The business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee." Speedee was eventually replaced with Ronald McDonald by 1967 when the company first filed a
McDonald's first filed for a U.S. trademark on the name McDonald's on May 4, 1961, with the description "Drive-In Restaurant Services", which continues to be renewed through the end of December 2009.[10] In the same year, on September 13, 1961, the company filed a logo trademark on an overlapping, double arched "M" symbol.[11] The overlapping double arched "M" symbol logo was temporarily disfavored by September 6, 1962, when a trademark was filed for a single arch, shaped over many of the early McDonald's restaurants in the early years.[12] The modern double arched "M" symbol that continues to be in use today at McDonald's restaurants did not appear until November 18, 1968, when the company filed a
The first McDonald's restaurants opened in the
The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955[14] , the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion, and the company became listed on the public stock markets in 1965.[15] Kroc was also noted for aggressive business practices, compelling the McDonald brothers to leave the fast food industry. The McDonald brothers and Kroc feuded over control of the business, as documented in both Kroc's autobiography and in the McDonald brothers' autobiography. The site of the McDonald brothers' original restaurant is now a monument.[16]
With the expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life. Its prominence has also made it a frequent topic of public debates about obesity, corporate ethics and consumer responsibility.
Corporate overview
Facts and figures
McDonald's restaurants are found in 119 countries[17] and territories around the world and serve nearly 47 million customers each day. McDonald's operates over 31,000 restaurants worldwide, employing more than 1.5 millionpeople.[17] The company also operatesother restaurant brands, such asPiles Café.Focusing on its core brand, McDonald's began divesting itself of other chains it had acquired during the 1990s. The company owned a majority stake in Chipotle Mexican Grill until October 2006, when McDonald's fully divested from Chipotle through a stock exchange.[18][19] Until December 2003, it also owned Donatos Pizza. On August 27, 2007, McDonald'ssold Boston Market to Sun Capital Partners.[20]
Types of restaurants
Most standalone McDonald's restaurants offer both counter service and drive-through service, with indoor and sometimes outdoor seating. Drive-Thru, Auto-Mac, Pay and Drive, or " Mc Drive" 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; it was first introduced in
As of the end of 2003 there were over 600 McCafés worldwide.Some locations are connected togas stations/convenience stores,[22] while others called McExpress have limited seating and/or menu or may be located in a shopping mall. Other McDonald's are located in Wal-Mart stores. Mc Stop is a location targeted at truckers and travelers which may have services found at truck stops.[23]
Playgrounds
Some McDonald's in suburban areas and certain cities feature large indoor or outdoor playgrounds. The first Play Place with the familiar crawl-tube design with ball pits and slides was introduced in 1987 in the
The "R Gym" features the Toddler Zone, an active play environment with age-appropriate games that develop physical coordination and social skills; the Active Zone, designed for children aged four to eight that promotes physical fitness through fun play; the Sports Zone which features a series of sports-oriented activities to promote aerobic exercise for children aged nine to 11; the Parent Zone which features seating and provides a monitoring area for their children; and the Dining Area which allows families to eat.
Redesign
In 2006, McDonald's introduced its "Forever Young" brand by redesigning all of their restaurants, the first major redesign since the 1970s.[25][26]The design includes the traditional McDonald's yellow and redcolors, but the red is muted to terra cotta, the yellow was turned golden for a more "sunny" look, and olive and sage green were also added. To warm up their look, the restaurants have less plastic and more brick and wood, with modern hanging lights to product
e a softer glow. Contemporary art or framed photographs hang on the walls.The exterior has golden awnings and a "swish brow" instead of the traditional double-slanted mansard roof.The restaurants feature areas
- The "linger" zone offers armchairs, sofas, and free Wi-Fi connections.[27]
- The "grab and go" zone features tall counters with bar stools for customers who eat alone; plasma TVs offer them news and weather reports.
- The "flexible" zone is target e d toward families and have booths featuring fabric cushions with colorful patterns and flexible seatin g.
- Different music targeted to each zone.
