Mcdonalds Around the World
EMG 20
Case Study No. 1
McDonald’s: Serving Fast Food around the World
Ray Kroc opened the first McDonald’s restaurant in 1955 in the United States. He offered a limited menu of high quality; moderately priced food served fast spotless surroundings. McDonald’s QSC&V (quality, service, cleanliness, and value) was a hit. The chain expanded into every state in the nation. By 1983 it had more than 6,000 restaurants in the United States, and by 1995 it had more than 18,000 restaurants in 89 countries. In 1995 alone, the company built 2,400 restaurants, and by 2001 it had more than 29,000 restaurants in 121 countries.
In 1967, McDonald’s opened its first restaurant outside the United States- in Canada. Since then, its international growth accelerated. In 1995, the “Big Six” countries that provided about 80 percent of the international operating income were Canada, Japan, Germany, Australia, France, and Britain. Yet fast food has barely touched many cultures. The opportunities for expanding the market are great, as 99 percent of the world populations are not yet McDonald’s customers. For example, in China, with a population of 1.2 billion people, there were only 62 McDonald’s restaurants in 1995. McDonald’s vision is to be the major player in food services around the world.
In Europe, McDonald’s maintains a small percentage of restaurant sales but commands a large share of the fast-food market. It took the company 14 years of planning before it opened a restaurant in Moscow in 1990. But the planning paid off. After the opening, people were standing in line for up to two hours for a hamburger. It has been said that McDonald’s restaurant in Moscow attracts more visitors (on average 27,000 daily) than Lenin’s mausoleum (about 9,000 people), which used to be the place to see. The Beijing opening in 1992 attracted some 40,000 people to the largest (28,000 square foot) McDonald’s restaurant in China at a location where some 800,000 pedestrians pass by every day.
Case Study No. 1
McDonald’s: Serving Fast Food around the World
Ray Kroc opened the first McDonald’s restaurant in 1955 in the United States. He offered a limited menu of high quality; moderately priced food served fast spotless surroundings. McDonald’s QSC&V (quality, service, cleanliness, and value) was a hit. The chain expanded into every state in the nation. By 1983 it had more than 6,000 restaurants in the United States, and by 1995 it had more than 18,000 restaurants in 89 countries. In 1995 alone, the company built 2,400 restaurants, and by 2001 it had more than 29,000 restaurants in 121 countries.
In 1967, McDonald’s opened its first restaurant outside the United States- in Canada. Since then, its international growth accelerated. In 1995, the “Big Six” countries that provided about 80 percent of the international operating income were Canada, Japan, Germany, Australia, France, and Britain. Yet fast food has barely touched many cultures. The opportunities for expanding the market are great, as 99 percent of the world populations are not yet McDonald’s customers. For example, in China, with a population of 1.2 billion people, there were only 62 McDonald’s restaurants in 1995. McDonald’s vision is to be the major player in food services around the world.
In Europe, McDonald’s maintains a small percentage of restaurant sales but commands a large share of the fast-food market. It took the company 14 years of planning before it opened a restaurant in Moscow in 1990. But the planning paid off. After the opening, people were standing in line for up to two hours for a hamburger. It has been said that McDonald’s restaurant in Moscow attracts more visitors (on average 27,000 daily) than Lenin’s mausoleum (about 9,000 people), which used to be the place to see. The Beijing opening in 1992 attracted some 40,000 people to the largest (28,000 square foot) McDonald’s restaurant in China at a location where some 800,000 pedestrians pass by every day.