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Success of the McDonald's franchise
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McDonald's (USA) serves 27 million people every day, 1 million more every year since 2003. Since 2002 McDonald's (USA) have experienced 45 consecutive months of sales increases. In a recent Business Week column, McDonald's CEO James Skinner claims "We've learned. We've evolved. We believe we've cracked the code in the United States."What is the code? Americans like to eat all day long. Most outlets are open 18 hours a day. Others are 24/7. McDonald's essentially want you to stuff yourself from dawn 'till dusk. It seems that many customers are only too happy to oblige. After all, McDonald's have kids play areas, they have McCafe's, they have wide-screen TV's. So it is safe to say that this is a place that knows how to do business.
Taco Bell is also a very successful place of business that is a unit of Louisville, Kentucky-based Yum Brands Inc., made its name promoting its menu to Americans as something straight out of Mexico. But it's a very different dynamic south of the border. Here, the company is projecting a more "American" fast-food image by adding French fries — some topped with cheese, cream, ground meat and tomatoes — to the menu at its first store, which opened in late September in the northern city of Monterrey. Taco Bell has taken pains to say that it's not trying to masquerade as a Mexican tradition."One look alone is enough to tell that Taco Bell is not a 'taqueria'," the company said in a half-page newspaper ad. "It is a new fast-food alternative that does not pretend to be Mexican food."It's still a mixed message for Mexicans like Marco Fragoso, a 39-year-old office worker sitting down for lunch at a traditional taqueria in Mexico City, because the U.S. chain uses traditional Mexican names for its burritos, gorditas, and chalupas. I know it sounds good, thats because it is.
Subway is also a company that many love that has been very successful in this particular niche market. The owner and founder says that "They embraced the idea of educating the convenience-store environment on why branded fast food makes sense there—not Subway in particular, but fast food in general.
Lastly, the author informs readers that compared to Mexican food, Taco Bell’s food is cheaply made. Upon visiting a local Taco Bell restaurant, Burciaga orders a menu item and begins to consume the taco when he notices that the “meat was lukewarm and the cheese and shredded lettuce were cold.
With a unique appeal, a healthy and delicious product, and a powerful social message that made our target customers feel great about eating Chipotle over more traditional fast food, we have pioneered the fast-casual restaurant model our customers admire. Furthermore, our food sourcing is a rewardable effort and it is what we and our customers respect.
Subway, one of the present leaders in the fast food industry was set up in 1965 in Bridgeport, Connecticut by Fred DeLuca. A family friend of him suggested this idea to help him pay for his education to fulfill his dream of becoming a doctor. Dr. Peter Buck, one of Fred’s friends agreed to be his partner with a loan of $1,000. There was a huge growth in the business relationship that changed the landscape of the fast food industry.
Firstly, one aspect that is both Mexican and American is the cuisine. The original food for Mexico is very spicy and most of the time very colorful as well. Mexicans use spices, peppers, tomatoes, and cheese in many of the native dishes. They use an assortment of meat: pork, beef, lamb, and chicken. When Mexican restaurants spring up in the United States the food is toned down to appeal to Americans. The Mexican Americans use less spices to make the dishes milder rather than the hot, spicy native food. The food, still Mexican, takes on the likeness of American food. This is shown in the United States by all of the Mexican American restaurants such as Taco Bell. Therefore Mexicans have Americanized their food. “For Hispanics live on this side of the border, where Kraft manufactures Mexican-style Velveeta, and where Jack in the Box serves Fajita Pita.” (Rodriguez 131). Americans complement the Mexican style and the inverse.
From a study completed by Chicago-based Research International USA completed a study called “Fast Food Nation 2008. The panel consisted of 1,000 respondents of ages 16-65 who provided their inputs with an online survey which was conducted between March 13 through 2008. Which was based on results on fast food restaurants like McDonald’s, Burger King, and Wendy’s are gaining popularity even through the economic hardship and recession. Marketing strategy has become more of influence on kids and young American’s. As population grows and the demand increases of fast food restaurants are expanding their stores to capturing more consumers. Fast food chains are also willing to change their menus to continue to gain and retain repeating customers. With each generation that passes, brings fast food chains into more homes and continues impacting lives.
