At first, most people must have laughed at the idea of a chain of restaurants selling identical products all over the country, but little did they know that the genius idea that they had mocked would go on to revolutionise the business environment of the future. McDonald’s is now the international market leader for fast food, and has been ever since its pioneering first restaurant was launched in San Bernardino, California in 1948.
The original founders of McDonald’s, and the fast-food concept, were brothers Dick and Mac McDonald. In 1948, they modified their drive-in restaurant, creating the standard for the contemporary fast-food restaurant of modern times. ...view middle of the document...
In 1965, McDonald’s Corporation went public, and by 1966 was listed on the New York Stock Exchange. In 1967, its first restaurants outside of the United States were opened in Canada and Puerto Rico. 1968 saw the introduction of the company’s flagship product, the Big Mac. Throughout the 1970’s, McDonald’s became involved with a lot of charity work, establishing its own charity called the Ronald McDonald House, providing temporary housing for the families of seriously ill children. Kroc had always believed in giving something back to the community in order to make the world a better place. In 1973, McDonald’s added breakfast items to its menu. The Quarter Pounder was introduced in the subsequent year, as sales reached $1 billion. 1974 saw the opening of the first restaurant in the UK, in Woolwich, South London. In 1975, McDonald’s introduced “drive-thru” window service, which allowed motorists to order and receive food from their cars. Nowadays, this type of business accounts for around half of all McDonald’s sales in the United States. In 1983, Chicken McNuggets were added to the menu, giving customers an alternative to beef. Founder Ray Kroc died in 1984. Ronald McDonald Children’s Charities was founded in his remembrance to raise funds in support of child welfare. In 1989, McDonald's became listed on the Frankfurt, Munich, Paris, and Tokyo stock exchanges. Through the
990s smaller outlets known as “Express” stores were opened in hospitals, zoos, airports, and even on ferries. These outlets served a limited menu and lacked some of the amenities of larger stores. In 1996, McDonalds signed a 10-year agreement with The Walt Disney Company. This agreement has led to the introduction of restaurants at Disney theme parks, and the promotion of Disney films through McDonald's. Packaging is the primary source of advertising, along with the addition of limited edition products added to the menu. Examples include Pocahontas and The Lion King.
The McDonald’s Corporation is the largest worldwide franchised food service organisation. In the 1960’s, Ray Kroc franchised restaurants for the low sum of $950, demanding 1.9% of sales. As the success of Kroc and his organisation depended on the prosperity of the franchisees, this mutual interest was a key factor in McDonald’s success. In the USA, 87% of restaurants are owned and operated by franchisees. In the UK, this figure lies at just over 20%, with 119 of the 577 restaurants being franchised. It is McDonald’s’ intention that by the end of this year, franchised restaurants will represent over 30% of the total UK business. McDonald’s charge franchisees a levy on sales. This levy consists of a service fee of 4%, and a rent charge of 7%. Clearly, an increase in the number of franchised restaurants leads to the direct effect of an increase in McDonald’s’ revenues. McDonald’s can also boast that it is the largest retail property owner in the world.
Quality, Service, Cleanliness
McDonald’s use the...