beautiful new Arch Deluxe. It's a burger with lettuce, tomato, and bacon. Except the bacon is circular. The one thing I do remember is the circular peppered bacon. What?
Starting point is 00:14:12 I remember that was like a weird oddity that they had circular, not Canadian bacon. Oh, I've never tried that. Circular, regular bacon. Tell me about the sauce. The sauce is a Dijonais. Okay. A blend of Dijon mustard and mayo. I mean, you can make it at home in 30 seconds.
Starting point is 00:14:30 That was new back then too, right? What was the commercial? Do you remember the commercial? D, D, D, Dijonais, Nays, Nays, Dijonais. I can't believe it's Nays, Nays, Nays. Oh my God, we are Americans. I love this. So, I mean, what are your thoughts on this burger,
Starting point is 00:14:48 especially knowing it cost $100 million to create? I'm thinking the mustard, because they're trying to make it adult. So what would kids not like that adults might like? So then they go mustard, because kids don't want mustard on their burgers. Kids want sweet, sweet ketchup. Maybe that makes it more sophisticated
Starting point is 00:15:07 in their minds. But I don't understand the hundred million people will put so much money into certain things and then be like, I will not spend another dime there. So the idea that someone's like, let this chef cook. Put them in the kitchen.
Starting point is 00:15:23 Give them all the finest appliances. And then someone's like, can I have health insurance? And they're like, let this chef cook. Put them in the kitchen. Give them all the finest appliances. And then someone's like, can I have health insurance? And they're like, get out of here. Shoo, we got to make the best burger of all time. You know? Yeah. And the McDonald's execs, they thought they made the best burger. And they basically said the Arch Deluxe is ready.
Starting point is 00:15:41 Right. So per CEO Ed Renzi, quote, two thirds of our adult customers who have already tried the Arch Deluxe like it more than any other burger on the market today. He's not taking into account that you have to walk into a McDonald's. Like your reputation precedes you. They could make the best burger this guy's ever made in his entire life. You still have to get over the hump of like, walk into the play place to have a burger that costs this much more than another burger. I agree. And that's a through line on this podcast of people just like trying to step
Starting point is 00:16:16 outside of just like, just stay in your lane and you'll probably be okay. But Ed Renzi, he had a vision. And now it was time for McDonald's to execute the most expensive promotional strategy of all time for their new burger line. And this is where things really, really take a turn for the bizarre. Or should I say, this is when the circular bacon hits the fan. So McDonald's had the challenge of selling their new sophisticated burgers to adults in their restaurant that was mostly enjoyed by kids. Remember, this is where you get your happy meals, enjoy the play place, possibly run into Grimace and the Hamburglar. So this marketing campaign kicks off with a totally logical unveiling, a Radio City Music Hall extravaganza.
Starting point is 00:17:17 Really? Featuring Ronald McDonald performing in a kick line with the Rockettes. I love it. So McDonald's first hires an edgy advertising agency, Fallon McGilligit, which embarks on a campaign called Looks Like McDonald's is Becoming a Little More Grown Up. So let's watch this grown up sexy ad for a hamburger. Oh, I can't wait.
Starting point is 00:17:43 It starts with a full quarter pound of beef. Oh, yeah. Our chef's sauce on a bakery soft roll. McDonald's arch deluxe. If it were any more grown up, we'd need to check your ID. What? It's a balance for the grown up taste.
Starting point is 00:17:59 I just love, yeah, the dripping sauce off of the side. The sultry music. Okay, so sometimes you might see it coming up the pike that it's going to be a flop because it sounds like a horrible idea. This isn't like, you know, the McRib, which sounds even more preposterous, right? This is like just the grown-up burger. I don't know.
Starting point is 00:18:20 Maybe that commercial would have drawn me in. The McRib is surprising that it works and then it's not. Because it's like, yeah, I would eat the McRib in a room that was dark by the light of my fridge. Here we go again. You know, like, yeah. Here we go again. You know what I'm saying? They should have gone, you can't go deluxe.
Starting point is 00:18:37 You got to go shameful. Like the McRib. Really lean in. Right. Shameful. Right. 2 a.m. You know, like that.
Starting point is 00:18:45 The McDeluxe, you know, I don't know, like too fancy for me. I agree. They even go in a really strange direction. But what was even weirder is like they were going so far to make sure that the Arch Deluxe is for adults that some of the ads are basically just saying kids will hate this burger, which is a really strange way to sell your food. And we have another clip. We're not shorties, act like you know. I'm the man, I run the show. We're large, on this microphone.
Starting point is 00:19:17 The call us kids, believe we're grown. Okay, guys, you're grown. Want an Arch Deluxe? Yeah! I'm in shock. I mean, those kids were cute. It's the craziest commercial I've ever seen. Crazy for us, but
Starting point is 00:19:31 franchisees, they were outraged. They can't fathom why McDonald's is depicting frowning children who don't want their products. Oh, right. And so Ed Renzi and McDonald's execs panic, and they hire a second marketing firm, DDB Need Him. For my hometown.
