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Mcdonald’s Fitness Center Report

2019 Report

Prepared by Alex Stezowski

College of DuPage Student

Report Distributed May 3rd, 2019

Prepared for James Okrasinski, English 1105-010

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ABSTRACT
With the increase of modern conveniences in the workplace such as computers
and the internet. Productivity has steadily increased, and with it, so has the potential to
increase profit and reach. However with many of these changes to business
environment come with changes in employee needs and expectations. In order to
maximize the potential that is possible in their employees, many companies have
implemented features to there corporate environment designed to improve the work
atmosphere. One such feature is an on-site employee fitness center for use during
office hours. The Information provided in this report details fitness centers in the
workplace though statistics on: benefits and risks to the company, health of employees,
productivity, liability, costs and design. With the information I have gathered from these
statistics, Mcdonald's Corporation can more accurately conclude the feasibility of adding
a new fitness center to their corporate headquarters in Chicago.
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TABLE OF CONTENTS

ABSTRACT……………………………………………………………………….…..2

TABLE OF CONTENTS……………………………………………………………..3

TRANSMITTAL……………………………………………………………………….4

EXECUTIVE SUMMARY…………………………………………………………....5

ANALYSIS OF WORKPLACE FITNESS CENTERS…………………………….6

INTRODUCTION…………………………………………………………………….6

ANALISIS………………………………………………………………………….....7

BENEFITS…………………………………………………………………….….......7

RISKS…………………………………………………………………………..….... 9

COSTS……………………………………………………………………………....10

CONCLUDING REMARKS AND RECOMMENDATIONS……………………..11

REFERENCE CITATIONS………………………………………………………..12
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TRANSMITTAL
______________________________________________
To: Mcdonalds Corporate Headquarters
From: Alex Stezowski
Sent: April 12th 2019
Subject: On-site Employee Fitness Center Proposal

Enclosed is the formal report document detailing the feasibility of constructing an

employee fitness center for the Mcdonald's Corporation. The Information provided in
this report, details fitness centers in the workplace though statistics on: benefits and
risks to the company, health of employees, productivity, liability, costs and design. With
the information I have gathered from these statistics, Mcdonald's Corporation can more
accurately conclude the feasibility of adding a new fitness center to their corporate
headquarters in Chicago.

My goal with this report is to provide Mcdonald's Corp. With sufficient information to
decide whether opening a new fitness center is in their best interest. Let me know if you
have any questions on this report or need additional information. You can reach me in
my office monday through friday, or at (312) 218 - 4382 and by my email
stezowskia@dupage.edu​.

Alex Stezowski
Alex Stezowski
College of DuPage Student
stezowskia@dupage.edu
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EXECUTIVE SUMMARY
This report examines the prospect of building an on-site fitness center for Mcdonald’s
Corporate headquarters in Chicago. The Information provided in this report, details
fitness centers in the workplace though statistics on: benefits and risks to the company,
health of employees, productivity, liability and costs. With the information I have
gathered from these statistics, Mcdonald's Corporation can more accurately conclude
the feasibility of adding a new fitness center to their corporate headquarters in Chicago.
The purpose of this report is to convince the Mcdonald’s corporation into building a
Fitness center at there Worldwide corporate headquarters because of the many benefits
that it brings to both the employees and the company. However, with any investment,
there are risks and rewards that have to be taken into account before the project is
approved. The report looks at generational preferences and the relevance of fitness in
today's society.

There are many benefits to be explore if Mcdonald’s decides to open a fitness center at
the corporate headquarters. For employees, they will experience greater job
satisfaction, better health and happiness, costs savings, and a more positive corporate
culture. By building a fitness center, employees will feel like there is a greater sense of
community at their work, which will hopefully lead to many positive benefits later down
the road. For employers, in addition to the benefits they will see from people being
healthier, they will also see in lower healthcare costs. When people exercise more
especially as they get older, this can prevent a lot of negative health effect that can
keep employees from performing at their peak. Studies have found that Health concerns
such as obesity and high blood pressure can be greatly reduces from just regular
exercise.

