INTRODUCTION

 McDonald's Corporation (NYSE: MCD) is

the world's largest chain of hamburger fast
food restaurants, serving nearly 47 million
customers daily. At one time it was the
largest global restaurant chain, but it has
since been surpassed by multi-brand operator
Yum! (KFC, Taco Bell and others) and
sandwich chain Subway.
 It’s operating more than 30.000 outlets in
more than 120 countries. In the UK
McDonald’s Restaurants Ltd operates 1200
stores, of which 70% are company owned.
 McDonald’s generally sets the highest
standard for itself, yet most are not achieved
or public perception differs from that of the
company’s.
HISTORY
 The business began in 1940, with a restaurant opened by
brothers Dick and Mac McDonald in San Bernardino,
California.
 Their introduction of the "Speedee Service System" in 1948
established the principles of the modern fast-food restaurant.
 The original mascot of McDonald's was a man with a chef's
hat on top of a hamburger shaped head whose name was
"Speedee." Speedee was eventually replaced with Ronald
McDonald in 1963.
 The first McDonald's restaurants opened in the United States,
Canada, Costa Rica, Japan, the Netherlands, Germany,
Australia, France, El Salvador and Sweden in order of
openings.
AIMS AND OBJECTIVES
 McDonalds’ aim (‘vision’) is to be the ‘world’s best quick service restaurant
experience. Usually, local management teams who know its market firsthand
run product and market strategies.
 Generally McDonalds pursues a value strategy offering its products at relatively
low prices. McDonalds targets primarily children (Happy Meal, toys, and
adverts) in the hope to build a life long customer relationship and future brand
loyalty.
 McDonalds focuses on maintaining a powerful brand to differentiate its core
products (Big Mac, French Fries) and create barriers to enter the market.
 McDonalds have four major aims and objectives as far as the environment is
concerned:
 Conserving and protecting natural resources
 Encouraging environmental values and practices
 Effectively managing solid waste
 Ensuring accountability procedures
TYPES
 Most standalone McDonald's restaurants offer both counter
service and drive-through service, with indoor and sometimes
outdoor seating.
 To accommodate the current trend for high quality coffee and
the popularity of coffee shops in general, McDonald's
introduced McCafé.
 Some locations are connected to gas stations/convenience
stores, while others called McExpress have limited seating
and/or menu or may be located in a shopping mall.
 Other McDonald's are located in Wal-Mart stores.
 McStop is a location targeted at truckers and travelers which
may have services found at truck stops.
MCDONALD’S OWNER / OPERATOR
PERSPECTIVE
 McDonald’s remains committed to franchising as a
predominant way of doing business. Listen as six McDonald’s
Owner / Operators share their perspective in these areas:
Training, Mc family, Customer satisfaction, Social
Responsibility and Support. Our Owner/Operators devote full
time and best efforts to their restaurant business.

 World Class Training

 Our franchising system is built on the premise that
McDonald’s can be successful only if our Owner/Operators
are successful. We believe in a partnering relationship with
our Owner/Operators, Suppliers and Employees. This
relationship begins with world class training.
 World Class Service
 McDonald's Field
Operations and Franchising
staff work directly with you
from the moment you enter
our training program. The
primary job of the Field
Operations staff is to assist
our Owner/Operators
maximizing Quality,
Service and Cleanliness
which help you optimize
sales and profits.
PURCHASING ITS FRANCHISE
 Most Owner/Operators enter the System by purchasing an existing
restaurant, either from McDonald’s or from a McDonald's
Owner/Operator. A small number of new operators enter the System by
purchasing a new restaurant.

 Equipment and Pre-Opening Costs

 Typically these costs range from $950,900 to $1,797,700.
 The size of the restaurant facility, area of the country, pre-opening
expenses, inventory, selection of kitchen equipment, signage, and style of
decor and landscaping will affect new restaurant costs. These costs are paid
to suppliers.
 While McDonald's does not offer financing, McDonald's Owner/Operators
enjoy the benefits of our established relationships with many national
lending institutions. We believe our Owner/Operators enjoy the lowest
lending rates in the industry.
CONCLUSION
 Each McDonald's restaurant is operated by a franchisee, an affiliate, or
the corporation itself. The corporations' revenues come from the rent,
royalties and fees paid by the franchisees, as well as sales in company-
operated restaurants.
 McDonald's primarily sells hamburgers, cheeseburgers, chicken
products, french fries, breakfast items, soft drinks, milkshakes, and
desserts. In response to obesity trends in western nations and in the
face of criticism over the healthiness of its products, the company has
modified its menu to include such healthier alternatives as salads,
wraps and fruit.
 McDonalds is constantly introducing new products, usually for a
limited period of time.
 Recently McDonalds acquired Boston Market Chicken restaurants, the
Donatos pizza chain and Chipotle Mexican Grill. In the UK, it
purchased the Aroma coffee chain and 33% of Pret A Manger.