McDonalds History

McDonald's is a restaurant that everybody knows. McDonald was created

by sibling Dick and Mac McDonald. The Brothers started out with opening
a hotdog stand in 1937 called Airdrome. So the brother decided to
expand the business and come up with a different type of restaurant. The
Airdrome building 40 miles to San Bernardino California, where they open
the first McDonalds restaurant, on U.S. Route 66, at 14th and E St., on
May 15. McDonald opens in 1940 in San Bernardino, California. The menu
consisted of 25 items and most of was barbecue products. McDonald
became a popular place for teen to hang out at. So McDonald stays open
for several years but they wanted to close down. The reason they closed
down they want to do something different with their restaurant. So they
closed down for several months. They brother wanted to be the first
restaurant that implement "Speedee Services". They came up with this
idea because they most there profit off of burgers, and since the burger
did not take that long to make they could have fast services. In 1948
McDonald establish the principles of the modern fast-food restaurant.
They also started selling French fries and milkshakes to go along with
their burgers. So they became popular in San Bernardino, California, so
the brother decided to franchise the restaurant. The second McDonald
open in Phoenix, Arizona. The third open in Saginaw, Michigan and the
forth open in Downey, California. In 1961 The McDonald sold the business
to a man name Ray Kroc. Ray Kroc has been working with McDonald for
about six years helping the franchise expand. So it was a smart move by
McDonald brother to give their business to him. So McDonald really
branch out in the 60's. In 1967 McDonald open there first restaurant
outside America. They open one in Richmond, British Columbia. In 1970
McDonald opens in Costa Rica which is the third country that has a
McDonalds. It was the first restaurant in Latin America. In 1971
McDonalds open in Tokyo, Japan. The business was really spreading
across the world. By 1974 McDonald had 3000 plus McDonald across the
world. There are 31000 number of location in overall worldwide. Its
head quarter at Oak Brook in U.S.A.

A brief history of McDonald's

The first McDonald's was built in 1940 by the McDonald brothers (Dick and
Mac).
1954
• Ray Kroc became the first franchisee appointed by Mac and Dick
McDonald in San Bernardino, California.
1955
• Ray Kroc opened his first restaurant in Des Plaines, Illinois (near
Chicago), and the McDonald's Corporation was created.
1957
• Quality, Service, Cleanliness and Value (Q.S.C. & V.) became the
company motto.
1959
• The 100th McDonald's opened in Chicago.
The McDonald brothers (Dick right and Mac canter) discussing plans with
an executive.
1961
• Ray Kroc bought all rights to the McDonald's concept from the
McDonald's brothers for $2.7 million.
• Hamburger University opened in Elk Grove, near Chicago.
1963
• One billion hamburgers sold.
• The 500th restaurant opened.
• The 500th student graduates from Hamburger University.
• Ronald McDonald made his debut.
• McDonald's net income exceeded $1 million.
1964
• Filet-o-Fish sandwich introduced.
1965
• McDonald's Corporation went public. Per earnings ratio varies from 10 to
22 during year; stock price range, 15 - 33.5.

1966
• McDonald's listed on the New York stock exchange on the 7th May.
1967
• The first restaurants outside of the USA opened in Canada and Puerto
Rico.
1968
• The Big Mac was introduced.
• The 1,000th restaurant opened in Des Plaines, Illinois.
1970
• McDonald's restaurant in every US state.
• Ray Cesca (Director of Global Purchasing of the McDonald's Corporation)
has admitted that when McDonald's opened stores in Costa Rica in 1970,
they were using beef from cattle raised on ex-rainforest land, deforested
in the 1950's and 1960's.
• New countries - Virgin Islands, Costa Rica.
The first Japanese McDonald's in Tokyo.
1971
• The Egg McMuffin sandwich was test marketed in the US as McDonald's
first breakfast menu item.

McDonald's restaurant still in operation

Key people James A. Skinner (Chairman) & (CEO).

