McDonald’s is the one of the world’s most successful franchise organization, at present there are more than 32000 franchises all around the world, and it is still keeping an annual growth rate of about 2000 stores.
McDonald’s created a unique franchise model: McDonald’s company bought or rented real estate, then sublet it to the franchisee. The real estate has become an important property of McDonald’s, the rent income also accounted for a large proportion at McDonald’s revenue.
On location problem, McDonald’s has a guide with couple thousands pages, everything is programmed. McDonald’s has an extensive and detailed decision system for how to located the store which including demographic databases and population statistics-based marketing research to decision support. With this system, McDonald’s is able to target consumers and analysis competition within a radius of five to seven miles and finally to make a thorough analysis of the scope. That make sure McDonald’s can fully guarantee there is infallible to locate the shop.
Most McDonald’s restaurant are available with counter order and drive-thru, and also offers both indoor dining and outdoor seating. Except that, more and more McDonald’s over the world are successfully carried out a 24-hour, drive-thru restaurant, McCafe dessert station and many other innovative services in order to continue to maintain the leading position in the industry.
With the popularity of advanced communications and networks, McDonald’s has provided the online order, mobile order and home delivery services. That makes customer can enjoy the McDonald’s product but do not need to go to the store.
McDonald’s golden rule is the customer is always first. The highest standards of Quality, Service, Cleanliness and Value that is QSC & V principle is the most important principle can best embody the characteristics of the McDonald’s.
McDonald’s franchising advantages include several points
1) McDonald’s is not only the industry leader, but also a world-class brand franchise leader in the world with an unparalleled influence.
2) “Quality, service, cleanliness and value” is the soul of McDonald’s, it is the core competitiveness.
3) McDonald’s provide broad support that include daily operations, training, marketing, advertising, human resources, procurement and store location and others in order to protection to the franchisee not only in the initial start, more in the future development, and also aim to maintain all of the McDonald’s store in a high level quality.
All McDonald around the world used exactly same condiment, the quality of meat and vegetables must achieve the unified required standards, the production process is completely same, and also has a set of rules of introduced a new variety.
Moreover, McDonald’s is not to provide tableware, food, raw materials directly to the franchise stores, but contracts with professional providers, and then delivered directly by their respective branches. In order to avoid and resolve the conflict, McDonald’s has built a friendship with many distribution companies. Nowadays, McDonald’s has the world’s most comprehensive supply chain by working closely with suppliers. With the approach of global sourcing, to ensure every single store is able to get the best quality raw materials with the most competitive prices.
Joann and Julie, 2015, “McDonald’s Nears Decision on Real Estate”. Retrieved 14 May 2016
“McDonald’s Momentum Delivers Another Year of Strong Results for 2011”. Yahoo Finance. 2012. Retrieved 13 May 2016