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Mcdonalds
Success of mcdonalds franchise history
McDonalds and their impact on society now
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McDonald’s, a franchise known world-wide started out as a little burger stand in San Bernardino, California. It was started by brothers Mac and Dick McDonald, and Ray Kroc visited their restaurant in 1954. A year later he founded the McDonald’s Corporation, which was based on the successful burger stand run by the McDonald brothers. Three years after the McDonald’s franchise was founded, it had sold its 100 millionth hamburger. What factors led to McDonalds’ national and international success during the 1970s? McDonalds' national and international success in the 1970s was caused by its menu options, the cleanliness, and its spread around the world.
McDonalds’ success was achieved through its menu options due to the cheap prices, good taste, and its multiple choices. Ray Kroc, the founder of the McDonald’s franchise, employed teenagers to make the prices very low. These low prices allowed working class families to feed their children with restaurant food , which was not very typical at the time. Because most people could afford these meals, many went to McDonald’s for a meal. Even though these prices were not very high, McDonald’s still earned a lot of money because of the high concentration of people that dined there. An immigrant from Moscow, going to Boston, had his first encounter with McDonald’s in 1981. One day he went out for lunch during work. He passed many restaurants, but he stopped at a restaurant that “was all red and yellow, and very brightly lit. The prices were just right for [his] wallet.” As an immigrant he does not have a lot of money, so if even he has enough money, almost everyone has the amount of money needed to buy a burger from McDonald’s. Every person that came to McDonald’s since it was founded menti...
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... Grinding It Out: The Making of McDonalds. Contemperary Books, 1977.
Pace, Eric. "Ray A. Kroc Dies at 81; Built McDonald's Chain." New York Times, January 15, 1984.
Secondary Sources:
Boym, Constantin. "My McDonalds." JSTOR. 2001. Accessed March 22, 2014. http://www.jstor.org/stable/10.1525/gfc.2001.1.1.6.
"History of McDonald's Restaurants :: AboutMcDonalds.com." History of McDonald's Restaurants :: AboutMcDonalds.com. Accessed April 15, 2014. http://www.aboutmcdonalds.com/mcd/our_company/mcdonalds_history_timeline.html
McDonald's. "Our History." :: McDonalds.com. Accessed March 25, 2014. http://www.mcdonalds.com/us/en/our_story/our_history.html.
O’Brien, Keith. "How McDonald’s Came Back Bigger Than Ever." Edited by Dean Robinson. New York Times, May 4, 2012.
Schlosser, Eric. Fast Food Nation: The Dark Side of the All-American Meal. Boston: Houghton Mifflin, 2001.
Schlosser, Eric. Fast Food Nation: The Dark Side of the All-American Meal. New York: Perennial, 2002.
“Out of every $1.50 spent on a large order of fries at fast food restaurant, perhaps 2 cents goes to the farmer that grew the potatoes,” (Schlosser 117). Investigative journalist Eric Schlosser brings to light these realities in his bestselling book, Fast Food Nation: The Dark Side of the All-American Meal. Schlosser, a Princeton and Oxford graduate, is known for his inspective pieces for Atlantic Monthly. While working on article, for Rolling Stone Magazine, about immigrant workers in a strawberry field he acquired his inspiration for the aforementioned book, Fast Food Nation: The Dark Side of the All-American Meal, a work examining the country’s fast food industry (Gale).
Schlosser, E. (2004). Fast Food Nation: the Dark Side of the All-American Meal (first ed., Rev.). New York, NY: Harper Collins Publishers.
In the book Fast Food Nation: The Darks Side of the All-American Meal, Eric Schlosser claims that fast food impacts more than our eating habits, it impacts “…our economy, our culture, and our values”(3) . At the heart of Schlosser’s argument is that the entrepreneurial spirit —defined by hard work, innovation, and taking extraordinary risks— has nothing to do with the rise of the fast food empire and all its subsidiaries. In reality, the success of a fast food restaurant is contingent upon obtaining taxpayer money, avoiding government restraints, and indoctrinating its target audience from as young as possible. The resulting affordable, good-tasting, nostalgic, and addictive foods make it difficult to be reasonable about food choices, specifically in a fast food industry chiefly built by greedy executives.
Schlosser, Eric. Fast Food Nation: The Dark Side of the All-American Meal. Boston: Houghton Mifflin, 2001. Print.
The American life has been transformed by the fast food industry not just changing the American diet but also the culture, workplace, economy, and the landscape. “Today about half of the money used to buy food is spent at restaurants-mainly fast food restaurants.” (Schlosser) This could be due to the fact that about two-thirds of working women are mothers. The impact of fast food on the American culture is transparent when just looking at McDonald’s. McDonald’s has become the world’s most famous brand; the golden arches are more known than the Christian cross. “A survey of American schoolchildren found that 96 percent could identify Ronald McDonald.” (Schlosser) McDonald’s is responsible for 90 percent of new jobs in The United States. The landscape has changed due to the fast food ...