Revenue ▲ US$ 22.6 billion (FY 2008)

Operating income▲ US$ 6.51 billion (FY 2008)

Net income▲ US$ 4.31 billion (FY 2008)

Total assets ▲ US$ 29.2 billion (Q2 2009)

Total equity▲ US$ 13.2 billion (Q2 2009)

Employee s 400,000 (2008)

Introduction:
This wonderful phrase echoes around the world 50 millions times a
day, in 30,000 locations, in multitude of languages, in more than 120
countries around the globe.
And this simple thought sums up the reason McDonald's has
become the best known and most popular quick service restaurant around
the world, quite a tribute to Ray Kroc, who founded this company nearly
50 years ago with the simple vision expressed by his phrase 'Take good
care of those who work for you, and you will float to greatness on their
achievements'

We provide our customers with the quality of our great tasting food;
our fast, friendly service; our clean restaurants and facilities; the value of
our food and the McDonald's experience.

Working at McDonald's open up a world of opportunities for people.

At McDonald's a job is never just a job it's a wealth of experience and
skills, strongly accepted by the employees' world over.

We strongly suggest that before you apply for any position in

McDonald's Pakistan, you should seek maximum useful information. Not
only it will help you to choose the right career but also help you to get
through the hiring process successfully. We, at McDonald's Pakistan feel
proud to guide you and provide any information you may required.

McDonald’s Pakistan
McDonalds first opened a store in Pakistan in September 1998. Since then
they have opened seventeen new stores through Pakistan. Today millions
of Pakistanis place their trust in McDonald's everyday to provide them
with food of a very high standard as well as good service. In the past five
years, the response to McDonalds coming to Pakistan has been
overwhelming. Today Lakson Group Companies has taken over McDonalds
Corporation, USA and a local partner making it a 100% owned and
operated Pakistani company. McDonalds located in Pakistan are currently
employing about 1,000 Pakistanis and each store is managed by Pakistani
managers. They have also contributed in other ways than food service.
McDonalds has investment of over Rs 300 crore in the country and
payment of taxes and duties amounting to more than Rs 100 crore. Since
McDonalds is doing so well in Pakistan they will continue to grow and add
more stores in more cities in the future.

Islamabad:

A lush green park location in the beautiful F-9 Sector in Islamabad

has been designed and developed and is maintained by McDonald’s.
Covering an area of about 5 acres, the park was inaugurated in residents
of the capital city, who visit it regularly for jogging and sightseeing, while
kids have a great time on the swings.

Lahore:
McDonald’s has developed and maintain Defence Recreational Park in
DHA, Lahore, making it one of the city’s most popular and attractively
landscaped parks.

Karachi:
McDonald’s, along with Defence Housing Authority, has adopted the
park around Corniche, Seaview. Its maintenance and beautification is
done by McDonald’s as a social responsibility and community service. A
beautiful additional to the Clifton beach, it has become a recreational
facility and an option for people who don’t want to go out on the sand.

Ronald McDonald Field Programs

The world’s most popular character, Ronald McDonald, frequently
visits the paediatrics department of local hospitals to entertain sick
children and distribute gift among them. His visits to various schools and
orphanages are always eagerly awaited by children.

McSaviors Public Awareness Program

To make people realize that the world’s natural resources are fast
diminishing and something must be done about it, McDonald’s has
created a public awareness program called ‘McSaviors’.Launched as a
special initiative on the part of McDonald’s to protect the environment,
‘McSaviors’ involves children as they are going to be in charge of the
future.

‘McSaviors’ children are empowered to penalize adults found wasting

water and electricity. The minimum penalty amount is Rs. 10. McDonald’s
will use the penalty money to promote measures that will prevent further
wastage, such as replacing regular bulbs with energy savers, repairing
leaking water supply lines, etc. The program has been launched in
association with the express news.
GOALS AND OBJECTIVES
1. McDonald’s vision is to be the world’s best quick service restaurants
experience.

2. McDonalds is committed to maintaining and developing the best food

products in the quick service restaurant market.

3. In order to deliver this, the company has made a number of

commitments to food safety and nutrition.

4. Lead the Quick Service Restaurant market by a program of site

development and profitable restaurant openings, and by attracting new
customers. Increasing sales through promotions will enable them to
continue their program of expansion.
5. McDonalds have an objective to continual enhance and improve their
menu. This will better satisfy their customers and give customers more
reason to visit. Many ideas for new items on the menu come from the
franchisees responding to customer demand. Consumer tastes change
over time and McDonalds has to respond to these changes.

