McDonald’s Owner | How McDonald’s Franchise Conquered the World
Greeting to all! We are here with an article on a brand that is trending all over the globe. Whether it’s a party or a random outing, our first choice is McDonald’s. As we all know that McDonald’s corporation is the world’s largest seller of HAMBURGERS. McDonald’s restaurants are in about 100 countries. There are over 36,000 locations worldwide, of which 15% are owned and operated by McDonald’s corporation directly and the rest are franchisee-operated. But do you know how it all started? In this article on “McDonald’s Owner | How McDonald’s Franchise Conquered the World“, we will get to know about everything about McDonald’s.
Who is the McDonald’s Owner? How It All Started?
The McDonald brothers – Richard James and Maurice James were American entrepreneurs who founded the fast-food company McDonald’s in 1940 in San Bernardino, California. After starting, in 1948, they started the “Speedee Service System“. On May 4, 1961, McDonald’s originally petitioned for a U.S. brand name on the name “McDonald’s” with the depiction “Drive-In Restaurant Services”. After that their cousin, Dick, and Mac McDonalds got the hold over the brand. But, after getting petitioned and other riots, in 1961, Ray Kroc went into business with them.
Kroc built out a wide network of McDonald’s. He was recorded as the most aggressive partner and struggled a lot and became McDonald’s owner. He was born on October 5, 1902, in the US. He was married to Joan Kroc. After expanding the business Kroc and the McDonald brothers fought for the all-over control of the business. On June 13, 2016, McDonald’s confirmed plans to move its headquarters to Chicago’s West Loop. McDonald’s former headquarter is located in Oak Brook Illinois. Present McDonald’s CEO Chris Kempczinski made almost $10.8 million in 2020.
Early Struggle of McDonald’s Owner
Ray was a struggling salesman. Before coming into the partnership with Dick and Mac, he runs a business of making milkshakes machines. One day he got a large order of his milkshake machine from a small restaurant in California. He was fascinated. At that time McDonald’s brothers had a restaurant that served only Hamburgers, fries, and milkshakes. They served it in disposable packaging moreover, there was no sitting place for customers in the restaurant.
He examined that the business was rocking. They provide fast service, high –quality and affordable products to the customers. He felt interested and wanted to join the business. Ray convinced them to give him a contract so that he could grow the business through a franchise network. They had templatized the manner in which a McDonald’s café ought to be, including the yellow curves. Their USP was speed and McDonald’s had made the world’s first inexpensive food business.
The Actual Business
After so many efforts, Dick and Mac agreed and Ray quickly signed up for the business. He learned that he should target struggling middle-class couples. But ray was not making money even though the business was booming. He wants to do some own him to not innovations like milk powder instead of fresh milk for making milkshakes but the McDonald brothers refused his idea.
One day a person named Harry Sonneborn suggests running a business but he should own land and lease it out to the franchisees. This would help in steady income flow by being a landlord. After going through Ray’s books, he told him that we got the wrong business model. Investing in real Estates Harry Sonneborn solution McDonald’s risk of bankruptcy. It responds to a decline in sales with innovations. It responses to the lost consumers by returning back to their roots.
That was a revolutionary thought which turned McDonald’s franchise today is one of the world’s largest real estate owners. Finance- For the fiscal year 2018 McDonald’s reported earnings of US$5.9 billion with annual revenue of US$21.0 billion, a decrease of 7.9% over the previous fiscal year.
Key to McDonald’s Success
The corporation focuses on customer satisfaction by providing fast service, creating a clean environment, by providing higher quality products at affordable prices. McDonald’s changes with the market demands of the customers. McDonald’s Owner focuses on improving the restaurant’s image by showing transparency.
4 P’s:- Price, Product, Promotion, Place
Price- Low enough to be very attractive but not too low that consumers think quality impacted.
Product- What the consumer prefers. McDonald’s focuses on the taste and preference of the consumers.
Promotion- Contests, coupons, and public relations. It helps in the product promotion of the corporation.
Place- Creating the atmosphere according to customers’ desires by providing a clean and hygienic environment.
Role of advertisements in McDonald’s Success
The corporation markets towards families and children and presenting the restaurant as a fun place. The Ronald McDonald (clown statue sitting over the chair) character attracts children. The ads of happy meals with gifts for children make children happy too. The Happy meal idea completely hiked the revenue of the McDonald’s franchise. Through their ads, they attracted the elders too and later on they installed many playing parks outside their restaurants, where families can spend quality time.
“McHappy Day is the annual event at McDonald’s”, during which a percentage of days sale go to charity. It is the signature fundraising event for Ronald McDonald’s Franchise house charities.
To Wrap Up
McDonald’s has successfully ruled the food industry from its starting till today. This was the first food brand that was introduced to you as a child. Hopefully, you liked our article as much as you like McDonald’s meals. If you find this article on “McDonald’s Owner | How McDonald’s Franchise Conquered the World” insightful then, please let us know in the comment section below.
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