McDonald's
McDonald's Corporation () is the world's largest chain of
fast-food restaurants.
The company was founded in
1940 with a
restaurant opened by siblings
Dick and Mac McDonald, but it was their introduction of the "Speedee Service System" in
1948 that established the principles of the
fast-food restaurant. However, the company today dates its "founding" to the opening of
CEO Ray Kroc's first
franchised restaurant, the company's ninth, in
1955.
McDonald's restaurants are found in 118 countries and territories around the world. They serve nearly 50 million customers each day. The famous company operates other restaurant
brands, such as
Aroma Café,
Boston Market and
Chipotle Mexican Grill, and has a minority stake in
Pret a Manger. Until
December 2003, it also owned
Donatos Pizza. It also has a subsidiary,
Redbox, which started in
2003 as 18-foot (5.5 m) wide automated
convenience stores, but
as of 2005, has focused on DVD rental machines.
Most standalone McDonald's restaurants offer both counter and
drive-through service, with indoor and sometimes outdoor seating. Drive-Thru, Auto-Mac, Pay and Drive or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the latter two steps are frequently combined. In some countries "McDrive" locations near
highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit
drive-through service. There are also a few locations, located mostly in downtown districts, that offer Walk-Thru service in place of Drive-Thru.
Specially themed restaurants also exist, such as "Rock-and-Roll McDonald's" 1950s themed restaurants. Some McDonald's in suburban areas and certain cities feature large indoor or outdoor
playgrounds, called "McDonald's PlayPlace" (if indoors) or "Playland" (outdoors). The first PlayPlace with the familiar crawl-tube design with ball pits and slides was introduced in 1987 in the USA, with many more being constructed soon after. Some PlayPlace playgrounds have been renovated into "R Gym" areas, which emphasize physical activity. [
1]
The McDonald's Corporation's
business model is slightly different from that of most other fast-food chains. In addition to ordinary
franchise fees, supplies, and percentage of sales, McDonald's also collects
rent, partially linked to sales. As a condition of the franchise agreement, the Corporation owns the properties on which most McDonald's franchises are located. The UK business model is different, in that fewer than 30% of restaurants are franchised, with the majority under the ownership of the company. McDonald's trains its franchisees and others at
Hamburger University in
Oak Brook, Illinois.
According to
Fast Food Nation by
Eric Schlosser (2001), nearly one in eight workers in the
U.S. have at some time been employed by McDonald's. The book also states that McDonald's is the largest private operator of playgrounds in the U.S., as well as the single largest purchaser of
beef,
pork,
potatoes, and
apples. The meats McDonald's uses vary with the culture of the host country.
McDonald's founders' (
Dick and Mac McDonald) first venture into the food business was in 1937, when they opened a hot dog stand in
Arcadia, California. They opened the first McDonald's restaurant on May 15, 1940, in
San Bernardino, California. Hamburgers proved to be their most popular product, so in 1948 the brothers introduced their "Speedee Service System," a streamlined assembly line for hamburgers that allowed them to produce burgers quickly and inexpensively. Their cheap burgers were very successful, and in 1953 they began to franchise McDonald's restaurants. Entrepreneur
Ray Kroc visited the first restaurant in 1953, and sensing its potential, he convinced the brothers to put him in charge of franchising. He later purchased the brothers' interest in the company, and oversaw its worldwide expansion.
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McDonald's has tried to shore up their environmental image. |
McDonald's faces varying problems. Some of these are unique to franchising. As one of the world's largest and best recognized franchise systems, it must endeavour to successfully deal with matters of internal cohesion between the interests of its franchisees and that of the franchisor. At the same time, its global reach and broadly standard product line and level of service have led to McDonald's becoming the target of anti-
globalization protests, and as the highest-profile
fast food company, it is often blamed for
obesity and excessive
packaging waste. Its moves to protect its reputation and trademarks have at times been seen as heavy-handed.
As the world's largest restaurant chain, McDonald's also finds itself a target for external criticism. Even though its foreign franchise locations are usually locally owned and use locally-produced foods, the company is seen as a symbol of American domination of economic resources. Urban legends about the company and its food are plentiful and it is often the target of unusual lawsuits.
