Difference between revisions of "McDonalds" - New World Encyclopedia
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| + | '''McDonald's Corporation''' is the world's largest [[fast food|fast-food]] chain, primarily selling [[hamburger]]s, [[chicken (food)|chicken]], [[French fried potatoes|french fries]], [[breakfast]] products, [[milkshake]]s and [[soft drink]]s. Beginning in the 1940s as a family-owned restaurant in San Bernardino, California, McDonald's successfully expanded into a corporation under Ray Kroc and has now become a symbol of [[globalization]] and the spread of the [[American way|American way of life]]. | ||
| − | + | McDonald's established the "fast food" system of providing quick service and uniform quality to customers. Today, more than 50 million customers are served each day by the company. Traces of the double arches are seen worldwide in toys, billboards, commercials, as well as in advertising spots in highly publicized events such as the Super Bowl and the Olympics. Its prominence has made it a frequent subject of public debates about [[obesity]], [[Business ethics|corporate ethics]] and [[consumer]] [[Moral responsibility|responsibility]]. | |
== History == | == History == | ||
| − | + | McDonald's was opened in 1940 by brothers Dick and Mac McDonald in San Bernardino, [[California]]. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern [[Fast food|fast-food restaurant]]. The present corporation dates its founding to the opening of a [[franchising|franchised]] restaurant by [[Ray Kroc]], in [[Des Plaines, Illinois|Des Plaines]], [[Illinois]] on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion. McDonald's restaurants are now found in 120 countries and territories around the world and serve nearly 54 million customers each day. | |
| − | McDonald's was opened in 1940 by brothers Dick and Mac McDonald in San Bernardino, California. | ||
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== Restaurant Features == | == Restaurant Features == | ||
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Most McDonald's restaurants include counter service, extensive indoor and outdoor seating, and sometimes large indoor or outdoor playground facilities in suburban areas or certain cities. | Most McDonald's restaurants include counter service, extensive indoor and outdoor seating, and sometimes large indoor or outdoor playground facilities in suburban areas or certain cities. | ||
| − | Also, most McDonald's restaurants offer drive-through service, which provides an even more convenient means for customers to purchase food from their vehicle. The company first implemented the Drive-Thru in Arizona in 1975, following the lead of other fast-food chains. | + | Also, most McDonald's restaurants offer drive-through service, which provides an even more convenient means for customers to purchase food from their vehicle. The company first implemented the "Drive-Thru" in Arizona in 1975, following the lead of other fast-food chains. |
| − | In 2006, McDonald's made its first major redesign of its restaurants since the 1970s. | + | In 2006, McDonald's made its first major redesign of its restaurants since the 1970s. Changes include a modification of traditional colors, the restructuring of exterior and interior fixtures, and the addition of special features like lounging areas and music. |
==Advertising== | ==Advertising== | ||
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[[Image:Ronald McDonald.jpg|thumb|right|250px|[[Ronald McDonald]], McDonald's mascot.]] | [[Image:Ronald McDonald.jpg|thumb|right|250px|[[Ronald McDonald]], McDonald's mascot.]] | ||
| − | + | 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 various local events. However, television has always played the central role in the company's advertising strategy. | |
| − | 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 various local events. | ||
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===Business model=== | ===Business model=== | ||
| − | The McDonald's Corporation's [[business model]] is slightly different from that of most other fast-food chains. In addition to ordinary [[franchising|franchise]] fees, supplies, and percentages of sales, McDonald's also collects [[renting|rent]] partially linked to sales. As a condition of the franchise agreement, the Corporation owns the properties on which most McDonald's franchises are located. The UK business model is different, in that fewer than 30 | + | The McDonald's Corporation's [[business model]] is slightly different from that of most other fast-food chains. In addition to ordinary [[franchising|franchise]] fees, supplies, and percentages of sales, McDonald's also collects [[renting|rent]] partially linked to sales. As a condition of the franchise agreement, the Corporation owns the properties on which most McDonald's franchises are located. The UK business model is different, in that fewer than 30 percent of restaurants are franchised, with the majority under the ownership of the company. |
