For years, McDonald’s and Burger King (BK) have been the world’s two largest and most successful fast foodchains. Both have battled out all these years over their operational differences which form the core of their corporate culture. The “Doing It All For You” (McDonald’s) vs. “Having It Your Way” (BK’s) stems fromtheir respective production methods. McDonald’s “Made to Stock” vs. BK’s “Made to Order” also originatefrom the differences in their respective processes.Exhibits 1 and 2 show the Process Flow Diagrams (PFDs) of McDonald’s and BK respectively. Exhibit 3 provides a detailed comparative analysis of the PFDs of these two fast food chains. The main operationaldifference between ...view middle of the document...
McDonald’s menu “Less product more often”offers standardized burgers. This cost of complexity is a huge cost driver for BK.The “dressing process” of McDonald’s is standardized with lever based dispensers and portion controlledcondiments. In BK, dressing is done by humans using plastic squeezed bottles without pre-measured quantity.This is where McDonald’s is ahead of BK as can be seen from the statements – BK spends 1.1% of their sales
The concept of the strategy and the operations of delivery system are unified as is commonly true in service systems. In a very real sense, the operations strategy is the strategy. To be sure the basic strategy must reflect coordination with advertising and marketing, financial plans and budgets, and so on. But if the operation strategy fails, the concept does too it is the key to the success or failure of the entire enterprise.
The implementation of the operations strategy must reflect the subtle differences that each enterprise’ strategy implies. Therefore, we need to ask the how the differences between the strategies of McDonald’s and Burger King are implemented in their operations strategies. How do the processing systems take account of these differences? How has the technology employed been adapted to the strategy? How do the control systems reflect the differences? Later, we will also consider how Benihana’s operations strategy is designed to achieve the seemingly anomalous objectives of fast standardized food, large average check, exotic surroundings, and a show.
The two hamburger fast food giants seemingly have similar strategies – high volume; low prices; limited menu; fast, courteous service; and controlled quality. But Burger King has appealed to differing consumer preferences with its Have It your Way slogan. The customization of Burger King’s product is centered on pickles and lettuce – the dressing of the burger not on a fundamentally wider menu choice.
Otherwise, Burger King emulates McDonald’s with a production line approach to food service.
The relative positioning of the two systems in terms of the product – process grid is shown in figure....