Background of McDonald’s:
How It All Began
When Ray Kroc was on a sales call in San Bernardino, California, in 1954, the two brothers Maurice “Dick” and Maurice “Mac” McDonald were operating a prosperous restaurant. Although it appeared to be just another restaurant at the time, he noticed how well it was run.
They were able to concentrate on providing excellent and prompt service by specializing in a small menu. They concentrated on selling burgers, fries, and shakes at half the cost and time of their rivals, and they had a self-service counter to reduce the need for servers and waitresses. Every meal was made ahead of time and kept warm. They had a competitive advantage over their rivals thanks to all of these.
Their partnership started when Ray Kroc recognised an opportunity to expand McDonald’s throughout the United States. Following his purchase of the rights to franchise McDonald’s restaurants all over the nation, Kroc was able to successfully shift their company’s focus toward the mass market.
How to Create a Business Model
Kroc aimed to prepare the food consistently well and with similar procedures so that it would taste the same wherever it was served. He developed a methodical strategy that mandated franchisees adhere to McDonald’s fundamental values of quality, service, and value. This was in 1955, the year he established McDonald’s System, Inc.
Growth and Evolution
In 1955, Kroc launched his first franchised eatery. Later, he collaborated with Harry Sonneborn to create a financial framework that allowed McDonald’s to control the property on which its franchisees constructed their eateries. Three years later, they sold their 100 millionth hamburger, and in the fourth year, they quickly expanded to 67 outlets. Before Kroc acquired the McDonald brothers for $2.6 million in 1961, Sonnenborn was appointed the company’s first CEO in 1959.
A year later, Ronald McDonald, McDonald’s mascot, and the company’s recognisable golden arches were unveiled. With the launch of a location in Canada, McDonald’s began its internationalisation process and Kroc assumed the role of CEO. The inauguration of their store in Moscow’s Pushkin Square after the conclusion of the Cold War was another significant event in their history.
In an effort to get into the coffee market in Australia, they established their first McCafe. They saw exponential expansion in the years that followed, more than doubling their restaurant count in 1996. Additionally, they started more than 11,000 restaurants outside of the US.
McDonald’s was able to create a strategy with a successful business model by concentrating on advertising, franchising, and ongoing innovation.
They marketed it as a family-friendly destination in order to focus their marketing to families. Ronald McDonald, their mascot, was developed in part to appeal to younger audiences.
They have also made strides thanks to their franchising concept, which makes it possible for their neighbourhood to find fresh company ventures. Franchisees were the ones who first unveiled the recognisable Ronald McDonald and several of their well-known menu items (such Filet-O-Fish) to the public. McDonald’s was able to remain ahead of trends through franchising to local business owners and expanding outside of America, such as the globalisation movement in the 1970s.
Last but not least, McDonald’s was able to adjust to new trends by creating healthier alternatives including salads, fruits, and carrot sticks as well as “fast” and “convenient” meals since consumers had less time to spare and needed to eat more quickly.
You must be able to determine which business plan is most effective for your company, much like McDonald’s, which was able to develop a well-balanced business strategy. For instance, franchising is a wise course of action if you’re seeking development and expansion, and innovation keeps your brand current, especially in light of the quickly shifting preferences of your target audience.