Starting point is 00:19:49 Oh, yeah. Now, these guys produced more ingredient-centered ads with Chef Andrew. Okay. So in one ad, he's chatting with a bowling team about the Crispy Chicken Deluxe, another offering off of McDonald's adult-only menu. You know, when I created my Crispy Chicken Deluxe, I knew you'd love it. That crisp chicken filet, it's right up your alley. McDonald's Crispy Chicken Deluxe. Hey, I have my name on my shirt, too.
Starting point is 00:20:17 I made it for you. I noticed they showed a metal fork, which you're not going to find. No. Like a fine silver fork and knife cutting the product, which you won't find anywhere near a McDonald's. So they're really trying to sell the upscale nature of the whole thing. Rachel, he's a chef. He brings his own, like a professional pool player.
Starting point is 00:20:38 He brings a package and he screws it together. No, I know I'm not supposed to say this because I'm supposed to be mocking this as the big flop, but if they had that now, I might be like, okay, so when I'm stopping over to get my kids something on this road trip, then I can actually find something because I've been sold by the idea of the sophistication and the healthier ingredients because they used a silver fork.
Starting point is 00:21:02 Right. I mean, that guy is not going to be booked as the next, you know, Jared Fogle. Oh, God. That's a whole other podcast. Let's hope his only crime was the Arch Deluxe. In this case, he's A-OK in my book. Yeah.
Starting point is 00:21:20 Oh, man. So let's get to one last cringy set of ads. So these come from the hip Fallon McElligot agency, and they have Ronald McDonald adulting. Oh, I want to see this. So, I mean, he's playing golf. He seems to be running things at business conferences. Please.
Starting point is 00:21:39 Ronald had a talk with the COO. He's now a Republican. These woke losers. Oh, no. He's dancing at a nightclub. We's now a Republican. These woke losers. Oh, no. He's dancing at a nightclub. We actually have a clip, so let's watch a moment from this truly bizarre McDonald's ad.
Starting point is 00:21:52 And if you want to describe what we're seeing as we're watching it. Okay. We're in a nightclub. There's like Saturday Night Fever. He's like on the floor like john travolta yeah yeah he's running it with colored lights he's got a girl in his hand oh my god he's got moves
Starting point is 00:22:14 looks like mcdonald's is becoming a little more grown up starting may 9th Starting May 9th. Whoa. So McDonald's even commissioned an Arch Deluxe dance called the Deluxe Line Dance, created by celebrity choreographer Debbie Allen. Like, fame, Debbie Allen. Whoa, the money. The money going into this. They really.
Starting point is 00:22:37 Yeah, so they wanted to try to capitalize on the Macarena dance craze at the time. Okay, okay. And they even hosted a pep rally with a live performance of the Village People at McDonald's HQ. So I mean, like, no wonder why this marketing bill was so high, right? Oh my gosh.
Starting point is 00:22:53 Who are they after? Some of this ad campaign feels like they're looking for kids who want to be adults. Oh, that's a good point. What 30-year-old was like, oh, the dance, I'm doing the McDonald's deluxe dance. Like I'd be the biggest loser ever, right? Yeah.
Starting point is 00:23:10 And it didn't work because the campaign turned out to be a costly disaster. Oh, no. So counting development and all of the weird marketing. I'm scared. At least $200 million was spent. No. Possibly far more. Now, the only question was, would McDonald's sales actually improve?
Starting point is 00:23:29 McDonald's is clearly in a pickle. I see what you did there. Their sales weren't cutting the mustard. Oh! Their competition is starting to catch up. Oh! They were not relishing the moment. This is not my strength.
Starting point is 00:23:41 Sales were not well done. That was bad. Oh, I like that. So, yeah, spoiler alert, the campaign doesn't work because McDonald's has completely misread the room. Oh, no. So, by 1996, both Burger King and Wendy's have been selling burgers with lettuce, tomato, and guess what? Bacon for years. For loyal McDonald's customers, young men aged 15 to 35, the Arch Deluxe seems too expensive and unnecessary. So the Arch Deluxe could set you back as much as $2.50, which is about $5 now.
Starting point is 00:24:16 For comparison, in 1996, a Burger King Whopper is a whopping dollar and a half cheaper. So you can buy two of those instead of one of those circle bacon sandwiches. I mean, the Arch Deluxe. Yes. So here's a sick burn quote from Denny Lynch, a vice president at Wendy's at the time. Quote, McDonald's is spending $100 million to get Americans to believe they are the only ones with a product that every other chain already has. Wow. Shots fired.
