The challenges of McDonald’s Zero Hour Contracts
Introduction
McDonald's is an American hamburger and fast food restaurant chain. It is one of the largest restaurant chains in the world serving about 69 million customers in over 100 countries. As of close of 2016, McDonald’s had 36700 outlets employing 420,000 employees working full time and further 1.9 Million total workers around the world. The company primarily sells, cheeseburgers, hamburgers, French fries, chicken products, soft drinks, breakfast items, milkshakes, wraps, and desserts. The company has improved its menu to also include salads, fish, smoothies, and fruits. McDonalds is operated by either the corporation itself, an affiliate or a franchisee. McDonald’s corporation revenues come from sales in company-operated restaurants, rents, royalties and fees paid by the franchisees. The
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McDonald’s corporation started in 1944 as a drive-in restaurant in California. This single location was started by Dick and Mac McDonald. That location was altered in 1948, when the start of the 19 cent cheeseburger became popular. They had continued growth over the years and by 1965 there were over 700 restaurants in service. Since that time they have grown dramatically. As of 2011, they are operating in 119 different countries. They have more than 35,000 restaurants and over 1,8 million employees. McDonald’s direct competitors are Burger King and Yum brands (Taco Bell, KFC, Pizza Hut). Forbes profile describes McDonald’s as “As of December 31, 2011, of the 33,510 restaurants in 119 countries 27,075 were franchised or licensed (including 19,527 franchised to conventional franchisees, 3,929 licensed to developmental licensees and 3,619 licensed to foreign affiliates (affiliates)-primarily Japan) and 6,435 were operated by the Company. McDonald's menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Snack Wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages.” They are considered #6 by Forbes on the World’s Most Valuable Brands. Their dollar menu and attention given to children’s products in their much marketed Happy Meal’s have brought them much attention and wealth.
The middle of the chapter talks about popular culture, and the spreading of fast food corporations across the world. Fast Food Nation tells us that McDonald’s opens at least four new restaurants in other countries besides America everyday. With so many Mcdonald’s
Bass, B. M. (1990, Winter). From transactional to transformational leadership: Learning to share the vision. Organizational Dynamics, pp. 19-31.
McDonald's is the world’s leading food service retailer with more than 30,000 local restaurants in 121 countries serving 45 million customers each day.
McDonald’s Corporation are the most successful and popular fast food brand in the world, holding the largest fast food market share and being the leading fast food restaurant chain in terms of world sales (8%). They are the second greatest outlet operator with more than 34,000 outlets, serving worldwide to 69 million customers daily, across 119 countries. Their brand is the seventh most valuable and
Over the past twenty years, an abundant body of researches have been done to review transformational leadership and transactional leadership. Burn (1978) was the first person to introduce and conceptualize the concept of transformational leadership and transactional leadership. Bass (1985) based on Burn’s concept and deepened his notion with modifications, which stated that one of the best frameworks of leadership is transformational or transactional. Following Bass and Avolio (1994, p. 4) provided the idea of these two leaderships and generalized them into the development of global economic world. Bass and Avolio (1997) also suggested that there was no need to view transformational and transactional leadership as
However, through McDonaldization, the distinction between the customer and employee is disappearing. In fact, the customers are the laborers, disposing of their own trash in fast-food restaurants and pumping their own gas at the gas station. The exploitation of customers exceeds that of employees in that customers are not simply paid less for the value they produce; they are paid nothing at
Mc Donald Corporation is one of the largest retail chain in fast food restaurants and serves more than 60 million customers in more than 100 countries. It is headquartered in the United States. McDonalds, which belong to restaurant industry, is one of the leading global food service retailers that deal with fast foods. McDonald’s number 1 Store Museum was the first McDonald’s restaurant opened in Des Plaines, Illinois in April 15, 1955 by McDonald’s Corporation founder, Ray Kroc. Affiliate, a franchisee or the actual corporation itself operates the restaurant today (Baines, Brown, Benedettini & Ball, 2012). In addition, the restaurant has more than 36,000 local restaurants that serve more than 68 million people. The restaurant serves more than 100 countries with 80% of the restaurant been franchised. The restaurant and its franchisees employ approximately 1.9 million (its website). The restaurant’s current president and Chief Executive Officer is Steve Easterbrook who took over after Don Thompson. The restaurant reflected a net income of $1.07 in last year, which was a decline of 30% from the previous year. According to Collett Miles (2017), Mc Donalds revenues have grown by close to 28 per cent over the last 5 years to $ 34billion, and 10 per cent growth in the operating income to $ $3.5billion. McDonalds deals with the selling of chicken, French fries, soft drinks and desserts
(1987), Thriving on Chaos: Handbook for a Management Revolution. Vermont, p50). Thus, there seems a need for organisations to be, or become, more and more dynamic, and ever evolving in their customer focus, relationships, and consumer products and services.
In this paper I will be analysing the effects McDonaldization has on society and the employees of the twentifirst century. I will be discussing whether McDonaldization is to be expected, accepted, rejected or is inevitable. I will also be arguing that McDonaldization does effect employee motivation, and how it fits in the numerous theories on motivation. McDonaldization as defined by George Ritzer is "the process by which
McDonald’s Corporation is the world’s largest chain of hamburger fast food restaurants. There are over 31,000 McDonald’s locations worldwide primarily selling hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, and desserts.
McDonald’s Corporation operates in the food service industry. The company has its restaurants in more than 100 countries of the world. McDonald’s, the world’s largest food chain is headquartered in U.S. having an employee population of 390000 (About McDonald's..., 2008).
Employees and Customers: In India, McDonald’s employs 5,000 people and serves half a million customers a day via its 169 family restaurants. McDonald’s has 85,000 employees and serves 2.5 million customers a day in the UK.
McDonald’s is a multinational fast-food hamburger chain. The company was founded in 1940 by two brothers named Maurice and Richard McDonald (“McDonald’s”). McDonald’s currently has over 35,000 restaurants and serve over 68 million customers a day on average (“History of”). The fast-food giant makes 28 billion dollars annually, and are the largest fast-food chain in the world (“McDonald’s”). That calculates to 75 million dollars a day, which is unreal. This paper will examine the working conditions of the employees.
In addition to this, Royle mainly focuses on how the employees at McDonalds have been treated in terms of low-wage, employees’ rights and misconduct. The employees are shown to be consistently mistreated and Royle uses the words ‘harassment’ and ‘intimidation’ to further support his claim. Royle gave statistics on how McDonalds wanted to ‘reduce costs’ and in ‘1994 a typical US worker would start work on around $4.00 (£2.50)’. This supports Royle’s claim that McDonalds did not treat their employees correctly considering the amount of work they have to do. Royle’s claim can be further strengthened by 100 demonstrators who protest and demanded for better pay from McDonalds .