McDonald’s Corporation

McDonald’s humble beginnings began as a small hamburger joint in San Bernardino, California, run by two brothers Dick and Mac McDonald, and ends up being one of the world’s leading foodservice retailers. McDonald’s Corporation has more than 32,000 restaurants serving more than 60 million people in 118 countries every day, in large part due to the McDonald brothers’ vision to start a franchise program from their small restaurant. It all started in 1954 when the brothers met 52-year-old multi-mixer salesman Roy Kroc, who later became their first franchise agent. When Ray Kroc received a large order for eight multi-mixers to be delivered to brother McDonald’s restaurant, he was amazed at the effectiveness of his operation. The McDonald brothers put together a small menu that focused on a few items – burgers, fries, and drinks – allowing them to focus on quality at every step. In 1955, Roy Kroc told the brothers of his vision of creating McDonald’s restaurants across the country and founded the McDonald’s Corporation. By 1958, McDonald’s had sold its 100 millionth hamburger, and in 1960 Kroc bought the exclusive rights to the McDonald’s name from the brothers. Kroc’s distinctive philosophy to build a restaurant system that would be renowned for consistently high-quality food and uniform preparation method. I wanted them to serve hamburgers, buns, fries and drinks of the same flavor from Seattle, Washington to Miami, Florida. Kroc’s vision and drive is one reason McDonald’s is the world’s leading fast food retailer today.

The relationship with McDonald’s suppliers has been very successful and strong for many years due to the mutual trust they have in each other. Some of McDonald’s long-term suppliers are Gavina Gourmet Coffee, who has been with McDonald’s for 25 years: Lopez Foods, 30-year beef supplier, Keystone Foods, Chicken McNuggets, 40-year-old and 100 Circle Farms, potatoes, 35 years. The reason these suppliers have been with McDonald’s for so long is because they maintain strict food safety and quality requirements. McDonald’s suppliers meet or exceed USDA standards and are committed to being environmentally friendly businesses. Because Ray Croc (founder) succeeded in creating the most integrated, efficient and innovative supply system in the foodservice industry, that is why McDonald’s is so successful today.

In the downfall of America and other global economies, McDonald’s has proven to be recession-proof year after year. These are some of the reasons McDonald’s continues to grow while other companies continue to tighten their belts. One of the reasons is that McDonald listens to the wants and needs of its customers. The way McDonald’s listens is providing its customers with an alternative to high-end restaurants by offering dollar value meals. Even though the cost of food and utilities is higher, McDonald’s keeps its menu prices low and has more night hours for the benefit of its customers. For health-conscious customers, McDonald’s offers a great selection of healthy options including: 11 types of salads, 11 types of wraps, and 4 real fruit smoothies. For die-hard coffee consumers, McDonald’s offers 19 types of hot and cold coffee beverages in the McCafe section of its menu. McDonald’s McCafe outperforms its Starbucks competitors on price and convenience. The main reasons why McDonald’s is succession over its competitors; McDonald’s has more restaurants around the world, with more variety of menu items to suit whatever country or culture they are in.