McDonalds is probably the first thing that comes to minds of people when they hear the word ‘fast food,’ and though the company today is unrivaled in terms of global presence, its evolution from a single fast food restaurant to an industry giant was marked by strategic planning, the introduction of new methods, and consistent expansion. These crucial years are the subject of this article that aims at identifying the major breakthroughs that have defined McDonald’s journey to claiming its place among the world’s pop culture leaders. We will also look at how McDonald’s grew to an international brand and now operates in over one hundred countries in the world.
The Founding of McDonald’s
The history of the McDonald brothers and their fast food chain started in the year 1940 when they launched the first McDonald Restaurant at San Bernardino in California. Originally it was the classic car hop drive in restaurant which had a huge number of dishes on the menu. But in 1948, to alter the business infrastructure, the brothers came up with a new system called the “Speedee Service System” which was based on speed and efficiency. But to simplify the process, it shortened the list of products that should be made to only nine, which include hamburgers, cheeseburgers, soft drinks, milkshakes, and French fries. It was this strategic move that set the pace for the standard model of fast-food operations as we see today.
Ray Kroc’s Entry and Expansion
Ray Kroc’s joining McDonalds in 1954 can be recognised as the most important turning point of McDonalds history. Kroc initially became acquainted with the McDonald brothers through Multimixer milkshake machine sales ,where he was acquainted with their restaurant operations and was impressed with their efficiency. Thinking that he has hit a gold mine, Kroc convinced the brothers to grant him the exclusive authority to expand the business franchise-style across the country. Kroc bought McDonalds Brothers shop in 1955 for $1 million and opened the world’s first franchise restaurant in Des Plaines, Illinois in the same year to form McDonald’s Corporation.
Kroc saw his opportunity bringing consistent and standard Burger joints across the globe in which he wanted each respective location to provide a consistent quality service and product to the customers. The key components of McDonalds’ growth strategy were identified by his adherence to standardization, vendor control, and the use of franchising.
The Introduction of Iconic Menu Items
Several key menu items introduced under Kroc’s leadership played a crucial role in McDonald’s success:
Big Mac (1967): This burger was introduced into McDonald’s by franchisee Jim Delligatti and it greatly contributed to the company’s popularity. Many people attribute it to a generous serving of two beef patties, special sauce, lettuce, cheese, pickles, and onions that were sandwiched between a sesame seed bun.
Filet-O-Fish (1962): To introduce the Filet-O-Fish McDonalds saw the need to offer an option that its customers who perhaps wanted seafood, and based on this McDonalds showed its flexibility and innovation.
Quarter Pounder (1971): Being able to have more filling compared to the other burgers in the lineup, the Quarter Pounder met the needs of clients with heartier appetites and elevated McDonald’s promise of being able to deliver hearty meals.
Happy Meal (1979): The Happy Meal aimed at children, and came along with a main item and side dish coming with a drink and a toy; thus it was one of the primary reasons why McDonald’s had gained a friendly family image.
Global Expansion
How McDonald’s expanded globally is a testament to the brand’s adaptability and strategic vision. The first international McDonald’s opened in Richmond, British Columbia, Canada, in 1967. This move marked the beginning of McDonald’s global journey. The company’s approach to international expansion involved adapting its menu and business practices to cater to local tastes and preferences.
Canada and Puerto Rico (1967): After the start back in Canada, McDonald’s proceeded to expand its business and open its first restaurant in Puerto Rico that very same year.
Europe (1971): May or may not contain information from the case – McDonald’s initially opened two restaurants in the Netherlands and Germany. Considering McDonanld’s history, the expansion into Europe proved vital in the company’s transformation into an international fast food giant.
Asia (1971-1980s): The first McDonald’s restaurant in Asia was launched in Japan in the year 1971 with a very speedy entry into other Asian countries such as Hong Kong, Manila and Singapore. Current local adaptations such as the Teriyaki Burger served in Japan again reflected McDonalds’ eagerness to address local preferences.
Latin America (1980s): An evaluation of the McDonald fast foods reveals that the company started operating in Latin America with a restaurant in Brazil. To expand in this region, the brand was helped by localization of the products with regard to taste and cultural standards.