MISSION STATEMENT
"McDonald's vision is to be the world's best quick service restaurant
experience. Being the best means providing outstanding quality, service,
cleanliness, and value, so that we make every customer in every
restaurant smile."
CORE COMPETENCY AND SUSTAINABLE COMPETITIVE
ADVANTAGE
McDonald’s core competency is providing convenience when people need
and want to eat fast food at prices that are competitive and provide best
value for the customer’s money. One of McDonald’s competitive
advantages is its focus on consistency of quality, production of food and
use of raw materials all around the world. The world recognition
associated with the brand McDonald’s itself is also one of McDonald’s
competitive advantages.

Demand Trends:

There are many variations observed in the demand trends for McDonald’s
in Pakistan. The trend followed by the high income group is relatively
stable and they comprise a very small percentage. The changes in the
economy have very little effect on the demand trends of McDonald’s that
is being followed by this high income group.

Other reasons for these variations are:

McDonald’s is a brand that is mostly perceived by an average Pakistani

customer to be a place which is visited on some occasion or once in a
while. The main reason for this is the low disposable income that
people have because of the inflation and some other unemployment
reasons.

On the other hand McDonald’s lovers such as college students,

working individuals, kids and families fond of spending a lot on fast
food restaurants make it a place to be visited very frequently. One of
the reasons is high disposable income by blue collar individuals.
Another reason is the attraction for McDonald’s by kids as well as
those who love it for every reason.

There are also global issues which affect food demand for McDonald’s
e.g. bird flu and cow diseases in western countries brought down
demand for McDonald’s some years ago as it was a known fact that
 they get their meat from international suppliers in order to maintain
quality.

The demand also fell because of the security issues that affected
demand for McDonalds, e.g. suicide attacks on western establishments
a year ago.

One of the reasons for the decrease in the demand trend for
McDonald’s is the hostile attitude of the general public in Pakistan
towards all the Western restaurants and multinational companies.
Therefore the demand trends for McDonald’s have declined because of
the some of the ill activities that have been observed during past some
years regarding McDonald’s. Like many other nations people in
Pakistan are becoming quite health conscious. Fast food restaurants
are giving rise to problems related to heart and others such as obesity
and excessive cholesterol that are making people very conscious.
Therefore it has been observed that to avoid such problems people
have changed their eating patterns and are spending less on
restaurants such as McDonald’s.

KEY SUCCESS FACTORS

McDonald's Pakistan has an aggressive plan to expand in all other cities of

Pakistan and is rapidly growing with the focus to provide friendly and a
quick service restaurant experience to its customers.

McDonald’s FRANCHISES

All the franchises of McDonalds in Pakistan are owned by Lakson Group

of Companies. Apart from the fact that LGC is one of Pakistan’s biggest
corporations, their management allows not only standardization of quality
but a more uniform and effective marketing strategies in order to sustain
in the market. Therefore McDonald’s being its part had to continue to
strive to maintain its standards in the local region.

McDonald’s FRANCHISE COST

As a guide, the McDonalds franchise cost of
an average restaurant is £200,000. You will need to
provide at least 25% of the value as
unencumbered funds, the remaining 75% can be
funded through a bank loan with favourable funding terms.
There's also a one-off franchise fee of £30,000 and a training deposit of
£5,000 which will be refunded when you complete your training.

McDonald’s PLAY PLACE

Many McDonald's restaurants have included a playground for children and

advertising geared toward children, and some have been redesigned in a
more 'natural' style, with a particular emphasis on comfort: introducing
lounge areas and fireplaces, and eliminating hard plastic chairs and
tables. This has given a new outlook to the McDonald’s as a quick service
restaurant that is still not be seen on other fast food restaurants.

REMODELING OF LOCATIONS

An estimated 7,000 U.S restaurants will be rebuilt, relocated or refreshed

as part of the far reaching plan to upgrade its public persona with updated

restaurant designs intended to boost the bottom line.

McDonald’s COMPETITORS
1. McDonalds doesn’t offer just burgers. Their well diversified menu is
also one of the key success factors as most of McDonald’s
competitors are quite specialized: KFC in chicken, Pizza Hut in pizzas
etc.
2. When it comes to eating out during Ramadan in any fast food
restaurant, the name that clicks to the
customers is McDonald’s. The reason is
the affordable deals that they offer, that
seem to beat all others when it comes
to prices.