McDonald's has been the target of criticism for allegations of exploitation of
entry-level workers, closing down stores once the workers
unionize, use of
sweatshop labor to produce "happy meal" toys,
ecological damage caused by agricultural production and industrial processing of its products, selling unhealthy food, production of packaging waste, exploitative
advertising (especially targeted at children, minorities, and low-income people), and contributing to suffering and exploitation of
livestock.
In the early
1990s, two
British activists,
David Morris and
Helen Steel founded a group opposed to McDonald's and distributed leaflets making similar charges against the company. Allegedly, McDonald's sent dozens of spies who intercepted and monitored their meetings. Later, McDonald's exploited Britain's
libel laws (which automatically side with the defendant of the case, as opposed to the
American system) and sued Morris and Steel. McDonald's hired a strong legal team, and Morris and Steel were forced to represent themselves. What followed became known as the "
McLibel Case," where McDonald's advertising techniques and business practices were scrutinized in the
High Court of Justice in
London. In
June 1997, the justice presided over the case ruled largely in favor of McDonald's, but also agreed that some of the claims made by Morris and Steel were true and justified. An appeal made by Morris and Steel saw the first ruling changed at the expense of McDonald's.
In 2001,
Eric Schlosser's book
Fast Food Nation included scathing criticism of McDonald's' business practices. Among the critiques are allegations that McDonald's (along with other companies within the fast-food industry) uses its political influence to increase their own profits at the expense of people's health and the social conditions of its workers. The book also brings into question McDonald's advertisement techniques where it targets children taking advantage of their innocence. While the book does mention other fast-food chains, it focuses primarily on McDonald's.
In June 2004, the UK's
Private Eye reported that McDonald's was handing out meal vouchers, balloons, and toys to children in
pediatric wards. This was especially controversial as the report was made within weeks of a
British Government report stating that the present generation may be the first to die before their parents due to spiraling
obesity in the British population.
Also in 2004,
Morgan Spurlock's
documentary film Super Size Me produced negative publicity for McDonald's, with allegations that McDonald's food was contributing heavily to the epidemic of
obesity in American society, and failing to provide nutritional information about its food for its customers. For 30 days Spurlock ate nothing but McDonald's (supersizing whenever asked) and by the end of the month Spurlock reported mood swings,
sexual dysfunction, and had gained 24.5 pounds (11.11 kg). Subsequent to the showing of the film at the
Sundance Film Festival, but before its cinematic release, McDonald's phased out its Supersize meal option and began offering several healthier menu items, though no link to the film was cited in this decision. They also began a practice of putting all nutritional information for all menu items in light grey
small print on the reverse of their tray liners. Several other people later similarly ate only at McDonald's for a month, but by choosing menu items more judiciously and exercising frequently, showed no ill effects (Spurlock ate everything on the menu at least once, always accepted upsizing requests of McDonald's employees, and continued to eat after he was full). Merab Morgan, a North Carolina woman, was even able to lose weight. She claimed that the transparency of nutritional information made it easy to control her daily caloric intake.
Main article: McDonald's legal cases''
McDonald's has been involved in a number of lawsuits and other legal cases, most of which involved trademark disputes. The McLibel case, in which the company won a pyrrhic victory in a British libel suit is probably the best known.
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Countries with McDonald's stores |
McDonald's has become emblematic of
globalization, sometimes referred as the "
Mcdonaldization" of society.
The Economist magazine uses the "
Big Mac index" (the price of a
Big Mac) as an informal measure of
purchasing power parity among world
currencies. Because McDonald's is closely identified with
United States culture and lifestyle, its international business expansion has been termed part of
Americanization and American
cultural imperialism. McDonald's remains a target of anti-globalization protesters worldwide.
Thomas Friedman observed that no country with a McDonald's had gone to war with another. His
"Golden Arches Theory" has since been disproved, first when the U.S. invaded Panama (which has had McDonald's restaurants since the late-
1970s) in 1989, and later when
NATO bombed Serbia in 1999.
