LOCATING & LAYING OUT OUT THE FAST FOOD BUSINESS

PRESENTED BY: VINEET GARG NEHA GARG

History
If you work just for money, you'll never make it, but if you love what you're doing and you always put the customer first, success will be yours - Ray Kroc, Founder, McDonalds In the year 1954, a milk-shake machine salesman, Raymond Kroc found that one of his clients the McDonalds had purchased eight multimixers! The next day Kroc talked the brothers into a deal which allowed him to sell McDonalds franchises for a price of $950. In return Kroc would keep 1.4% of all sales and the brothers would get 0.5% back.

Brand McDonalds Not Selling a Burger

Ray realized that he had to have a process in place to make it succeed. Hence, he emphasized on precision to achieve efficiency and delved into setting up an operating service system that would give the same quantity and quality of service to people in any of its outlets anywhere in the country that too at the same prices. Ray aimed to achieve recurring business through systems competence and not just the quality of a single store. Evidently Kroc was subliminally selling a service and not a product (burger) - thereby giving birth to the franchising industry!

Philosophy of McDonalds in Going International

A Unique Philosophy Ray Kroc wanted to build a restaurant system that would be famous for food of consistently high quality and uniform methods of preparation. He wanted to serve burgers, buns, fries and beverages that tasted just the same in Alaska as they did in Alabama. working not for McDonalds, but for themselves, together with McDonalds. In business for yourself, but not by yourself. Rewarding Innovation Ray Kroc believed in the entrepreneurial spirit, and rewarded his franchisees for individual creativity.

McDonalds- Localization & Standardization

Think Global, Act Local and Sell like a Retailer McDonalds followed this international mantra while opening doors to the Indian subcontinent. With respect to the cultural and traditional sentiments, not only did McDonalds not serve its most popular product The BIGMAC (a beef burger) but also developed an egg-less mayonnaise for the first time in the worldwide system. Furthermore, each restaurant kitchen was designed to maintain separate Vegetarian and Non-Vegetarian food counters.

Brand Communication
The starting point was to clearly change the consumer perceptions from foreign, American, not knowing what to expect, discomfort to new/different to Indian, values families and culture, comfortable and easy. friendly place where families would love to enjoy and have a special time. However, the onus was to consistently build and protect the brand while persistently committed to fundamentals of QSC&V (Quality, Service, Cleanliness & Value).

In India, there are no Big Macs because the Hindu people dont eat beef. However, they have the Maharaja Mac, which is a Big Mac made of lamb or chicken meat. There is also a vegetarian burger, the McAloo Tikki.

In fish-loving Norway, they have the McLaks, a sandwich made of grilled salmon and dill sauce.

In Costa Rica, unsurprisingly, you can order Gallo Pinto, meaning rice and beans

Rice-loving Hong Kong, has of course Rice Burgers, where the burgers are in between, not burger buns, but two patties of glutinous rice.

Japan totally reinvents McDonalds with its Ebi Filet-O (shrimp burgers), Koroke Burger (mashed potato, cabbage and katsu sauce, all in a sandwich), Ebi-Chiki (shrimp nuggets) and Green Tea

Its not Greek without pita, so when in Greece, have a Greek Mac, a burger made of patties wrapped in pita.

Moving forward
Three years ago, McDonalds changed the way it talks to customers and employees around the world by uniting behind one voice, one campaign, - im lovin it. The secret behind the worldwide success of McDonalds is its consistency. Today, McDonalds is the world's leading food service retailer with more than 31,000 restaurants in 118 countries serving 50 million customers each day.