INTRODUCTION
What is McDonald’s? McDonald’s, one of the famous American fast-food chains, is officially known as McDonald’s Corporation. Beginning their journey with just being a hamburger stand has later resulted in enormous profits and international acclaim. Founded 81 years ago by Richard and Maurice McDonald in 1940, it moved its headquarters from Oak Brook, Illinois, to Chicago in June 2018.
The History of McDonald’s
Before becoming a world-known fast-food company, the small outlet was run by the Maurice Brothers, who needed multiple technical types of equipment for their effective operation. They produced a limited number of items yet of the best quality, which at some point led them in search of a franchising agent who could take their revenues to the next level. So they turned this company into a franchise. This is when Ray Kroc came in as a franchise agent and established The McDonald’s System, Inc, in 1955, later known as McDonald’s Corporation.
But this success would only lead to other companies coming forward, bringing in the somewhat relevant concept in the market. So, around the 1970s, many other fast-food chains started showing up, like Burger King and Wendy’s. They tried to replace the already popular McDonald’s with all the marketing skills but couldn’t succeed. Finally, in the ’90s, The McDonald’s franchise had over 3,600 outlets in 58 countries. But with success came various difficulties, which eventually led to the downfall of the franchise as various advertisements and campaigns couldn’t do much to help.
By the beginning of the 2000s, the employment rate started falling, and numerous accusations related to the selling of unhealthy food were observed. To which they replied by promoting the production of more healthy food. As of now, McDonald’s has 35,000 outlets in 119 countries. Quite an amazing journey.
Facts and Figures
The highest revenue-generating food chain in the world was getting popular by the time. As per the records of 2018, it generated a record of serving nearly 69 million happy customers in over 100 nations and having around 37,855 and employing over 210,000 people across the world. The operations are such that there are 2,770 company-owned locations and 35,085 franchised locations. Gradually it started expanding its lines both domestically and internationally. The chain’s expansion was so rapid and swift that, as per the survey, it was said that a new McDonald’s was getting launched somewhere every five hours.
Field of Promotion
Talking about its promotional aspect, the clown character Ronald McDonald was introduced to attract customers. Many people worked for this role by getting dressed up the same as the clown. McDonald’s symbolized the golden arches and the basis of the first franchised restaurant that opened in 1952. But later on, when Mr. Kroc had the controls over the functioning of the franchise, he converted the previous logo into the two golden arches that resembled the letter ‘M,’ which would make it look professional. Now it’s been fifty years since it has been the official identity of McDonald’s. Eventually, as the popularity increased, it became everybody’s favorite fast food supplier.
The Effective Mantra
Every company needs a successfully functioning work mode, which is why McDonald’s ideal rule of ‘Speedy Service System’ helped provide hassle-free services to its customers. First, they closed the outlets and started self-service, popularly known as ‘McDonald’s Drive-Thru.’With this facility, now the customer could place the order at the windows. The bottom line was to minimize the costs. “Our whole concept was based on speed, lower prices, and volume,” Richard McDonald said.
Conclusion
Development and innovation in food chain companies is no easy task and involves loads of mental mapping and organizing. Yet if once succeeded, it can be as profitable as seen in the case of McDonald’s Corporation. With all the hard work, effective functioning, and getting through the criticism, McDonald’s has proved to be an example of a profitable business. This company has managed to lower its costs and generate greater profits at the same time. Moreover, they encourage their employees to work in the favor and best of the franchise’s customers.
Frequently Asked Questions
1. How did McDonald’s get its name?
Richard and Maurice McDonald opened the first outlet, but it originally got its name as Ray Kroc opened the first restaurant under McDonald’s in 1955.
2. Who owns McDonald’s?
Mr. Ray Kroc owns the McDonald’s Corporation since 1955 after he bought the franchise from the brothers Richard and Maurice McDonald.
3. Where is the first McDonald’s in the world?
The very first outlet was launched in San Bernardino.