Starting point is 00:24:46 Charmed. Fiery redhead. Yeah. So sales haven't bounced back with this new promotion. Stock prices are actually slipping. And keeping special ingredients in the restaurants like the Dijonais is getting expensive if the customers aren't buying the Arch Deluxe.
Starting point is 00:25:02 Clearly, nobody is ready for fast, convenient, and fancy at the same So it's September, 1996. McDonald's officials had predicted the Arch Deluxe would make them $1 billion in the first year. Whoops. Because the numbers were so bad, McDonald's was too embarrassed to share them. Sales of the Arch Deluxe were never revealed. But we do know that they dragged down stores' overall sales for that quarter, and the reviews were worse.
Starting point is 00:25:54 LA Weekly devours this burger and leaves no crumbs. So, Rachel, would you mind reading this write-up? The potato bun, puffy with air, instantly gummy in the mouth. Such a peculiar sensation that I went yuck for some time after in remembered displeasure. If adult is supposed to signify spice, resilience, texture, it's interesting that the bun, which looks like a crusty roll, is actually softer than the softest tissue paper sold as squeezably soft. Wow.
Starting point is 00:26:27 I think they mean Charmin. So wait, now what about this? What if the reporter was not used to the potato bun? Because now the potato bun is all the rage at Shake Shack. That's what people want. The soft, pillowy, Charmin-like bun. So I wonder if maybe McDonald's was actually ahead of its time and this reporter was not used to the pillowy texture of a potato bun. I didn't know Rachel Dratch was such a counterculture,
Starting point is 00:26:57 Joe Rogan type. I'm putting a lot of thought into this. I know. I didn't know. I left comedy out the window. I'm just talking business and marketing. I care about this product. Wow. Why did it fail? This is just unbelievable. You're right. So the company's president, Edward H. Renzi, he senses disdain from his franchise owners. So he sends out a passiveive memo to all 2,700 owners.
Starting point is 00:27:26 The memo says, quote, only those who expected a miracle were disappointed. Oh, no. He's the original Facebook commenter. Like, no one takes the loss anymore. Like, oh, you guys thought this was going to be a big deal? Oh, you thought our $200 million investment was going to produce results? What are you guys, crazy? He also says that he reassures them
Starting point is 00:27:49 that the extra cost of the deluxe makes up for people buying less of the other menu items. Okay. But people weren't buying the large deluxe. He also reminds them that this food wizard, Chef Andrew, is busy making more magic in the kitchen with chicken and fish deluxes. So...
Starting point is 00:28:06 When Chef Andrew comes out of that kitchen, you guys are all gonna be sorry. Yeah. Well, by 1997, it's clear that slow sales figures, they aren't a fluke. It's not just the Arch Deluxe that's not selling well. It's everything. Now, you don't blow through hundreds of millions
Starting point is 00:28:25 of dollars and then just return to normal like nothing happened. Heads are going to roll. In the wake of the Arch Deluxe failure, Resney abruptly retires from McDonald's at the end of 1997. Golden parachute, got out of there. Got out of there. Following that, the company undergoes a corporate restructuring and the Arch Deluxe, it limps along, appearing in fewer and fewer locations until it's officially retired four years later in 2000 after all franchisees drop it. So despite ditching the Arch Deluxe, McDonald's stocks, they keep plummeting. By 2000, shares of McDonald's are abysmal. They go from about $40 a share to under $15. This was the time when folks are opting for healthier eating, organic and local.
Starting point is 00:29:12 I mean, this is a changing of the guard. That's when they should have went straight nostalgia. Just give me that greasy burger. Yeah. Well, that's when like Five Guys comes out and people are like, have you seen Five Guys? And you're like, this isn't like better for you. Like this is horrific for you. But at the same time, it's like, oh, this is what I'm looking for. Shakes and burgers. Five Guys almost did like McDonald's better than McDonald's did it.
Starting point is 00:29:42 So let's do a little where are they now? Chef Andrew continued developing sandwiches. Living on Dijonais Island. Yeah. He left McDonald's in 2002 and went over to Quiznos. Oh. Cashed another check. Cashing those checks. He also then helped develop ideas for Smashburger for a decade.
Starting point is 00:29:59 Oh, that caught on, right? Yeah. Yeah, sure did. Ed Renzi continues to stay active as well. He took a break from fast food to own a NASCAR team. Of course he did. Good for him. Good for Ed.
Starting point is 00:30:12 That tracks. And remember, since 2022, he's taken it upon himself to fight the real enemy in the boardroom, woke culture. He's all over Fox Business. As for McDonald's, in 2002, they go back to doing what they were always meant to do, be an easygoing place to grab a bite. McDonald's shifts its focus back to the family-friendly market, and it puts more resources into happy meals and play areas. The dollar menu is introduced, offering affordable options for families and folks on a budget. I mean, what's more adult,
Starting point is 00:30:44 and dare I say sophisticated sophisticated than responsible budgeting? That's right. Also, I read that Ronald, from his clubbing days, had to enter rehab. And he's recently gotten out and he's doing very well. He only does fries now. Shame fries. In 2003, McDonald's is saved by Justin Timberlake's dulcet tones and some branding. There we are.