Middle East and Africa (1990s): Sustaining the expansion in various locations, McDonalds started opening franchises in the Middle East and Africa. These other regions were also seen as key areas where the company went out of its way to pay special attention to culture and religion, for instance halal food.
Technological Innovations
McDonald’s has consistently embraced technological advancements to enhance the customer experience and streamline operations:
Drive-Thru Service (1975): The additional opportunity of drive-thru service proved to be significant in enhancing the experience for consumers in the fast-food industry. Currently, fast-food sales specifically drive-thru dominate McDonalds business operations on a daily basis.
Point of Sale (POS) Systems (1980s): Combating the difficulty, McDonald’s implemented the new point of sale (POS) technology aimed at increasing order accuracy and enhancing throughput. These systems also gave important information that is useful for a variety of operations, including inventory control and sales forecasting.
Self-Service Kiosks (2010s): This led to the creation of self-service ordering of certain meals in McDonald’s as an attempt to satisfy the consumers’ demand for faster service.
Mobile Ordering and Delivery (2010s): Covid -19 forced the fast-food giant to shift to mobile order and delivery service which offered its customers more flexibility.
Commitment to Sustainability
As a global leader in the fast-food industry, McDonald’s recognizes its responsibility to address environmental and social challenges. The company has made significant commitments to sustainability and corporate responsibility:
Sustainable Sourcing: Ideally, McDonald’s has developed various sustainable sourcing policies such as sourcing of beef, coffee, and palm oil. The company needs to involve suppliers in the company to maintain good ethical standards and minimize the effects on the environment in the process.
Reducing Waste: There have been efforts to reduce waste where possible such as shipment packages being made from recycled materials and removal of single use plastics like shipment straws to many markets.
Energy Efficiency: McDonalds has made tremendous efforts in ensuring that it actively fights the menace of increased carbon emissions through use of energy conservation measures at its restaurants as well as seeking for renewable energy.
Community Engagement: Currently, McDonald’s Corporation supports the families with the seriously ill children through the ‘‘Ronald McDonald House Charities’’, which offers the families with homes and basic needs as they attend on their sick children in hospitals.
Conclusion
It is a story of being a small beginnings of a drive through restaurant to a giant brand McDonalds across the world with all its delicious burgers. Analysis of McDonald’s marketing milestones reveals the following; Product and service innovations include Menu launches, Global expansions, Technological advancements and Sustainability strategies all have propagated McDonalds into what it is today.
This paper aims at describing how McDonalds grew to be one of the leading fast food restaurants in the world providing insight in the strategies of international marketing growth. What is important to remember is that despite the growing complexity of the environment that surrounds McDonald’s and the constant need to innovate and adapt, the values with which both the first McDonald brothers and the creators of the first franchised stores started their business remain the main key to success both today and tomorrow.
FAQS
What were the key milestones in McDonald’s history?
The rather important moments in McDonald’s history include the opening of the first restaurant, Ray Kroc’s participation and growth, the creation of well-known meals such as the Big Mac or Happy Meal, and McDonald’s going global.
How did McDonald’s expand internationally?
Describing McDonald’s foreign penetration, the company took its first outlet in Canada in 1967 and proceeded to open other outlets across Europe, Asia, Latin America and the Middle East. This social environment also hindered the numerous changes it made to its menu and relations with the locals.
What technological innovations has McDonald’s adopted?
Currently, the following are some of the most significant technological innovations that have been introduced at McDonalds: drive-through technology, sophisticated Point of Sale systems, self-service touches, mobile ordering and delivery services.
What sustainability initiatives has McDonald’s implemented?
Sustainability ideas used by McDonalds’ are procurement responsibility; minimized wastage; efficiency in use of energy; and charitable activities such as the Ronald McDonald House Charities.
What impact did Ray Kroc have on McDonald’s success?
Ray Kroc can be considered to be one of the most significant contributors to McDonald’s success as he was the one who suggested the idea of using franchises, thereby promoting uniformity and controlling the quality of food served, and also encouraged the company’s quick expansion across the United States and other countries.