PR Newswire (n.d.). Press Articles - FASCINATING MCFACTS ABOUT MCDONALD'S INTERNATIONAL. Retrieved January 21, 2014, from http://www.mcspotlight.org/media/press/prnews_9dec96.html
sociologist George Ritzer argues that the relationship between McDonald’s and our society runs even deeper. Beyond its commercial propaganda and symbolism, Ritzer says, McDonald’s is a potent manifestation of the rational processes that define modern society.
In 1998, McDonald’s, in order to remain strong, tested the “McDonald’s Big Xtras” or “MBX” which was a potential hit. The “MBX” was a 4.5-ounce burger launched mainly to compete with Burger King’s “Whopper”. It was also reminiscent of the1980s “McDLT”, In ’98; they also brought back the “Filet-O-Fish” which in 1996 had been replaced by “Fish Filet Deluxe”. On a promotion basis, they offered novelty sandwiches, like “Cheddar Melt” and the “McRib”.
Everyone has heard of McDonald’s, but where did this familiar name come from? When people think of American food, it is not uncommon for two golden arches to appear in their minds. This story began with two brothers Dick and Mac McDonald who owned and ran a small restaurant in San Bernardino, California during the 1940s. In 1954 a man named Ray Kroc came across these two brothers while selling multi-mixers and was impressed with the business they were running. The menu was compact, listing options for only a few burgers, fries and beverages, but the restaurant was effective in its operation. Ray Kroc pitched the idea of spreading McDonald’s restaurants across the United States and in 1955 he founded the McDonald’s Corporation. By 1960 he bought the exclusive rights to the name. Kroc was able to expand substantially on this small business so that by 1958 McDonald’s sold its 100 millionth hamburger. (“McDonald’s.com”)
According to Royle (1999) McDonald’s is a very large multinational enterprise (MNE) and the largest food service operation in the world. Currently the company has 1.5 million workers with 23,500 stores in over 110 countries with the United Kingdom and Germany amongst the corporation’s six biggest markets, and over 12,000 restaurants in the United States. In 1974 the United Kingdom corporation was established and in 1971 the Germany corporation was established, currently the combined corporation has over 900 restaurants and close to 50,000 employees in each of these countries (Royle, 1999).
Have you ever wondered how the business empire of McDonalds was started? With over ninety nine billion served, it was started in 1940 in San Bernardino, California. It was started off as just a Bar-B-Q that served just twenty items. Its first mascot was named “Speedee” They eventually realized that by setting up their kitchen like an assembly line that they could be much more productive and get their food done faster, with every employee doing a specified job; the restaurants production rate became much higher. A milkshake machine vendor came into their small restaurant one day, his name was Ray Kroc. He saw how much potential the restaurant has, so he bought it out and opened one of the first franchises. Within the first year of Ray Kroc buying it, there were one hundred and two locations all around the world. McDonalds currently is one of the largest fast food restaurants in the world and currently has served over sixty four million customers through one of their thirty two thousand sites. It has almost become a way of life for America. Though, McDonalds started off as a small business between two brothers, it grew into one of the largest restaurant franchises in the world and greatly affects our society and how we eat our food.
McDonald’s has proven over time that the business practices they utilize work well and have led them to obtaining the title of the largest food retailer in the world. The founder of the company made a tactical decision in franchising the idea of providing fast food at a cheap price. Today, fast food has become a staple of not only American life but a viable food option all over the world. For McDonald’s a critical factor in them reaching the level of growth they currently experience has been franchising. It can be assured that McDonald’s will continue to grow through the usage of the franchising techniques as new food markets continue to develop all over the world.
In the conclusion I would like to say that Schlosser managed in the reportorial voice to tell the history, economic and day to day dealings, and negative implications of the fast food industry through delivery impressive examples of information. Fast food in United States seems to be truly American and considered to be as harmless as an apple pie. However, through his book Schlosser proved that the industry drive for consolidation and speed has radically changed the American diet, economy and workforce in the destructive way.
Overall, McDonalds are able to reach customers all around the globe and they market their products inexpensively. According to Naim (2001, p. 1) it is acknowledged that, “McDonald 's is a global brand, but we run our business in a fundamentally different way that ought to appeal to some critics of globalization. We are a decentralized entrepreneurial network of locally owned stores that is very flexible and adapts very well to local conditions. We offer an opportunity to entrepreneurs to run a local business with local people supplied by a local infrastructure. Each creates a lot of small businesses around