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| + | According to ''[[Fast Food Nation]]'' by [[Eric Schlosser]] (2001), nearly one of every eight workers in the [[United States|U.S.]] has at some time been employed by McDonald's. McDonald's is the largest private operator of playgrounds in the U.S., as well as the single largest purchaser of [[beef]], [[pork]], [[potato]]es, and [[apple]]s. The selection of meats McDonald's and drinks uses varies with the culture of the host country. | ||
==Global impact== | ==Global impact== | ||
[[Image:Mcdonalds World locations map.PNG|thumb|280px|right|Countries with McDonald's stores]] | [[Image:Mcdonalds World locations map.PNG|thumb|280px|right|Countries with McDonald's stores]] | ||
| + | McDonald's has become emblematic of [[globalization]], due to its enormous economic and cultural impact in all parts of the world. Its influence is sometimes referred to as the "[[McDonaldization]]" of society. For instance, ''[[The Economist]]'' magazine uses the "[[Big Mac Index]]," a list of McDonald's Big Mac prices in countries all over the world, that can be used to compare and informally judge those nations' [[currency|currencies]]' [[purchasing power parity]]. In addition, because McDonald's is closely identified with the [[United States]]’ culture and lifestyle, its international business expansion has been termed part of [[Americanization]] and American [[cultural imperialism]] as well. | ||
| − | + | Some observers have suggested that the company should be given credit for increasing the standard of service in markets that it enters. A group of anthropologists in a study entitled ''Golden Arches East'' (Stanford University Press, 1998, edited by James L. Watson) looked at the impact McDonald's had on [[East Asia]], and [[Hong Kong]] in particular. When it opened in Hong Kong in 1975, McDonald's was the first restaurant to consistently offer clean restrooms, driving customers to demand the same of other restaurants and institutions. In East Asia, McDonald's has become a symbol for the desire to embrace Western cultural norms. McDonald's has recently taken to partnering up with [[Sinopec]], China's second largest oil company, as it begins to take advantage of China's growing use of personal vehicles by opening numerous [[drive-thru]] restaurants. <ref>[http://www.canada.com/topics/finance/story.html?id=e4cdb03e-6e89-4df4-a38b-187283fdeab3&k=65519 McDonald's deal with oil company marries China's new love of fast food, cars].'' www.canada.com''. Retrieved October 19, 2007. </ref> | |
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| − | Some observers have suggested that the company should be given credit for increasing the standard of service in markets that it enters. A group of anthropologists in a study entitled ''Golden Arches East'' (Stanford University Press, 1998, edited by James L. Watson) looked at the impact McDonald's had on [[East Asia]], and [[Hong Kong]] in particular. When it opened in Hong Kong in 1975, McDonald's was the first restaurant to consistently offer clean restrooms, driving customers to demand the same of other restaurants and institutions. In East Asia | ||
In addition to its effect on business standards, McDonald's has been argued to have affected local customs. Watson's study suggests that by popularizing the idea of a quick restaurant meal, McDonald's has led the easing or elimination of various taboos, such as eating while walking in Japan. | In addition to its effect on business standards, McDonald's has been argued to have affected local customs. Watson's study suggests that by popularizing the idea of a quick restaurant meal, McDonald's has led the easing or elimination of various taboos, such as eating while walking in Japan. | ||
Revision as of 15:28, 19 October 2007
| McDonald's Corporation | |
| Type | Public (NYSE: MCD) |
|---|---|
| Founded | May 15, 1940 in San Bernardino, California |
| Founder | Dick and Mac McDonald |
| Headquarters | Oak Brook, Illinois, USA |
| Key people | Ray Kroc, corporate founder Jim Skinner, CEO Ralph Alvarez, president and COO Ronald McDonald, corporate spokesman |
| Industry | Restaurants |
| Products | Fast food, including hamburgers (and its signature Big Mac and Quarter Pounder sandwiches), Chicken McNuggets, french fries, milkshakes, salads, baked individual-sized pies, sundaes, children's meal ensembles (Happy Meals), and breakfast items (including its signature Egg McMuffin sandwich) |
| Revenue |  $20.460 Billion USD (2005)
|
| Net income | $2.602 Billion USD (2005)
|
| Employees | 447,000 (2005)[1]
|
| Slogan | i'm lovin' it |
| Website | www.mcdonalds.com
|
McDonald's Corporation is the world's largest fast-food chain, primarily selling hamburgers, chicken, french fries, breakfast products, milkshakes and soft drinks. Beginning in the 1940s as a family-owned restaurant in San Bernardino, California, McDonald's successfully expanded into a corporation under Ray Kroc and has now become a symbol of globalization and the spread of the American way of life.