3. Another advantage that McDonald’s has

on its competitors is the location of its franchises. Its main
advantage is that it is located in vicinity that is easily approachable.
Secondly it has got in its surroundings other very attractive places
to be visited by people who want to enjoy their life to the full. These
places are a source of attraction not for the services they provide
but for McDonald’s as well. For example one of its outlets has been
opened in Park Towers in Karachi so as to attract the shoppers who
visit it very frequently. Another strategic location that McDonald’s
has acquired is at the Clifton beach. This has forced many others
nearby restaurants and one of the very famous cuisine restaurants
with the name of Kublai Khan to get closed. Same is the case in
Rawalpindi/Islamabad where McDonald’s holds an important
strategic location. The customers that are driven to the Cinepax are
automatically attracted towards McDonald’s.
 BCG Matrix (BOSTON CONSULTING GROUP ANALYSI

According to BCG Matrix McDonald’s is a star. The reason for this is its
high market growth and high market share in the Pakistani market. On the
other hand KFC and Pizza Hut are the cash cows because of their low
growth rate and high market share. During past some years KFC and Pizza
Hut have lost their market growth because of the fact that they lost their
standard war to their competitor i-e McDonald’s.

Another direct competitor of McDonald’s is Subway. According to BCG

Matrix it is a dog. Some of the reasons that are responsible for its low
market share and low market growth are the less expansion strategies
being followed by the company. Secondly they are not focusing at all on
all the major cities; rather they are only focused on the target segments of
Lahore and Karachi.

FINANCIAL REQUIREMENTS AND START-UP COSTS TO

OPEN A McDonald's

An initial down payment is required when you purchase a new restaurant

(40% of the total cost) or an existing restaurant (25% of the total cost).
The down payment must come from non-borrowed personal resources,
which include cash on hand; securities, bonds, and debentures; vested
profit sharing (net of taxes); and business or real estate equity, exclusive
of your personal residence.

Since the total cost varies from restaurant to restaurant, the minimum
amount for a down payment will vary. Generally, you need a minimum of
25,067,999.27 PKR of non-borrowed personal resources to be considered
to open a McDonald's franchise. Individuals with additional funds may be
better prepared for additional or multi-restaurant opportunities which
McDonald's encourages.

Other Requirements to Open a McDonald's

• Significant business experience - Individuals who have

demonstrated successful ownership or management of multiple
business units or have managed multiple departments.
• Rapid growth - Individuals who possess the capability to grow rapidly
with McDonald's.
• Business plan - The ability to develop and execute a business plan.
• Manage finances well - Ability to manage finances including a
thorough understanding of business financial statements.
• Good management skills - Commitment to personally manage the
day-to-day operations of the restaurant business.
• Training - Willingness to complete a comprehensive world class
training program and become proficient in all aspects of operating a
McDonald's restaurant business.
• Exceptional customer experience - The capability to effectively
manage an organization that recruits, trains, and motivates restaurant
employees who deliver an exceptional customer experience.
• Good credit history - An acceptable credit history

Ongoing Fees to McDonald's

During the term of the franchise, you pay McDonald’s the following fees:
• Service fee- A monthly fee based upon the restaurant’s sales
performance (currently a service fee of 4.0% of monthly sales).
• Rent - A monthly base rent or percentage rent that is a percentage of
monthly sales. McDonald's usually owns the property and also acts as
the landlord.
GOOD COMMUNICATION AND FRIENDLY ENVIORONMENT

McDonalds has always ensured a friendly environment to offer to its

customers. Children love going there, having a happy meal and the toys
that they get as a gift. Play places also serve as a significant attraction
where children can go and make friends and play. Employees are also
very polite and they are always ready to serve you in every best possible
way that they can.

PARTNERSHIP WITH COCA COLA

McDonalds and Coca Cola are official global partners. Coca cola is a big
brand name serving people all over the world with beverages.

PARTNERSHIP WITH TELECOM COMPANIES

McDonalds offered special deals to its clients with up size meals who are
the users of a particular company such as Warid and Ufone.

OBSTACLES

• Public purchasing power is less

• Security Concerns
• Religious Concern, that McDonalds are backed by Jews Zionist
• People make rumors that they are not providing Halal meat

CONCLUSION : McDonald’s is one of the best fast food

restaurant in the whole world. It provides a good quality and
hygienic food to its customers daily. If a person has enough
resources to meet the requirements of McDonald’s he must get
its franchise, it will be a financially rewarding and life-changing
experience.