Essay about McDonalds Evolution of the Food Industry

McDonalds: Evolution of the Food Industry History McDonalds has had a global impact on the food industry. McDonalds developed a revolutionary idea known today as fast-food. This impact began in 1930 when Maurice and Richard McDonald left New Hampshire seeking to make a fortune in Hollywood, started up a drive-in restaurant in San Bernardino. Unlike so many other food-service operations at the time, McDonalds came up with new ideas that turned the usual slow paced dinner into a finely tuned engine. McDonalds offered only a nine-item menu with burgers, French fries, shakes, and pies. They also eliminated seating, and used paper and plastic utensils instead of glass and porcelain. Like Henry Fords assembly line, McDonalds†¦show more content†¦So the next day after seeing the operation, he offered them a proposition. He asked them why they dont open a series of units like this one. The brothers were not overly enthused about the idea, and were satisfied with the $100,000 they earned annually. But Kroc, being the veteran salesman that he was, use every ounce of persuasion that he could come up with and finally convinced the brothers to have a deal. The deal was that McDonalds would sell franchises for the low price of $950. In exchange, Kroc would keep 1.4 percent of all sales and give .5 percent back to the brothers. This arrangement was far more favorable to the McDonalds brothers then to Kroc, but it was the act of a desperate man since his milkshake company was ready to go belly up. Six years after the McDonalds brothers met Ray Kroc, a turning point in the future of the business happened. The relationship between the parties had become a continuing source of irritation. In 1960 Ray Kroc decided to raise enough capital to try and buy out the brothers. He toke out a $2.7 million loan and paid off the McDonald brothers for their name alone. At the time of Ray Krocs death he was reported as being worth an estimated $340 million! Krocs idea of the way to develop McDonalds into a profit was to sell an operating service to partners. This revolutionary way of doing things, instead of just supplying franchisees with milk-shake formula and ice cream, is what led toShow MoreRelatedMcdonald s The World s Leading Fast Food Service Retailer Essay938 Words   |  4 Pages The McDonald’s Corporation is the world s leading fast food service retailer. In 1948, This infamous fast food company initially began as a small hamburger stand in Des Plaines, Illinois. This restaurant which would soon become a market leading force. It was founded by two brothers, Dick and Mac Donald. McDonald’s currently has over 30,000 restaurants in over 100 countries. McDonalds serves nearly 47 million customers daily. It is one of the worlds most well-known brands and is a significantRead MoreIn Technical Terms, Strategic Management Is Defined In1573 Words   |  7 Pagesdetermine the long-run performance of a corporation. Strategic management is considered an evolution primarily because during a company s run they are constantly changing to keep up with new customer demands and its competitors. In a company s evolution phase, they must focus on growth and what it takes to get achieve success. This may include focusing on the reassessment of a company’s outlook on innovation. Evolution is a strategy used to stay relevant in a competitive market. Under this phase, a companyRead MoreAll That and a Bag of Chips719 Words   |  3 Pagesknow that fast food would alter the way I looked? But then again, I was just only a child; I had no control over what I ate. I’m guessing my parents were supposed to take care of my diet though? That is the idea that Spurlock, Popkin, and Schlosser try to reveal; Americans have no idea what they stuff in their mouths and don’t know how to control their binge for fast food. These three artists take different approaches in informing us the cause and effects of the fast food industry. Spurlock perfectlyRead MoreMcdonalds Case Study1580 Words   |  7 PagesMcDonald’s is a well-known staple and contender within the fast food industry. It is one of the largest fast food chains throughout the world today. After Mac and Dick McDonald opened their first restaurant in 1954, caught the attention of Ray Kroc, which started the evolution of McDonald’s restaurants today. At the time, Kroc was selling multi-mixers used for mixing multiple shakes at once. After seeing the business that Mac and Dick McDonald had built, he immediately saw the potential for expansionRead MoreMc Donalds Maketing Strategies Essay1527 Words   |  7 Pages‘McDonalds is the worlds leadi ng foodservice retailer with more than 30,000 restaurants serving nearly 46 million people in more than 110 countries each day. In the UK, McDonalds and its franchisees employ 70,000 staff in 1235 restaurants. This is McDonalds 30th year of operating in the UK. http://www.mcdonalds.co.uk/?f=y [accessed 16th November] Those infamous golden arches have come a long way since being established in 1940 by Dick and Mac McDonald. Ray Kroc, credited with the chainsRead MoreProduct Design Development and Product Lifecycle Analysis of McDonalds Corporation811 Words   |  3 PagesProduct Design, Development and Product Lifecycle Analysis of McDonalds Corporation McDonalds competes in one of the most mercurial and fast-changing industries there are, where product lifecycles must be aligned both to rapidly changing customers preferences and tastes. The inherent need for the McDonalds product strategy to stay relevant, topical and in demand for consumers also requires a highly integrated, real-time supply chain that can react quickly to changes in product strategy andRead MoreMcdonald’s Expands Globally While Adjusting Its Local Recipe Essays637 Words   |  3 PagesEnvironment ------------------------------------------------- Case 1-2: McDonald’s Expands Globally While Adjusting Its Local Recipe Identify the key elements in McDonald’s global marketing strategy. In particular, how does McDonald’s approach the issue of standardization? Does McDonald’s think global and act local? Does it also think local and act global? The plan to Win initiative is built around five factors that drive McDonald’s business: people, products, place, price, and promotion. As a studentRead MoreFast Food Nation1487 Words   |  6 PagesChanging of the Food Industry â€Å"In many respects, the fast food industry embodies the best and worst of American capitalism at the start of the twenty-first century – its constant stream of new products and innovations, its widening gulf between gulf between rich and poor† (Schlosser 6). In 2001 Eric Schlosser published â€Å"Fast Food Nation.† Eric Schlosser’s early 21st century muckraking text, â€Å"Fast Food Nation,† attempts to shed light on the consequences of the fast food industry on American societyRead MoreThe Importance Of Fast Food1157 Words   |  5 PagesFast food has been increasingly popular throughout the twenty-first century because of its sacrifice of health for speed, but that has recently started to change. â€Å"Fast casual† is the idea of a more casual restaurant atmosphere with healthier food, slightly higher prices, and a better overall experience. The transition to a more innovative fast casual mind set has spurred an increasing popularity across the country. Rising awareness in society has helped dawn the rise of the fast casual industry asRead MoreSWOT Analysis: Mc Donald’s India Essay1322 Words   |  6 Pagesproposed venture’s SWOT analysis report. STRENGTHS: †¢ Good Taste: The fast food chain is operating in many diverse cultures where tastes in food are extremely different than those of US or Indian consumers. Thus ability to adapt to local taste is one of McDonald’s strengths. †¢ Brand Equity: McDonalds has built up huge brand equity. It is the no 1 fast food company in India these days by sales McDonalds India is a leader in the food retail space, with a presence of more than 310 restaurants serving more