Some observers have suggested that the company should be given credit for increasing the standard of service in markets it enters. A group of anthropologists in a study entitled
Golden Arches East (Stanford University Press, 1998, edited by James L. Watson) looked at the impact McDonald's had on
East Asia, and
Hong Kong in particular. When it opened in Hong Kong in 1975, McDonald's was the first restaurant to consistently offer clean restrooms, driving customers to demand the same of other restaurants and institutions.
In addition to its effect on business standards, McDonald's has also been instrumental in changing local customs. By popularizing the idea of a quick restaurant meal, Watson's study suggests, McDonald's led to the easing or elimination of various taboos, such as that on eating while walking in Japan. McDonald's also flattens the social strata during dining -- there is no problem of
losing face for certain customers (who might be embarrassed when someone else ordered a more expensive item in a restaurant; as the food at McDonald's is all similarly priced, this ceased to be an issue).
The larger McDonald's grows, the more vulnerable it becomes to negative customer perceptions. In light of this, McDonald's has shown an unusual level of desire to cater to varying cultural requirements, such as by customizing its menu to each country. The introduction of the
Filet-O-Fish to cater to
Catholic abstinence is one example of this. However, the company at one point also became involved in controversy when it was revealed that french fries were cooked in non-kosher and non-halal beef tallow, which greatly upset Muslim, Jewish, Hindu and vegetarian customers, to whom it had been claimed that the fries were in fact kosher.
In other cases, the firm has shown itself ready to adjust its business practices. When environmentally damaging packaging and waste produced by the company's restaurants became a public concern, McDonald's started a joint project with
Friends of the Earth to eliminate the use of
polystyrene containers and to reduce the amount of waste produced.
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A typical McDonald's Menu |
McDonald's offers a variety of fast-foods, desserts, and beverages. Some items are only specific to certain regions. In the beginning of
2006, McDonald's started printing
Nutrition Facts on the packaging of their products after pressure from concerned individuals to include them on the packaging, citing that the often hidden nutrition charts and pamphlets were not comprehensive enough.
To date, McDonald's has used a total of twenty-three different slogans in
United States advertising, as well as a few other slogans for select countries and regions.
*In
Oak Brook, Illinois, where the company headquarters is located, is the first
Hamburger University, a school for future executive managers of regional franchises. Adjacent to the building is a McDonald's-themed
hotel. Similar "Hamburger U" training schools have been set up around the world.
*The first McCafe store in the world was opened in
Melbourne in 1993
*Current members of the
board of directors of McDonald's are:
Hall Adams,
Edward Brennan,
Robert Eckert,
Enrique Hernandez,
Jeff Hunter,
Richard Lewis,
Andrew McKenna,
Cary McMillan, and
Michael J. Roberts.
*McDonald's is well known for its sponsorship in American sports. It is the official fast food of the
U.S. Olympic Team, and has former
NBA superstar
Michael Jordan as a spokesperson. McDonald's is also famous for its longtime sponsorship of
Bill Elliott's
NASCAR team.
Kasey Kahne now carries the Golden arches on his #9 car. McDonald's also sponsors
Sebastien Bourdais' #1 car in CART Champ Car competition.
*In the
1980s, the
New York Mets had a player in their
farm system named Ronald McDonald. He would have been an interesting addition to a squad that already featured a
Howard Johnson. However, McDonald never made it to the
major leagues.
* The volume of food used annually by UK McDonalds Restaurants according to the McDonalds Area Management Guide:
Beef: 32,000 Tonnes
Chicken: 21,500 Tonnes
Potato products: 86,000 Tonnes
Eggs: 100 Million
Buns: 667 Million
Milk shake and sundae: 40 Million Litres
Cheese: 7,250 Tonnes
*McDonald's Canada incorporates a maple leaf into the Golden Arches logo.
*The 1000th McDonald's restaurant is located in a mall in the
Treptow area of
Berlin,
Germany.