Starting point is 00:31:11 Yes, the I'm Loving It campaign. Still one of the most recognizable jingles ever. The writing of and the credit for this jingle is highly disputed. Really? But a long form song version was recorded by Timberlake and released way before it started showing up in ads. There's even a music video. And that brought everyone back? That and the pancake buns.
Starting point is 00:31:32 The McGriddle. Wasn't that a big part of it, too? Yes. So I'm loving it. That was pure gravy for McDonald's, or should I say the Dijonais. Okay. So the company's stock price, they did. They soared from about $15 a share in 2003 to almost
Starting point is 00:31:45 300. Oh, whoa. In the next two decades. Oh my gosh. And so you better believe shareholders are loving that. Yeah. You know what that shows me though? You can't force a successful wave.
Starting point is 00:31:55 It's like trying to create a character or a standup thing or whatever. You can't just sit at a computer and be like, I'm going to come up with the thing that's going to really catch. It has to just strike you. Yeah. Right. Just like, so listen to that come up with the thing that's going to really catch. It has to strike you. Yeah. Right. Just like, so listen to that, corporate America. It's got to be a passion.
Starting point is 00:32:10 Yes. So here on the Big Flop, we do like to always end on a positive note. Okay, good. So can you think of any silver linings? Did McDonald's make it? Their CEOs are doing fine. Oh, good. Thank goodness.
Starting point is 00:32:27 They're doing just fine. Maybe it's like this. If you have an organic idea of something fantastic, then yes, go with it. But if you sit down with $200 million to try to force the next big thing, that's very difficult to do, as we've learned. Right. big thing. That's very difficult to do, as we've learned. I think every company should hire one comedian
Starting point is 00:32:47 who's on Instagram. And just, like, every time they're like, should we do this next move? Ahead of creativity, who tells you not to do too much or go too crazy. That's a good idea. And that's why Jared and I are offering our services
Starting point is 00:33:03 for $200 million to McDonald's to save them from their next Arch Deluxe. Can you believe what McDonald's is paying us for? I'm going to make up a dance for you. So now that you know about the Arch Deluxe, would you consider this a tiny little baby flop, a big flop, or a mega flop? It feels like a tiny baby flop in terms of the humiliation of it. But I'm sure with the money and the people actually in charge of it, it felt like a mega flop. But from a cultural perspective, it feels like a tiny flop. Like, oh, your menu item did work.
Starting point is 00:33:39 And you don't know all this backstory. It is a total baby flop. Here's the thing. Not one McDonald's has closed. Ed Renzi still goes on Fox Business and gives his opinions. No one's ever like, we won't talk to Renzi. He's the deluxe guy. Like, no, he's the former COO of McDonald's.
Starting point is 00:33:58 That's true. Anytime you talk shit on someone who has a lot of money, they go, yeah, but still rich. Still rich, bro. They're still rich, bro. And it's like, this is why we'll never find happiness. Well, on that note, thanks so much to our guests, Jared Freed
Starting point is 00:34:15 and Rachel Dratch for joining us here on The Big Flop, and thanks to all of you for listening. We'll be back next week with a flop that one of our guests was actually present for. It's Ashley Simpson's SNL fiasco. Bye. I was there. What a cliffhanger. If you like The Big Flop, you can listen early and ad-free on Wondery+. Join Wondery in the Wondery app or on Apple Podcasts. Prime members can listen ad-free on Amazon Music.
Starting point is 00:34:58 Before you go, tell us about yourself by filling out a short survey at wondery.com slash survey. The Big Flop is a production of Wondery and Atwill Media, hosted by me, Misha Brown. Produced by Sequoia Thomas, Harry Huggins, and Drew Beebe, with support from Tina Turner. Written by Anna Rubinova. Engineered by Andrew Holtzberger. Our managing producer is Molly Getman. Our executive producers are Kate Walsh and Will Malnati for At Will Media. Legal support by Carolyn Levin of Miller, Korzenik, Summers, and Raymond. Producers for Wondery are Matt Beagle and Grant Rudder.
Starting point is 00:35:45 Senior story editor is Phyllis Fletcher. Managing Producer is Ricky Wiebe. Music Supervisor is Scott Velasquez for Frizzin' Sink. Our theme song is Sinking Ship by Cake. And Executive Producers are Lizzie Bassett, Morgan Jones, and Marshall Louis for Wondery. We are on a sinking ship. We are on a sinking ship.

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.