Fast food is widely considered a hallmark of American culture, but has spread worldwide. In a society where everyone is always on the go, the fast food industry has persuaded people to give up quality in favor of artificially-enhanced taste and drive thru convenience. Experts often blame fast food for obesity and related health problems. By using advancing kitchen technology to move towards efficient large-scale production rather than increased quality, the fast food industry has created lower quality food, forced lower standards of taste, and has caused adverse health effects in it’s consumers.
A world without the Big Mac, Happy Meals, Chicken McNuggets, and the phrase “I’m lovin’ it,” is almost inconceivable. People around the globe have become accustomed to the high gleaming golden arches that make up the famous emblem for McDonald’s. McDonald’s has grasped the concept that culture flows from power. In this case, the American culture flows through the veins of this fast-food giant and the more that is supplied, the greater the demand. It is no secret that McDonald’s has become one of the world’s largest fast-food retailers. It has become a well known icon that has played a huge part in globalization, with chains located in many different countries… transforming the meaning of fast-food all around the world.
With strength ultimately comes weakness and McDonald's has its fair share, especially in the last few years. Many weaknesses are due to the external environment which includes market saturation, increased price competition, and food and labor costs. These weaknesses affect many firms in the fast food industry so McDonald's is trying to effectively combat these forces using a differentiation strategy. Developing new products such
Within the book, the author outlines four major factors that can explain the success behind the concept of McDonaldization. These factors are mainly based on the premise of rationality, and the mentality of US society to always be mobile and fast paced to complete a seemingly endless number of daily tasks. The first factor Ritzer examines is efficiency, which refers to how quickly McDonalds can get a customer through their restaurant and satisfy their needs while using the least amount of effort and cost possible. This type of focus put forth on efficiency is translated into several other processes many of us a...
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.
Many customers will buy more package food in the future as it is cheaper and more convenience because customers can buy it in high volume and keep it for the long time.
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
Consumption habits are very important factors for international marketing strategy for fast food chains. Culture is also involved in here again, though these days’ customers are always looking forward to something new in the service and products. Then again, taste of customers is changing as they are transforming towards dining in if the image of fast food is not healthy. Health conscious customer are quick to abandon fast food, they find the fast food very harmful for lungs, heart and blood conditions.
The fast food industry in America has many drawbacks at the cost of supplying food to the American population. Since many people are ignorant of the process their food goes through in order to become the edible meal they consume, American companies easily take advantage of them. In class, we discussed a “Food Bill of Rights”. I believe that this is necessary in order to keep the food industry safe for the American public and environment. The main focus of my “Food Bill of Rights” is to ensure the fast food industry has the American population’s best interest in mind when producing their food.
Is Mcdonaldization Inevitable? George Ritzer’s, Mcdonaldization of Society, is a critical analysis of the impact on social structural change on human interaction and identity. According to Ritzer, Mcdonaldization “is the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as rest of the world” (Ritzer, 1). Ritzer focuses on four foundations of Mcdonaldization: efficiency, calculability, predictability, and control. These are the commandments of any rationalized corporation. However, they are not carried out from the point of view of the consumer. Efficiency, for example, may entail the placing of great inconveniences upon a consumer for the sake of efficient management. Calculability may involve hiding certain information from the consumer. Predictability and control may involve a company's ability to predict and control consumer behavior, not the consumer's ability to predict what kind of product or control what kind of service he gets. Ritzer calls such breakdowns "the irrationality of rationalization." Ritzer points out the irrationality of rationality, as all of the supposed benefits of Mcdonaldized systems backfire: waiting in long lines, suspect quality, little or no customer service, little or no customer service, the illusion of large quantities for low prices, and severely limited selection of choice. Throughout Mcdonaldization of Society, Ritzer describes Mcdonaldization as largely negative and often destructive. While Mcdonaldization is rapidly taking over American society and spreading to the rest of the globe, it is not something unjustly imposed on the American people. The consumerist culture of America has groomed the public to seek efficiency, calculability, predictability, and control. These principles grow in importance and value in contemporary America. Even when given the choice to avoid a Mcdonaldized establishment or product, people will flock to it. I agree with Ritzer’s analysis of a Mcdonaldized society, but I feel that Ritzer has failed to provide any real solutions to the Mcdonaldization process. I will support Ritzer’s analysis of the Mcdonaldization process, but also show that it is inevitable and essential in the American society to have a rationalized system. Ritzer stresses that “Mcdonaldization” does not just refer to robotlike assemb...