The incredible reputation of McDonald’s is evident from the popularity of the brand among the masses, whether they love burgers or not. Ask anyone on the street about the significance of the name, and they can relate to it instantly as one of the most fast food brands across the world. The Chicago-based American fast-food chain has become synonymous with hamburgers or Big Macs, as the brand’s fans fondly call it. The company that started as a restaurant business evolved into one of the largest fast-food chains in the world, with its operations spread across 38,000 locations covering 120 countries. The way the company spread and held on to its popularity for more than 80 years as one of the most valuable brands in fast foods is simply amazing. Ongoing through McDonald’s company overview, you can gather valuable insights about the fantastic journey of the organization.
McDonald’s company overview
McDonald’s name crops up in all discussions about franchise business because of the sheer impact of the brand in the global market that has become a symbol of the franchise business model. Anyone citing an example about a franchise business in any corner of the world cannot help but take the company’s name. Today, the company belongs to the group of Fortune500 companies (Rank 157) that play a critical role in the global economy. It is a giant in the restaurant industry on various counts like employees and revenue.
What do the numbers say?
The company had 200,000 employees as of March 31, 2021, and it is the largest fast-food chain by revenue. Of late staff, shortages have plagued the company that recently announced raising wages. The company’s market value on that date was $167,112.50, revenue $19,207.80, and profits $4,730.50. The company’s share price as of December 30 is $268.49, with assets worth S52.6 billion.
According to the Forbes list, the company is America’s Best Employer by State and ranked No.10 as the World’s Most Valuable Brands 2020.
Now, we will dive into the past to know how the company began its journey.
The formative years
Maurice and Richard McDonald, the brother duo, founded the McDonald’s restaurant in 1940 in San Bernardino, California, like a drive-in that offered a variety of food items. Thus began the scripting of McDonald’s company history. In 1948, the brothers decided to overhaul the business to refresh its identity. They aimed at effective branding by getting out from the mold of the stereo-typed drive-in restaurant and adopting a different business model. The target was to achieve economy of scale by producing vast quantities of food items at low cost and providing a superior customer experience, a concept unheard of in those times. To achieve the goal, the brothers opted for a limited menu comprising hamburgers, potato chips, pie, and drinks to achieve the goal. Later, French fries replaced potato chips.
Focus on customer experience helped to lower cost
Ongoing through the history of McDonald’s company, the essential aspect of marketing that catches the eye is the customer-centric approach of the company. Maurice and Richard realized that the restaurant systems should be highly efficient to minimize waiting times and delight customers. The happiness derived from smart and prompt service would act as a catalyst to attract more customers. They introduced the unique Speedee Service System that included a self-service system and eliminated the need for waiters and waitresses. Customers received their food quickly as the hamburgers were prepared early and served hot. The move helped to cut down overhead costs, and the company offered hamburgers at 15 cents, half of what others would charge at that time. The success inspired the brothers to launch the franchise program.
Change of guard
In April 1955, Ray Kroc, a salesman who supplied malt and shake mixtures, became the first franchise company and launched McDonald’s Systems Inc., later named McDonald’s Corporation, in Illinois and the first franchise to the east of the Mississippi River. After six years, Kroc bought out the founder brothers to become the owner of McDonald’s company.
No McDonald’s company overview can be complete without mentioning the company going public on April 21, 1965, within 10 years of opening the first franchise.