*
McDonald's restaurants*
McDonald's menu items*
Two all beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun.*
McDonald's Menu Song*
McDonaldland:
Ronald McDonald,
Birdie the Early Bird,
Grimace,
Hamburglar,
The Fry Kids,
Mayor McCheese*
Happy Meal,
Mighty Kids Meal*
Pret a Manger,
Chipotle Mexican Grill, and
Donato's Pizza are McDonald's subsidiaries
*
McWords - the use of the
"Mc" as a prefix to create a (usually) pejorative term
*
I'm Lovin' it*
Golden Arches*
List of countries with McDonald's franchises*
McDonald's TV campaigns and slogans*
McDonald's urban legends*
George Ritzer's
McDonaldization thesis
*
McMurder in
San Ysidro, California*
Don Gorske, a McDonald's enthusiast who has eaten over 20,000 Big Mac hamburgers
*
Lincoln Fry, a
viral marketing campaign centering around what is supposedly a McDonald's fry with
Abraham Lincoln's likeness on it
*
Burger King - McDonald's biggest rival
*
Wendy's - McDonald's 2nd biggest rival
*
List of pop culture references to real restaurants*
List of promotions by McDonald's*
M.C. Kids*
Fast Food Nation, by
Eric Schlosser*
Super Size Me, a film critical of McDonald's by
Morgan Spurlock.
*
Fast food advertising*
SupersizeMyPay.Com, a Nz union campaign to organise McDonalds workers
*
Sandy's Drive-In, early competitor to McDonald's. Has its origin in McDonald's.* The emergence and evolution of McDonald's business in Japan is documented in
Terry Sanders' film
The Japan Project: Made in America.
* Morgan Spurlock's diet of nothing but McDonald's for 30 days is documented in
Super Size Me.
* McLibel 2005, a remake of
McLibel: Two World's Collide (1997), from Spanner Films http://www.spannerfilms.net/?lid=161
*In the 1973 film
Sleeper, Miles Monroe (
Woody Allen) stops at a McDonald's from the year 2173, whose sign showing the number served to date as a '1' followed by fifty-three 0's.
*In one
Calvin and Hobbes strip, Calvin refers to "McZargalds, over 75 Million Earthlingburgers served."
*In a skit on his popular show,
Chappelle's Show,
Dave Chappelle portrays a young black man (Calvin) who gets a job at the local WacArnolds.
*In the movie
Coming to America Eddie Murphy and Arsenio Hall go to work at a franchise called McDowell's, which is so similar to McDonald's that the owner is constantly shooing off people taking pictures of the place and accusing him of copyright infringement. Apparently his "differences" were the "golden arcs" rather then "arches" and his signature hamburger was the "Big Mic (or Mc)" which distinguishes itself from the Big Mac only by not having sesame seeds on its bun.
*In the anime series
InuYasha Kagome, a main character sometimes is seen eating at a restraunt called "Wacdnalds." Its logo is a W which is identical to the golden arches of McDonalds, except it is upside-down. In another anime,
Please Save My Earth, a restaurant with a similar logo appears.
*In the animated series
Beavis & Butthead, the duo works in a fictitious fast food restaurant called Burger World with a golden upturned arches as a sign.
*In the video game series Space Quest, a recurring location is the fictitious fast food restaurant called Monolith Burger which has a more pointy version of the golden arches as its sign.
*On an episode of Robot Chicken, Mayor McCheese is a real mayor.
*In the cartoon Invader Zim'' there is a fast food chain called McMeaties
*In the Anime Series
SuperGALS the McDonalds Arch Logo can be seen, however it's flipped upsided down.
In 1986,
Guantánamo became host to Cuba's first and only McDonald's restaurant, as well as a
Subway.
These
fast food restaurants are on base, and not accessible to Cubans. It has been reported that detainees showing good behavior have been rewarded not only with dates, pita bread and even
Twinkies, but also '
Happy Meals',
hamburgers or
Filet-O-Fish sandwiches from the McDonald's located near the Navy Exchange.
*
McDonald's official worldwide website
*
DMOZ: McDonald's, directory of links
*
McSpotlight, an "Anti-McDonald's extravaganza"
*
McDonald's breakfast @ Review the World*
News for McDonald's ® Franchisees, database of insightful articles and news.
*
McDonald's Company Ratings and Political Contributions*
McDonald's Talk, an
Internet forum of McDonald's employees
*
McDonald's McMakeover*
McDonald's grabs a piece of the apple pie, Gary Younge,
The Guardian, March 23, 2005.