As far as costs and risks associated with a fitness center, we will need to staff the new
structure with employees as well as maintaining the equipment and fixing things when
they break down. A major concern of opening a new building is that many employees
who want a gym membership may have already gotten one and be in a contract with
them. I believe that this risk can be mitigated by creating incentives in order to get
people to switch over and by pricing our rates competitively.

Overall, the construction of a fitness center at Mcdonald's would be a great addition to

our business and would lead to a greater satisfaction in the workplace, Even with some
of the costs and risks associated with this new structure I still feel that our costs savings
ane employee satisfaction will make it worth the risks.
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ANALYSIS OF WORKPLACE FITNESS CENTER

INTRODUCTION
In recent years, we have seen a revolution in the way people work with the advent of
computers and the internet. What used to take hours can now be done in seconds with
just the click of a mouse. Not surprisingly, with this change in technology, we have also
seen a change in values not just in employees but in people in general. For example,
we have found Millennials and Generation Z to be more health conscious than previous
generations. In addition, many older generations have found it increasingly prudent to
maintain their health as they age and tasks require more effort to compete.

But how can this change in value

benefit Mcdonald’s? By building an
on-site fitness center, Mcdonald’s will
be able to engage better with their
employees leading to a more positive
corporate culture, and reduce costs
on healthcare. Figure 1 shows the
results of a survey were adults 23 to
65 years old were asked which health
and wellbeing programs they found
were valuable. Out of the choices the
highest ranking programs was On-site
health center with 73% of
respondents in agreement.

Evidence to suggest this change in

the way that older generations view health
was found in a study conducted by CIGNA
corp. Which found that after building an
on-site fitness center and encouraging older workers to use it. Workers over 50 who
exercise at least 2 times a week for 1 year experienced reduced weight, reduced
cholesterol and overall less healthcare expenses.

This will benefit Mcdonald’s because it shows that employees of multiple generations
will use and benefit from an on site fitness center, in addition, Mcdonald's will save on
healthcare costs for older workers who can exercise and reduce overall expenses for
the company. In addition to examining the benefits of building a fitness center. This
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report will also examine background and risks of building a new fitness center, as well
as the costs and design of its construction. Ultimately I have found that the risks and
costs are outweighed by the numerous advantages offered by building a fitness center
and the goal of this report is to show that your company should invest into its
construction.

How do we know if a fitness

center is the best investment for
employers and employees
alike? The reason that a fitness
center is a good investment for
employers is because it benefits
them with greater productivity
and performance from their
employees as well as reduced
healthcare costs, and overall
better health of their workers.
Figure 2 shows the results from
a survey were employers who
stated that there wellness
program had positive impacts
ask what the positive impact were.
Looking at the data collected from
employers. We see that in 2018, 79%
of employers said workers health improved, 77% said that productivity and performance
improved, and 71% said that healthcare costs improved. This chart shows that of the
employers who were happy with their wellness program, the majority reported
numerous benefits. In all 3 years surveyed, all 3 options had experience over 65% of
the reponses.

ANALISIS
BENEFITS
There are numerouse positive benefits to building an on-site fitness center. We have
explored earlier how a fitness center can benefit employers as well as employees in a
variety of different ways. In this section I will go more in depth into the positive impacts
that a fitness center will bring to a company and apply it directly to how a fitness center
will affect Mcdonald’s Corporation specifically.
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First off, how does building an on-site fitness center benefit the company? The answer
is more complex than you may think. Many facets play into benefits that a fitness center
may bring for a company. The main ones being: Productivity and Health of the workers,
Healthcare cost savings, opportunities for partnerships and reduction of on the job
injuries. If you compare Mcdonald’s to many of the other fast food companies available
you will find Mcdonald’s is the biggest Fast food company in the world by revenue, but
actually not by number of locations. According to information collected by by both
restaurants. That title actually goes to Subway, with a total of 42,431 locations. That’s
nearly double what they had in 2016. Compared to that of Mcdonald’s with ​37,855 
outlets as of 2018. This shows that revenue is not the only factor that contributes to the 
size of a business. In order for Mcdonalds to stay competitive,I belive mcdonalds has to 
invest in its workers.  
 
