McDonalds + Tanmiah Food Company: The Future is Bright and it has Golden Arches

Steve Ross: Director – AVP, Tanmiah Food Company

Tanmiah Food Comapany (TFC) continues to show its strong capabilities, having received more approvals from the development team at McDonalds.

Since you last heard from us (July 2020), and as the markets have begun to show some signs of strengthening, work behind the scenes has been ongoing for TFC to be ready to supply McDonalds.

As it stands, TFC’s aim is to supply McDonalds KSA with their chicken requirements at full speed from the end 2022. The road to get to that point is relatively short and means a lot of preparation work but I am very pleased to say that TFC is making great progress and on track to deliver as planned.

We will supply 18 products, accounting for a third of our 2025 target.  Due to some delays caused by the COVID pandemic, McDonalds are pushing us to expedite the first phase. To date, our Production & NPD team have already received approval on six products: Wings, Value Patty, Grilled Chicken Patty, Mc Chicken Patty, Strips and Bone In Chicken. Some of these products have already launched, while the rest will enter the trial phase May-July, 2021.

McWings are now a permanent item in the UAE and Riyadh & Dammam will launch an LTO in July with a forecast demand of around 50,000 kilos per month. The Jeddah LTO is expected to be repeated in October 2021. Strips will roll-out in July.

In addition to these items, we are also awaiting imminent feedback on the “Accelerated Product Development” for Big Leg & Thighs, Sausage Patty, Grand Patty, Cajun Patty, Spicy Burger and the Mini Asian Patty.

Al Manarah warehouse (Riyadh, KSA) is currently being converted to become the focus production location for MacDonald’s products and work is underway to be fully commissioned by November 2021.

This represents an investment of approximately 48M SAR and is in addition to the significant investment being made in ADC needed to grow the fresh chickens to meet McDonalds’ requirements.

In the mean-time TFC has also been successful in gaining approval to supply the QSR giant from existing sites at both SFPC Riyadh, KSA and Perfect Foods Factory Dubai, UAE.

Both sites were successful on the first McDonalds audit attempt scoring 91% and 92% respectively, which as quoted by the auditor “was a great achievement, unheard of for first attempts!”

This is tantamount to the dedication and hard work of all team members within TFC. Not only does this mean we can supply products earlier but we will have built in contingency going forward.  As this project gains traction, the excitement grows. The expectation is that we will be in full supply across the whole KSA McDonalds estate with the first core item, The Value Patty in late 2021 / early Q1 2022.