Description
A fast food restaurant, also known as a quick service restaurant (QSR) within the industry, is a specific type of restaurant characterized both by its fast food cuisine and by minimal table service.
McDonald’s
Anonymous Author
Overview
• • • • • • • History Franchising Operations Real Estate Size Growth & Reach Corporate Vision & Strategies
History
• • • • • • 1948 McDonald’s Brothers 1955 Ray Kroc 1956 14 Restaurants; $1.2M sales 1960 228 Restaurants; 400M burgers 1967 1st International Store in Canada 1967-Today Lots of Growth
Franchising
• • • • Long-term success v. short-term gain Exclusive to owner operators; easy entry Sales are King Success of franchisee drives success for all
– Supplies-all direct, quality at low price – Marketing-over $600M since 1999 – Operations...
Operations
• Quality, Service, Cleanliness, Value • Strict Compliance • Magic of the system
– better consistency, lower costs
• Refine-don’t alter
– Product Development – System Development
Real Estate
• World’s largest owner of retail real estate • Lease Income • Key to owner/operator strategy
– Allows under-capitalized independents in
• Key to financial strategy
– Food Sales generate 3/4 of Corp Revenue – Leasing generates 2/3 of Corp Income
Size
• 20% share of $100B US Fast Food Industry • 28,707 Restaurants in 121 countries • 2000 Sales $19.5B
– More than BK, Wendy’s, Taco Bell Combined
• 2000 Net Income $1.9B
– 5x all of Tricon, 8x BK, 12x Wendy’s
• Largest US beef purchaser; over 600M lbs • Purchases 7.5% of US potato crop
Growth
• Franchising • Saturation Issues in US • Diversification
– – – – Aroma Café (UK) Boston Market Chipotle Mexican Grill Donato’s Pizza
Reach
• Restaurants:
– – – – – – – USA Europe Asia/Pacific Latin Am Can, MidE, Afr Other Brands TOTAL
2000
12,804 5,460 6,260 1,510 1,665 1,008 28,707
1995
11,368 2,597 2,735 584 1,015 0 18,299
Vision
• Be the world’s best quick-service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile
Strategies
• Be the best employer for our people in each country around the world • Deliver operational excellence to our customers in each of our restaurants • Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald’s system through innovation and technology
McQuestions?
doc_331613292.ppt
A fast food restaurant, also known as a quick service restaurant (QSR) within the industry, is a specific type of restaurant characterized both by its fast food cuisine and by minimal table service.
McDonald’s
Anonymous Author
Overview
• • • • • • • History Franchising Operations Real Estate Size Growth & Reach Corporate Vision & Strategies
History
• • • • • • 1948 McDonald’s Brothers 1955 Ray Kroc 1956 14 Restaurants; $1.2M sales 1960 228 Restaurants; 400M burgers 1967 1st International Store in Canada 1967-Today Lots of Growth
Franchising
• • • • Long-term success v. short-term gain Exclusive to owner operators; easy entry Sales are King Success of franchisee drives success for all
– Supplies-all direct, quality at low price – Marketing-over $600M since 1999 – Operations...
Operations
• Quality, Service, Cleanliness, Value • Strict Compliance • Magic of the system
– better consistency, lower costs
• Refine-don’t alter
– Product Development – System Development
Real Estate
• World’s largest owner of retail real estate • Lease Income • Key to owner/operator strategy
– Allows under-capitalized independents in
• Key to financial strategy
– Food Sales generate 3/4 of Corp Revenue – Leasing generates 2/3 of Corp Income
Size
• 20% share of $100B US Fast Food Industry • 28,707 Restaurants in 121 countries • 2000 Sales $19.5B
– More than BK, Wendy’s, Taco Bell Combined
• 2000 Net Income $1.9B
– 5x all of Tricon, 8x BK, 12x Wendy’s
• Largest US beef purchaser; over 600M lbs • Purchases 7.5% of US potato crop
Growth
• Franchising • Saturation Issues in US • Diversification
– – – – Aroma Café (UK) Boston Market Chipotle Mexican Grill Donato’s Pizza
Reach
• Restaurants:
– – – – – – – USA Europe Asia/Pacific Latin Am Can, MidE, Afr Other Brands TOTAL
2000
12,804 5,460 6,260 1,510 1,665 1,008 28,707
1995
11,368 2,597 2,735 584 1,015 0 18,299
Vision
• Be the world’s best quick-service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile
Strategies
• Be the best employer for our people in each country around the world • Deliver operational excellence to our customers in each of our restaurants • Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald’s system through innovation and technology
McQuestions?
doc_331613292.ppt