Figure 3 shows a graph of 
the Total 
employer/employee health 
care costs from 2009 to 
2018. From 2009 to 2008 
both employer and 
employee paid health care 
costs have increased with 
employer costs coming in 
significantly higher. This is 
a problem for Mcdonald’s 
because this is revenue 
that could be saved by 
investing into a wellness 
program such as fitness. 
In addition to that. 
Millennials as a 
generation, are now entering the 
workforce and replacing previous 
generations. As we explore earlier. 
Employees over the age of 50 can benefit greatly from an on-site fitness center. 
Millennials as a generation can also benefit greatly from a fitness center because of 
there changing preferences toward health and wellness as a generational cohort.  
 
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As one of the youngest generations that I have studied in this report, It came as a 
surprise to me to find out how important health programs were for them as a 
generation. But according to figure 4 below, The percentage of Millennial participation 
in fitness activities was 54%. That higher than both the Baby Boomers and the Gen Xers. 
if Mcdonald’s want to appeal more towards the future and maintain itself as the world 
leader in the fast food industry. It has 
to follow the trends set by younger 
generations who value a more health 
conscious lifestyle. 
 
Combining the results of this survey 
with the data collected in previous 
ones we see an opportunity for 
Mcdonald's to save healthcare costs 
become clear. According to this 
survey, The number one health 
program for Baby Boomer and in 
general is Biometric screenings. We 
can assume from the data that 
because baby boomers have higher 
blood pressure they need more 
frequent blood tests. In a previous 
survey we found that when adults 
over 50 exercise 2 times a week 
there blood pressure decreases. 
This results in the need for fewer 
blood tests and the opportunity to 
cut back the costs associated with 
employee healthcare. Therefore, by introducing a fitness center at Mcdonald’s 
corporate headquarter we can encourage Baby boomers to use it and reduce their 
healthcare costs in the process. 

Risks
With all the benefits that come with investing in this new program, there were bound to
be some risks. The building of a employee fitness center has some risk associated with
it that you should become aware of before you decide to make this an addition to your
corporate culture at Mcdonald’s. One of these risks is that employees will be slow to
adapt to the new resources or that equipment won't be fully utilized. This is a concern
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because we don't want to spend money on resources that don't bring any value to the
company, however I believe that this concern can be mitigated by surveying employees
already with the company to
determine how they exercise in
order to get the right equipment
for them to use. Another concern
is that because fitness is so
popular with younger generations,
many of the people who work for
the company will already have
gym memberships so a lot of
people will not be using the
resources. This concern is
supported by

figure 5 which shows that the

number of private, low cost gym
memberships has been steadily
increasing since 2011. This Risk
can be mitigated by insisting
employee to use it through
advertising and by offering
membership at a competitive price that can compete with outside companies

Costs
In this section, I will now go over some of the costs that are associated with opening an
on site fitness center. These costs are important to mention because it factors in into the
accounting and can affect the amount of profit that Mcdonald's corporation has. The
monetary cost of opening a fitness center can range anywhere from 15 to 100 thousand
dollars and is determined by the factors that I will list below. Some of the costs, include,
Building the structure, buying the equipment, maintaining the equipment, staffing the
department, managing the finances.All of these costs are important to running a
business and making this as successful as possible. I would recommend that
Mcdonald’s not spend top dollar building and maintaining a fitness center before we
have determined if people's interests is there. I fist recommend building a relatively
large building and buying only the essential gym equipment that was determined buy
our employee survey. That way we can save on the costs, as well as giving the fitness
center room to grow, if interest is raised over time.
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CONCLUSION AND RECOMMENDATION

