Essay on The Success of the McDonald’s Franchise

Since its conception over seventy years ago, the McDonald’s Company has since become synonymous with the idea of greasy, iconic fast food complete with a meal of a Big Mac, French

As a child I grew up all around food, my family always had problems with eating healthy. My diet would mainly consist of fast food, twice a week we would eat Mcdonalds and growing up this was my favorite place to eat. They have everything a little kid wants; from the Ronald Mcdonald clown, to the Big ball pit outside, it was a child’s heaven. As I began to eat more and more i began to gain weight extremely fast, so much that my parents had to stop eating fast food and start cooking healthy. This was happening all around the United States more and more people are eating fast food, and thus obesity is on an uprise. Mcdonald’s has become famous off of it’s slogan ‘“I'm lovin it” but people actually aren’t “lovin it”, Mcdonald's is constantly being

George Ritzer describes McDonaldization as “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 the rest of the world”. McDonaldization is the idea that our society is becoming more efficient and more fast paced. Rational systems can be defined as “unreasonable, dehumanizing systems that deny the humanity, the human reason, of the people who work within them or are served by them”.1 Today there are many types of businesses that are increasingly adapting the same values and principles of the fast-food industry to their needs. Rational systems are dehumanizing our society and seem to be even more irrational than convenient. “Almost every aspect of

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.

Also, these large corporations contain uniformity of products and continue to have a brand recognition built in upon opening a new location of a franchise. An already established customer base will already have a need for the product and flock to a new location because they know exactly what they will be getting each time they visit. Customers know that when they visit McDonald’s for instance, the hamburgers will always taste the same, just how they remembered it. These franchises have a proven format to bring in capital and keep the business successful as well as corporate quality control standards to ensure continued business.

Unlike starting a new business from scratch, many new business owners decide to buy a franchise. They get a proven business model, the buying power of a large chain and consumer awareness of a large brand.

McDonald's has a goal of 100% total customer satisfaction£¬ this goal is not always attainable. McDonald's has a second company goal that sets them apart from most of their competitors.

A good brand name: McDonald’s is a very well developed brand name through efficient management and marketing policies. Similarly, McDonald’s is operating in the market for more than 50 years now, this long presence of McDonald’s in the market has made it a very trusted and successful and trusted brand.

We will do so by reviewing the relevant literature on the subject and by comparing what the theory says with the opinions of our panel of experts, as well as with the empirical information collected from public sources of information regarding the hotel industry. THE DECISION TO BE A FRANCHISEE: A THEORY OF FRANCHISE DEMAND AND ITS APPLICATION IN THE HOTEL INDUSTRY As described by Fulop and Forward (1997), a lot of theoretical and empirical research has been devoted to explain why firms franchise. However, few studies have aimed to explore the importance and the advantages of the franchise system from the perspective of the franchisee; that is, the entrepreneur choice of franchise vs. independent ownership – a theory of franchise demand. Given the relevance of franchising to the development of businesses, it is interesting to learn why so little attention has been paid to the decision of would-be entrepreneurs to eschew the independent operation and become franchisees. The issue of franchisee motives, though widely recognized and frequently discussed by franchisors, still remains largely unexplored in empirical research terms. From a managerial point of view, a better understanding of the franchisee‟s motivation will provide some interesting insights to franchisors as to how to position their offer in the franchise market. Franchising is not only an organizational system, it is also a market

McDonald’s, one of the largest and most successful fast food eateries in the world, has been victimised in preparing and selling high calorie foods and beverages. These openly shared opinions have led to McDonald’s upgrading its menu to include healthier alternatives.

Perseverance, inspiration and motivation have always played a key role in the success of any venture.

Opening a franchise brings a brand name and materials to a business to produce instant recognition and bring in brand loyal consumers. A franchise creates a business relationship with a franchisor to bring a brand name, trade dress, and trademark to a franchisee (Kubasek et al., 2015, p. 431). In turn for the franchise material and name, the franchisee pays a percentage of sales to the franchisor (Kubasek et al., 2015, p. 431). As reported in 2011, franchising was so popular that it was the genesis of one of every 12 retail businesses in the United States (Welsh, Desplaces, & Davis, 2011, p. 4). A weakness of owning a franchise was reported by Perrigot, Hussain, and Windsperger (2015) where “franchisees have to strictly follow operating manuals and almost all of the strategic decisions are made at the franchisor level” (p. 696). Although it does have a curtailed degree of freedom, a franchise brings greater stability with a proven business style and support system.

For businesses that experience finance, human resource and property restraints to achieving expansion, franchising is a way to expand businesses with relatively cheap and risk-free as franchisee finance the majority of the cost such as the premises, vehicles or whatever necessary to grow the business. In other words franchising is a way to secure capital for franchisor. By allowing other ambitious business people to create another branch to a small business, its enable the owner to keep tight hold on overhead, marketing costs and salary, as Harvard Business School assistant professor Dennis Campbell notes, companies which use franchising do not need to invest time and energy in investing highly-skilled managers, allowing significant cost savings not least in terms of wages. This means the franchisor can use its time and capital for other purposes. Robert E. Bennet indicated that economies of scale in purchasing could be achieved much faster by a small company expanding through the franchise route.

The franchisor has the power to reject or accept anyone who wants to franchise his or her business. Franchisors only accept a franchisee after the candidate passes certain company requirements that show the franchisor that the candidate is serious about upholding the expectations for the franchise that the franchisor has set in place. A consulting company (Reliable Background Screening) towards franchisors, gives advice to franchisors and say, “By thoughtful and careful analysis, you improve your odds of choosing the best franchisee owners to represent and promote your franchise company 's image and values. (“Background Checks to Protect Your Franchise Brand,”n.d.). Franchisors have to make the right choice when it comes to picking their franchisee because in the future they will be the one representing their company. If in the future the franchisee and franchisor are not seeing eye to eye it can open up conflicts which can ultimately hurt their brand.

Healthy food i.e. low calorie and high fiber. Competition from rivals i.e. KFC or Burger king.