Introduction McDonald’s was founded in 1955 by Mr. Ray. A. Kroc. The first McDonald’s was opened in Illinois. By August 2002, there were more than 30,000 McDonald’s in 121 places and countries all over the world, including Canada, the Caribbean, Europe, Central and South America, Australia, Japan, Korea, Southeast Asia, even Russia and China. It has the fastest growth rate in the restaurant industry.The secret of McDonald’s success is its willingness to innovate, even while striving to achieve consistency in the operation of its many outlets. For example, its breakfast menu, salads, Chicken McNuggets, and the McLean Deluxe sandwich were all examples of how the company tried to appeal to a wider range of consumers. ‘
- McDonalds introduced of brown paper bags with a considerable percentage of recycled content.
- Reduced solid waste and building a market for recycled products.
- New paper-based wraps that combined tissue, polyethylene, and paper to keep food warm and prevent leakage.
Why McDonalds is preferred over other fast food restaurants?
1. The food -Improving food perceptions was clearly absolutely critical to re-appraisal of the brand.
A grown-up menu for adults -Using only 100% chicken breast meat from approved poultry farms, it provides a diverse menu for adults. The breakfast is a fast and convenient way to eat. It was also vital to ensure that customers were provided with options that matched their tastes and wallets. More premium food was launched, both beef and chicken. The aim was to offer better products to build better impressions with the public.
Healthier Happy Meals for children- Parents wanted the Happy Meal to remain a treat for their kids — still to include a toy, for example — but were concerned about nutrition. The salt, fat and sugar content was managed to ensure that nearly 80% of Happy Meal combinations were not high in fat, salt and sugar as defined by the Food Standards Agency.
2. Makeover for the restaurants -Research showed that customers saw room for improvement in some aspects of the McDonald’s experience, so these were addressed with a series of investments.
An inviting new look The single most visible signal of change to consumers was the store re-imaging programme which began in 2006 and which completely changed the look and feel of the outlets. Out went the 1980s hangover combination of bright red, yellow and plastic. In came softer greens, purples and wood, more modern and contemporary furniture, materials and seating configurations. McDonald’s became as cool a place to hang out as any coffee shop.
Encouraging a new attitude -The business made a significant structural change by increasing the number of franchisees. Entrusting more restaurants to local entrepreneurs was a huge success, based on the simple premise that if it is your own business you tend to run a better restaurant. At the same time, focus on improving operating standards led to cleaner, more efficient and friendlier restaurants, while investment in new kitchen equipment enabled the serving of fresher, hotter food. This was complemented by improved communication to stores. The result was distinctly improved customer satisfaction scores. In addition, extended opening hours to reflect changing lifestyles saw more stores trade for 24 hours at least once a week. Key Threats
- lack of growth opportunities.
- newfound emphasis on healthier eating.
- Source increasing incidence of cancer, heart disease, and diabetes among the population
- McDonald outlets are everywhere, the dining experience is never special.
- Constant battle Burger King, Hardees and other fast food chains, which leads to an erosion of margins for everyone
- Alliances with toy manufacturers, while popular with consumers, do little for the bottom line because the cost to run these promotions can be quite expensive.
Click this link to see to the “10 year financial data of McDonald” that clarifies the growing trend and consumption of McDonalds. http://www.gurufocus.com/financials/MCD
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