Mcdonald’s will benefit greatly from the construction of an on site fitness center at its
corporate headquarters in chicago. It will allow our employees to maintain their health
and well being as well as helping the company to reduce its costs in the long run.
Employees of every generation will be able to benefit from a state of the art facility
constructed in our office. I have found in my research that Millennials already have a
strong interest in health and would be a lot happier if they are able to exercise in our
facilities. Generation X and the baby boomers will also benefit to reduce health
concerns and have an easier time completing their work. Employers will benefit from
building a fitness center by having greater satisfaction with employee productivity and a
lower costs of healthcare for the company. Along with these benefits associated with
better health there are a few risks and costs that I pointed out that should be mentioned.
For example, there may be challenges getting people to adapt to the new fitness center,
and many young people may already have gym memberships. I believe that this can be
solved by giving employees and incentive to joining our gym rather than the
competitors.

As stated before my goal with this report was to provide sufficient information about an
on-site fitness center for mcdonald's corporate headquarters. If given approval
construction would start immediately at the location we have pick out for the fitness
center to go. Also mention above we would recommend a larger facility be built and
staffed so that if the fitness center idea really takes off, we can expand to fit the building
and subsequently add fitness centers to the rest of our headquarters worldwide.
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REFERENCE CITATION

Mcdonald’s Logo (2019, May 3).​ Golden Arches,​ Land Securities Group 2019 Retrieved
​ ttps://thegalleria.co.uk/food-and-drink/mcdonalds
from The Galleria: h

Percentage of adults in the U.S. who stated the following wellbeing programs were
valuable or very valuable to them as of 2018*. In ​Statista - The Statistics Portal.​
Retrieved May 3, 2019, from
https://www.statista.com/statistics/859610/wellbeing-programs-value-for-us-adults/​.

McDonald, M. (1990, January). Valuing experience: how to keep older workers healthy.
Business & Health,​ ​8​(1), 35+. Retrieved from
http://link.galegroup.com/apps/doc/A8540335/AONE?u=cod_lrc&sid=AONE&xid=fd12d
513

TCHS. (n.d.). Percentage of employers in the U.S. who stated their company's wellness
program had positive impacts from 2015 to 2018. In ​Statista - The Statistics Portal​.
Retrieved May 3, 2019, from
https://www.statista.com/statistics/731721/impact-on-workers-from-company-offered-we
llness-programs-in-us/​.

Willis Towers Watson. (n.d.). Total employer/employee health care costs in the U.S. in
2009 and 2018. In ​Statista - The Statistics Portal.​ Retrieved May 3, 2019, from
https://www.statista.com/statistics/240695/total-health-care-costs-in-us-companies-in-th
e-us-devided-by-employer-and-employee/​.

Entrepreneur. (n.d.). Number of Subway stores worldwide from 2011 to 2018. In ​Statista
- The Statistics Portal.​ Retrieved May 3, 2019, from
https://www-statista-com.cod.idm.oclc.org/statistics/469379/number-of-subway-restaura
nts-worldwide/​.

McDonald's. (n.d.). Number of McDonald's restaurants worldwide from 2005 to 2018*. In

Statista - The Statistics Portal.​ Retrieved May 3, 2019, from
https://www-statista-com.cod.idm.oclc.org/statistics/219454/mcdonalds-restaurants-worl
dwide/​.
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"Percentage of U.S. Individuals Who Participated in Various Health Programs in The

past 12 Months as of 2016, by Generation*." ​Statista - The Statistics Portal,​ Statista,
www.statista.com/statistics/620549/participatory-health-programs-us/, Accessed 3 May
2019

Tutor2u, & Amazon, & The Gym Group. (n.d.). Number of private gym members in the
United Kingdom (UK) from 2011 to 2017, by type of gym (in millions). In Statista - The
Statistics Portal. Retrieved May 3, 2019, from
https://www-statista-com.cod.idm.oclc.org/statistics/730203/number-of-private-gym-me
mberships-uk/​.