Branches in the
Business model
McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly. The remainder are operated by others through a variety of franchise agreements and joint ventures. The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may also collect rent, which may also be calculated on the basis of sales. As a condition of many franchise agreements, which vary by contract, age, country, and location, the Corporation may own or lease the properties on which McDonald's franchises are located. In most, if not all cases, the franchisee does no town the location of its restaurants.The
Shareholder dividends
McDonald's has increased shareholder dividends for 25 consecutive years[29] making it one of the S&P 500 Dividend Aristocrats[30][31] with the highest annual dividends of publicly traded companies in the fast food industry.[32]
Controversies
As a prominent example of the rapid globalization of the American fast food industry, McDonald's is often the target of criticism for its menu, its expansion, and its business practices.The Mc Libel Trial, also known as McDonald's Restaurants v Morris & Steel, is an example of this criticism. In 1990, activists from a small group known as London Greenpeace (no connection to the international group Greenpeace) distributed leaflets entitled What's wrong with McDonald's?, criticizing its environmental, health, and labor record. The corporation wrote to the group demanding they desist and apologize, and, when two of the activists refused to back down, sued them for libel in one of the longest cases in British civil law.A documentary film of the McLibel Trial has been shown in several countries.The term "Mc Job" was added to Merriam-Webster's Collegiate Dictionary in 2003,[33] over the objections of McDonald's. In an open letter to Merriam-Webster, JimCantalupo, former CEO of McDonald's, denounced the definition as a "slap in the face" to all restaurant employees, and stated that "a more appropriate definition of a 'Mc Job' might be 'teaches responsibility.'" Merriam-Webster responded that "we stand by the accuracy and appropriateness of our definition." [34] Mc Job is defined by Merriam-Webster's Online Dictionary as "a low-paying job that requires little skill and provides little opportunity for advancement".[35]In 1999, French anti-globalisation activist José Bové vandalized a half-built McDonald's to protest against the introduction of fast food in the region.[36]In 2001, EricSchlosser's book Fast Food Nation included criticism of the business practices of McDonald's. Among the critiques were allegations that McDonald's (along with other companies within the fast food industry) uses its political influence to increase its profits at the expense of people's health and the social conditions of its workers. The book also brought into question McDonald's advertisement techniques in which it targets children. While the book did mention other fast-food chains, it focused primarily on McDonald's.In 2002, vegetarian groups, largely Hindu and Buddhist, successfully sued McDonald's for misrepresenting their French fries as vegetarian.[37]Morgan Spurlock's 2004 documentary film Super Size Me said that McDonald's food was contributing to the epidemic of obesity in society, and that the company was failing to provide nutritional information about its food for its customers. Six weeks after the film premiered, McDonald's announced that it was eliminating the super size option, and was creating the adult happy meal.The soya that is fed to McDonald’s chickens is supplied by agricultural giant Cargill and comes directly from
Arguments in defense
In response to public pressure, McDonald's has sought to include more healthy choices in its menu and has introduced a new slogan to its recruitment posters: "Not bad for a McJob".[39] (The word Mc Job,first attested in the mid-1980s[40] and later popularized by Canadian novelist Douglas Coupland in his book Generation X, has become a buzz word for low-paid, unskilled work with few prospects or benefits and little security.)McDonald's disputes the idea. In 2007, the company launched an advertising campaign with the slogan "Would you like a career with that?" on Irish television, outlining that their jobs have many prospects.
In a bid to tap into growing consumer interest in the provenance of food, the fast-food chain recently switched its supplier of both coffee beans and milk.
Environmental record
Discarded fast food packaging contributes to the urban litter problem in cities worldwide In April 2008, McDonald's announced that 11 of its Sheffield restaurants have been using a biomass trial that had cut its waste and carbon footprint by half in the area. In this trial, waste from the restaurants were collected by Veolia Environmental Services and used to produce energy at a power plant. McDonald's plans to expand this project, although the lack of biomass power plants in the
The U.S. Environmental Protection Agency has recognized McDonald's continuous effort to reduce solid waste by designing more efficient packaging and by promoting the use of recycled-content materials.[47] McDonald's reports that they are committed towards environmental leadership by effectively managing electric energy, by conserving natural resources through recycling and reusing materials, and by addressing water management issues within the restaurant.[48]In an effort to reduce energy usage by 25% in its restaurants, McDonald's opened a prototype restaurant in
Legal cases
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 company has threatened many food businesses with legal action unless they drop the Mc or Mac from their trading name. In one noteworthy case, McDonald's sued a Scottish café owner called McDonald, even though the business in question dated back over a century (Sheriff Court Glasgow and Strathkelvin,November 21, 1952). On September 8, 2009, McDonald's Malaysian operations lost a lawsuit to prevent another restaurant calling itself Mc Curry McDonald's lost in an appeal to
Products
A McDonald's Big Mac combo meal served with French fries and Coca-Cola.Main article: McDonald's products See also: McDonald's products (international) McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offer salads and vegetarian items, wraps and other localized fare.
Headquarters
McDonald's Plaza,the headquarters of Mc Donald'sThe McDonald's headquarters complex, McDonald's Plaza, is located in Oak Brook, Illinois. It sits on the site of the former headquarters and stabling area of Paul Butler, the founder of Oak Brook.[57] McDonald's moved into the Oak Brook facility from an office within the Chicago Loop in 1971.[58]
Advertising
Main article: McDonald's advertising
McDonald's has for decades maintained an extensive advertising campaign. In addition to the usual media (television, radio, and newspaper), the company makes significant use of billboards and signage, sponsors sporting events ranging from Little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds. Nonetheless, television has always played a central role in the company's advertising strategy.To date, McDonald's has used 23 different slogans in
Global Operations
Countries with McDonald's stores
McDonald's has become emblematic of globalization, sometimes referred to as the "McDonaldization" of society. The Economist magazine uses the"Big Mac Index": the comparison of a Big Mac's cost in various world currencies can be used to informally judge these currencies' purchasing power parity. Scandinavian countries lead the Big Mac Index with four of the five most expensive Big Mac's.
DESEASE
National sample day is what McDonald's is calling an event Thursday, when it rolls out a new Southern Style Chicken breakfast biscuit sandwich (480 calories) from 7 to 10:30 a.m., and then debuts a Southern Style chicken sandwich (420 calories) after breakfast until 7 p.m. And ... It's a freebie.*
(with the purchase of any medium or large beverage at participating restaurants while supplies last. please consult a physican before trying any fast food that contains what it advertised as parts of chickens.)
It all sounds McNugget-riffic . And McDonald's expects to give out more than one million breakfast sandwiches and five million chicken sandwiches nationwide.
Or, maybe all at the McDonald's on 101 W. Manchester in L.A. (that's East of the Harbor freeway, a bit north of
The