Location Selection
McDonald’s mainly located its shops in two particular areas in accordance with criteria described as follows (Osterwalder et al., 2009a):
Business Areas: McDonald's open their branches in business areas where the target points are the corporate people and the working class.
Play Lands and shopping areas: The company introduce their services according to target customers, e.g.; Model town link road.
2.4.1 Layout Design
The company makes and implement the strategic importance of layout decision in the following way.
McDonald's offers a general environment and overall working that includes the personnel level, service and product layout (Osterwalder et al., 2009b)
Exterior: The company sets its premises …show more content…
McDonald’s through the years introduced innovation in: Indoor seating (1950s), Drive-through window (1970s), Adding breakfast to the menu (1980s), Adding play areas (1990s) (Slideplayer.com, 2006a). In 2016 McDonald’s introduced the retail design concept “Experience of the Future” which provide to the customers interact with the store such as touch-screen ordering, customisable burgers and table service. This redesign has helped to increase sales (Banks, 2016)
It is in following with McDonald’s new kitchen layout is presented: New sandwiches assembled in order with the elimination or shortening some steps, prepared only patty ahead and the rest food when the customer’s order, in addition new bun toasting machine, also new positioning condiment containers, savings of $100,000,000 per year in food costs (Slideplayer.com, …show more content…
The budget research to £530 million each year on locally-sourced ingredients in its UK supply chain. The most important suppliers came from the UK and Ireland. (Thefranchisemagazine.net, 2018)
The first CEO of McDonald's Ray Kroc, developed a business model known as “The three -legged stool” concept: Suppliers, Employees and Franchisees. All the three elements of the McDonald’s system are equally vital partners in McDonald’s success. The idea is that all three legs of a stool need to be equally to support the weight (Hydrocarbons21.com, 2013).
McDonald’s works with many supply partners (purchase food, equipment, packaging and others) based on strict guidelines ensure stores get the best products with special specifications and standards. These are connected between each other by means of the Electronic-Procurement platform (E- Procurement), carrying out the purchases and sales of supplies This system is managed for global franchises and allows collecting the information more efficiently than the traditional Dial -up Networking. They supply to countries in different part of the world (Rulez,