McDonald's

From ArticleWorld

Macdonald’s is known all over the world for its stupendous success in the field of fast food chain franchisees and the operational innovations introduced that were replicated by many other companies.

Origin

Dick and Mac McDonald brothers founded the first “McDonald’s” restaurant in St.Bernardino, California in 1940. However, it was only after their innovative idea of “Speedee Service System” in 1948 that the real growth of McDonalds took place. They developed the idea of preparing hamburgers on an assembly line, there by enhancing their speed of service, also assured a stable quality of hamburgers and reaping better profits. Thus the concept of fast-food was materialized. The hamburgers were generally accompanied by “french fries” and “milkshakes”. At the rate of 15cents for a hamburger, it was half the average dining cost of those days. It became an instant success and its fame spread by word of mouth. The popularity of the concept and the economy of preparation saw it grow in leaps and bounds and eventually they started giving away franchisees to local businessmen in their vicinity.

Growth

Ray Kroc offered to market the franchisee of McDonalds in places other than their home base of California and Arizona. By this time, the brothers had already enlisted eight franchisees. Ray Kroc bought the first franchisee himself and started his venture in Chicago in 1955. In 1960, the company McDonalds Corporation was formed by Ray Kroc, which eventually bought the entire business rights of McDonalds from the brothers. Since then the McDonalds chain is known as Ray Kroc’s’ company.

Operations

The operations of McDonald are spread over 122 countries totaling over 31,000 outlets worldwide. The McDonalds franchisee system is unique in the way that in addition to the franchise fees and supplies, it also collects rent in proportion to the sales. The McDonald’s restaurants are usually furnished pleasantly and have a playing areas and a good ambience with indoors and outdoor sitting arrangements according to the locale. Some innovative ideas like Walk-Thru services in downtown outlets and McDrives have also been incorporated on highway outlets. Aroma Café, Mexican Grill are also operated by the McDonald’s in addition to its own chain.