McDonald's established the "fast food" system of providing quick service and uniform quality to customers. Today, more than 50 million customers are served each day by the company. Traces of the double arches are seen worldwide in toys, billboards, commercials, as well as in advertising spots in highly publicized events such as the Super Bowl and the Olympics. Its prominence has made it a frequent subject of public debates about obesity, corporate ethics and consumer responsibility.
History
McDonald's was opened in 1940 by brothers Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion. McDonald's restaurants are now found in 120 countries and territories around the world and serve nearly 54 million customers each day.
Restaurant Features
Most McDonald's restaurants include counter service, extensive indoor and outdoor seating, and sometimes large indoor or outdoor playground facilities in suburban areas or certain cities.
Also, most McDonald's restaurants offer drive-through service, which provides an even more convenient means for customers to purchase food from their vehicle. The company first implemented the "Drive-Thru" in Arizona in 1975, following the lead of other fast-food chains.
In 2006, McDonald's made its first major redesign of its restaurants since the 1970s. Changes include a modification of traditional colors, the restructuring of exterior and interior fixtures, and the addition of special features like lounging areas and music.
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 various local events. However, television has always played the central role in the company's advertising strategy.
Business model
The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees, supplies, and percentages of sales, McDonald's also collects rent partially linked to sales. As a condition of the franchise agreement, the Corporation owns the properties on which most McDonald's franchises are located. The UK business model is different, in that fewer than 30 percent of restaurants are franchised, with the majority under the ownership of the company.
According to Fast Food Nation by Eric Schlosser (2001), nearly one of every eight workers in the U.S. has at some time been employed by McDonald's. McDonald's is the largest private operator of playgrounds in the U.S., as well as the single largest purchaser of beef, pork, potatoes, and apples. The selection of meats McDonald's and drinks uses varies with the culture of the host country.
Global impact
McDonald's has become emblematic of globalization, due to its enormous economic and cultural impact in all parts of the world. Its influence is sometimes referred to as the "McDonaldization" of society. For instance, The Economist magazine uses the "Big Mac Index," a list of McDonald's Big Mac prices in countries all over the world, that can be used to compare and informally judge those nations' currencies' purchasing power parity. In addition, because McDonald's is closely identified with the United States’ culture and lifestyle, its international business expansion has been termed part of Americanization and American cultural imperialism as well.
Some observers have suggested that the company should be given credit for increasing the standard of service in markets that it enters. A group of anthropologists in a study entitled Golden Arches East (Stanford University Press, 1998, edited by James L. Watson) looked at the impact McDonald's had on East Asia, and Hong Kong in particular. When it opened in Hong Kong in 1975, McDonald's was the first restaurant to consistently offer clean restrooms, driving customers to demand the same of other restaurants and institutions. In East Asia, McDonald's has become a symbol for the desire to embrace Western cultural norms. McDonald's has recently taken to partnering up with Sinopec, China's second largest oil company, as it begins to take advantage of China's growing use of personal vehicles by opening numerous drive-thru restaurants. [2]
In addition to its effect on business standards, McDonald's has been argued to have affected local customs. Watson's study suggests that by popularizing the idea of a quick restaurant meal, McDonald's has led the easing or elimination of various taboos, such as eating while walking in Japan.
Criticism
McDonald's restaurants have been the targets of protests, peaceful and otherwise, by environmental, anti-globalization, and animal rights activists.
In 2001, Eric Schlosser's book Fast Food Nation included criticism of McDonald's' business practices. Among the critiques are allegations that McDonald's (along with other companies within the fast-food industry) uses its political influence to increase their own profits at the expense of people's health and the social conditions of its workers. The book also brings into question McDonald's advertisement techniques where it targets children.
In response to criticisms such as these, McDonald's has sought to include some healthy choices in its menu and has introduced a new slogan to its recruitment posters: "Not bad for a McJob". (The word McJob, first attested in the mid-1980s[3] 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 that its restaurant jobs have no prospects, noting that its CEO, Jim Skinner, started working at the company as a regular restaurant employee, and that 20 of its top 50 managers began work as regular crew members. [4] In Ireland the slogan is "would you like a career with that", in 2007 the company launched an advertising campaign on Irish television outlining that their jobs have many prospects.
