McDonald's:- The Story of Lovin' It | Next Big Brand
Case Study

McDonald’s:- The Story of Lovin’ It

mcdonalds-next-big-brand
Pritish raj
Written by Pritish raj
[email protected] | Noida | Published on: July-11-2019 01:23 PM

I’m Lovin’ it. Each one of us has heard this but do you know the story behind the brand? Next Big Brand brings the story of McDonald’s to you.

Started the business as a hamburger stand, McDonald’s turns into a fast-food company. It was founded by American entrepreneurs Richard and Maurice McDonald, in San Bernardino, California, the United States in early 1940. Later on introduced the Golden Arches logo in 1953 at a location in Phoenix, Arizona.

Ray Kroc, joined the company as a franchise agent and proceeded to purchase the chain. McDonald’s had its original headquarters in Oak Brook, Illinois, but moved its global headquarters to Chicago in early 2018.

McDonald’s serves over 69 million customers daily in over 100 countries across 37,855 outlets as of 2018, remarked as the world’s largest restaurant chain. Although McDonald’s is best known for its hamburgers, cheeseburgers and french fries, they also feature chicken products, breakfast items, soft drinks, milkshakes, wraps, desserts, salads, fish, smoothies, and fruit.

The main source of revenue of The McDonald’s Corporation is the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. According to the report, McDonald’s is the world’s second-largest private employer with 1.7 million employees.

History

The siblings Richard and Maurice McDonald opened the first McDonald’s at 1398 North E Street at West 14th Street in San Bernardino, California. Ray Kroc modernize the business with the introduction of the “Speedee Service System”, putting the principles of the modern fast-food restaurant.

McDonald's-Next Big Brand

One of the Early Logos.
Source:- medium.com

The Golden Arches replaced Speedee (a chef hat on top of a hamburger) as the universal mascot. In 1965, Ronald McDonald was, appeared in advertising to target their audience of children.

McDonald’s filed for a U.S. trademark on the name “McDonald’s”, on May 4, 1961, and filed for a trademark on a new logo—an overlapping, double-arched “M” symbol. McDonald’s used a single arch for the architecture of their buildings, before the double arch.

Kroc later purchased the McDonald brothers’ equity in the company and began the company’s worldwide reach. The company has become a symbol of globalization with the spread of the American way of life. Its noticeable quality has likewise made it a continuous point of open discussions about weight and corporate morals.

McDonlad's- Next Big Brand

Oldest McD Store in Downey, California.
source:- wikipedia

Corporate Overview

McDonald’s restaurants spread across 120 countries around the world and serve 68 million customers each day. As of the end of 2018, It operates 37,855 restaurants worldwide, employing more than 210,000 people. It has a total of 2,770 company-owned locations and 35,085 franchised locations, which includes 21,685 conventional franchisees, 7,225 developmental licensees, and 6,175 foreign affiliates.

The Company owned several other chains including a majority stake in Chipotle Mexican Grill, Donatos Pizza and a small share of Aroma Cafe. McDonald’s sold Boston Market to Sun Capital Partners, on August 27, 2007. The company has increased shareholder dividends, making it one of the S&P 500 Dividend Aristocrats.

McDonald’s Corporation is ranked 131st on the Fortune 500 of the largest United States corporations by revenue. As per the record, in October 2012, its monthly sales fell for the first time in nine years and in 2014, its quarterly sales fell for the first time in seventeen years.

The company currently owns all the land, which is valued at an estimated $16 to $18 billion, on which its restaurants are situated. The company earns its revenue from rental payments from franchisees, accounting for one-fifth of the company’s total revenue at the end of 2015

The business model of the United Kingdom and Ireland is different from the U.S, in that fewer than 30 percent of restaurants are franchised. McDonald’s trains management at Hamburger University, Chicago. In different nations, the chains are worked by joint endeavors of McDonald’s Corporation and nearby governments or local bodies.

Employees are encouraged by McDonald’s Corp. to maintain their health, to relieve stress, and taking two vacations annually in order to reduce the risk for myocardial infarction as reported by According to Fast Food Nation by Eric Schlosser.

McDonald’s move its global headquarters to Chicago’s West Loop neighborhood in the Near West Side, built on the former site of Harpo Productions with 608,000-square-foot area. The McDonald’s former headquarters is located in Oak Brook, Illinois.McDonald’s moved into the Oak Brook facility from an office within the Chicago Loop in 1971.

Product

McDonald’s sells hamburgers, chicken sandwiches, various types of chicken, breakfast items, French fries, soft drinks, and desserts. The company has also looked to introduce healthier options including salads and vegetarian items, wraps and other localized fares. In September 2018, McDonald’s USA announced that they no longer use artificial preservatives, flavors, and colors entirely from various burgers sold in the U.S.

