McDonald's History, Size, Growth, Menu, Acquisitions, Franchise Problem, Renovation, Moderation, Competitors, Way forward, competition with Starbucks. Did with Milena Price and Alzahra Alrasheed at the University of San Francisco.

1. A story of expansion, moderation and international success
By Malvika (Overview), Milena (The Mistakes), Alzahra (Way forward)

3. McDonald’s & you
Value for Money?
Convenience?
Outlet Experience?
Healthy options?
Status?
Finally, do you go to it or not?

5. History
Kroc was selling milkshake machines to Maurice and Richard McDonald in San
Bernardino, CA, before taking the firm to 8,300 locations in 30 years.

6. Today
34,000 restaurants
In 118 countries
Serve 68 million
customers daily
Format: Stand-alone
+ Drive-throughs

8. Talking revenues…

9. McDonald’s Leadership
James Cantalupo
(CEO 2003-2004)Jack Greenburg
(CEO 1998- 2003)
Jim Skinner
(CEO 2004 -2012 )
It takes A McDonald's worker 4 months to earn what the makes in an hour: $9,247

10. A LOOK
AT THE
PROBLEMS

11. THE MENU

13. THE FRANCHISE PROBLEM

14. • Conflict between
corporate and
franchise owners
• Too many
restaurants 
cannibalization
• Franchising 2000
• American
Franchisee
Association
Current no. of McD outlets around you right now

15. THE TOO-MUCH-TO-HANDLE ACQUISITIONS

16. McDONALD’S SUFFERING PR
• Public
perception of
cleanliness, food
and service slips
• Increasing
health
awareness
• Europe: mad
cow disease
affecting
consumption

18. WAY
FORWARD

19. Focus on Existing Restaurants
- Tastier food.
- Renovation.
- Bearding
Starbucks with
upscale coffee
drinks.

20. Competition, domestic
1980: Pizza Hut, Taco Bell, Burger King
1991: “Extra Value Meals,” to keep up with Taco Bell’s value pricing
1995: PRICE PROBLEM
- Prices are no longer attracting customers
- Received low marks on food quality, value, service, and cleanliness.
Top honors instead went to Wendy’s
Late 1990’s: WORKERS PROBLEM
Low unemployment. Finding good help was hard while others were doing better.
2001:
- McDonald’s: 1% same-store sales growth
- Burger King & Wendy’s: 4% average

21. Competition, international
Germany:
- Burger king which expanded from 268 stores in 2000 to 390 in 2002.
- local retailers such as gas-station food marts and traditional mom-and-pop
bakeries.
UK:
- Service and cleanliness issues.
- consumer tastes.
Japan:
saturated market, local competitors became stronger
- Same-store sales fell 12.1% in 2002
- fell additional 4.4 percent in 2003

22. McCafe

23. SWOT
Strengths
- Market share
- Convenient
- Familiarity
- Price consistency
- Well known old brand
- Restrooms cleanliness
Weaknesses
- Franchisee relations
- Brand image
- Food quality
- Menu problems
- Low growth and quality
control
Opportunities
- Coffee drinks
- Change positioning.
- Quality improvement.
- Interiors renovation.
Threats
- Health awareness
- Criticism
- Competition
- Decreasing sales

24. FUTURE?