I. Organizational Background
Overview of McDonald's Corporation
McDonald's Corporation's history began in California, USA in the year 1953 with their founder Mr. Raymond Albert Croc. It is currently the leading global fast food retailer operating more than 30,000 local restaurants, serving approximately 50 million people everyday in more than 119 countries worldwide. Some of McDonald's products are the world famous French Fries, Chicken McNuggets, Egg McMuffins, Sundaes and Quarter Pounder. It is one of the world's most well known and valuable brands and holds a major share in the fast-food business in almost every country they operate. (McDonald's corporation, 2006). The famous company operates other restaurant brands like Aroma Café and Boston Market and has a minority stake in Pret a Manager. (Hoover's, Inc., 2007) McDonald's acquires Boston market for $173.5 million in the year 2000. (About, Inc., 2007). The company also had a majority stake in Chipotle Mexican Grill. Until December, 2003 it also owned Donatos Pizza. It also has a subsidiary, Redbox, which started in the year 2003 as 5.5 meter wide automated convenience stores. McDonald's Corporation's business model is slightly different from that of most other fast food chains. In addition to the normal franchise fees, supplies and percentage of sales, the company also collects rent, partially linked to sales. According to the condition of the franchise agreement, the Corporation owns the properties on which McDonald's franchises are located. (Biz/ed, 1996-2007)
Market Place and Competitors
Quick Service Restaurant industry sales in USA are expected to reach a record $537 billion in 2007?a solid 5.0 percent increase over 2006 sales?announced by the Nation ...