McDonald's- Next Big Brand

Source:- McDonald’s

Restaurants in several countries, serve soup. This deviation from the standard menu is a trademark for which the chain is especially known, and one which is utilized either to submit to territorial sustenance taboos or to make accessible nourishment with which the provincial market is progressively recognizable. In New Zealand, McDonald’s sells meat pies and in Western European countries, McDonald’s sells beer. In the United States and Canada, after limited trials on a regional basis, McDonald’s began offering a partial breakfast menu during all hours.

Restaurants Of McDonald’s

McDonald’s restaurants offer both counter service and drive-through service, with indoor and outdoor seating. “McDrive”, has different space for setting orders & paying.

McCafé is a café-style concept created by McDonald’s Australia, starting with Melbourne in 1993. In the wake of moving up to the new McCafé look, some Australian restaurants have seen up to a 60 % expansion in deals. Toward the end of 2003, there were more than 600 McCafés around the world.

McDonald’s introduced “Create Your Taste” (CYT) kiosks, where customers could choose all ingredients including the type of bun and meat according to the wish with a wait time of 10–15 minutes. When the food was ready, the host brought the food to the customer’s table, presented on wooden boards, different from the normal option. Later, Create Your Taste was replaced by a “Signature Crafted Recipes” program designed to be more efficient and less expensive.

Criticism

London Greenpeace, a small group entitled What’s wrong with McDonald’s? criticizing McDonald’s environmental, health, and labor record during 1990.

Phil Sokolof, a businessman who had suffered a heart attack at the age of 43, took out full-page newspaper ads in New York accusing McDonald’s menu of being a threat to health and asking them to stop using beef tallow to cook their french fries.

Though the company objected, the term “McJob” (a low-paying job that requires little skill and provides less opportunity for advancement) was added to Merriam-Webster’s Collegiate Dictionary in 2003.

Eric Schlosser’s book Fast Food Nation criticize McDonald’s practice of using political influence to increase its profits at the expense of people’s health and the social conditions of its workers.

Employees Relations

By CYT, McDonald’s has attempted to replace employees with electronic kiosks that perform various tasks from taking orders to accepting payments. In 1999, McDonald’s tested “E-Clerks” in suburban Chicago, Illinois, and Wyoming, Michigan, with the devices being able to “save money on live staffers” and attracting larger purchase amounts than average employees. 

According to The University of Oxford report, there was a 92% probability of food preparation and serving to become automated in fast-food restaurants. McDonald’s introduce “Create Your Taste” electronic kiosks, where customers could custom order meals. Some believed that McDonald’s would use the devices to cut costs for employing individuals.

As per the report of The Guardian revealed that 90 percent of McDonald’s UK workforce are on zero-hour contracts, making it possibly the largest such private-sector employer in the country. Anzalone Liszt Grove Research reported that approximately 84 percent of all fast food employees working in New York City had been paid less than their legal wages by their employers.

The McResource website guide employees to break their nourishment into little pieces, look for discounts for occasion buys, sell assets online for snappy money, and to “quit complaining”.

It’s internal telephone helpline help employees to obtain advice on work and life problems. The Roosevelt Institute accuses McDonald’s restaurants of paying less than the minimum wage to entry positions due to ‘rampant’ wage theft.

Glassdoor suggests that McDonald’s in the United States pays entry-level employees between $7.25 an hour and $11 an hour, with an average of $8.69 an hour. Whereas, Shift managers get paid an average of $10.34 an hour and Assistant managers get paid an average of $11.57 an hour. McDonald’s CEO, Steve Easterbrook, currently earns an annual salary of $1,100,000. His total compensation for 2017 was $21,761,052.

Operations in India

In  India, McDonald’s operated by a joint-venture company managed by two Indians.  While Amit Jatia, M.D. Hardcastle Restaurants Pvt. Ltd. owns and spearheads McDonald’s in the west & south India, McDonald’s restaurants in North & East India are owned and managed by Vikram Bakshi’s Connaught Plaza Restaurants Private Limited.

McDonald's- Next Big Brand

source:- Indiamarks

McDonald’s India source almost all of its products from the country itself. For this purpose, it local Indian businesses, which can supply them the highest quality products required for their  Indian operations. Fresh Lettuce is sourced from Pune, Delhi, Nainital, and Ooty; Cheese from Dynamix Dairies, Baramati, Maharashtra; fresh Buns from Mrs. Bector Foods, Phillaur, Punjab  & Khopoli, Maharashtra; Sauce from Mrs. Bector Foods, Phillaur, Punjab, Chicken Patties, Vegetable Patties, and Veg.Pizza McPuff from Vista Processed Foods, Taloja, Maharashtra. Dairy sourced from  Amrit Food, Ghaziabad, UP. All our suppliers are HACCP certified.

#mcdonalds #brandstory

About the author

Pritish raj

Pritish raj

Born and brought up in Bihar.
An engineer by education, the content creator, photographer and writer by profession and traveler and poet by passion.

Give me chaos, I'll create masterpiece :)

9113327413 | A-73, Hackerspace, Noida sector- 2 Noida UP 201301

Leave a Comment