In 2002, vegetarian groups, largely Hindu, successfully sued and won against McDonald's for misrepresenting their French fries as vegetarian.[5] Even after the discontinuation of frying the French fries in beef tallow in 1990, the French fries still had beef extract added to them, and today, along with McDonald's biscuits, contain beef and animal flavoring.
In 2004, Morgan Spurlock's documentary film Super Size Me produced negative publicity for McDonald's, with allegations that McDonald's food was contributing heavily to the epidemic of obesity in American society, and failing to provide nutritional information about its food for its customers. For 30 days Spurlock ate nothing but McDonald's (supersizing whenever asked). He ate everything on the menu at least once and continued to eat after he was full. At the same time he consciously attempted to get little or no exercise. By the end of the month he reported mood swings and sexual dysfunction and had gained 24.5 pounds (11.11 kg). Others have disputed Spurlock's claims.
Following the release of Super Size Me, some people reported they had experienced no weight gain and suffered no ill effect by eating only at McDonald's for a month, but choosing menu items more judiciously and exercising frequently.Minimize Me Merab Morgan, a North Carolina woman, was even able to lose weight.Woman loses 33lbs on McDonald's diet She claimed that the transparency of nutritional information made it easy to control her daily caloric intake.
Legal trials
The McLibel Case
The company's conflict with and approach to protests was epitomized in the early 1990s by what came to be known as the McLibel case. Two British activists, David Morris and Helen Steel, distributed leaflets entitled What's wrong with McDonald's? on the streets of London. McDonald's wrote to Steel and Morris demanding they desist and apologize, and, when they refused, sued them for libel.
Although the judge ruled in favor of McDonald's, he also accepted Steel and Morris's claims that McDonald's exploited children in its advertising, was anti-trade union, and indirectly exploited and caused suffering to animals. Steel and Morris were fined a reduced amount of £ 40,000 (originally £60,000) which they announced they had no intention of paying. McDonald's later confirmed it would not be pursuing the money. Steel and Morris then successfully challenged UK libel law and the European Court, arguing that it was an infringement of the right to free speech. The British government was forced to rewrite the legislation as a result.
Legal challenge over trans fats
In September 2002, McDonald’s announced it was voluntarily reducing the trans fat content of its cooking oil by February 2003. The oil was not changed. In the ensuing lawsuits, plaintiffs claimed that McDonald’s failed to inform the public that the oil was not changed. Since that time, it has been discovered that the trans fat content of some of their products are higher than they claimed (one McDonald's large fries contains 8 grams of trans fat).
Settlement of the lawsuit brought by BanTransFats.com and one private party requires McDonald’s to inform the public that the oil was not changed. In addition, McDonald’s will donate $7 million to the American Heart Association for public education about the risks of consuming trans fat. [2] and will spend up to $1.5 million on publishing notices to ensure that the public knows the status of its trans fat initiative. If the cost of publishing the notices is less than $1.5 million, the difference will be donated to the American Heart Association. The California Superior Court for Marin County has entered an order preliminarily approving this settlement.
Adjustments and Reforms
After the film Super Size Me was shown at the Sundance Film Festival, but before its cinematic release, McDonald's stated it was phasing out its Super Size meal option and would begin offering several healthier menu items, though no link to the film was cited in this decision. However, while the healthier menu items have appeared, the Super Size meal option still remains available at some locations. The company also began a practice of putting nutritional information for all menu items in light grey small print on the reverse of their tray liners. It is beginning to print nutritional labeling in clear black print on the actual packaging of its food items as well.
As part of a broader industry concession to the US Federal Trade Commission, on July 18, 2007, the company agreed to limiting its advertisements directed to the under-12 demographic to two Happy Meals "containing less than 600 calories, and derive no more than 35 percent of calories from fat, and have no more than 35 percent of the recommended daily sugar intake."[6]
In a bid to tap into growing consumer interest in the provenance of food, the fast-food chain recently switched its supply of both coffee beans and milk. UK chief executive Steve Easterbrook said: “British consumers are increasingly interested in the quality, sourcing and ethics of the food and drink they buy". McDonald's coffee is now brewed from beans taken from stocks that have been certified by the conservation group the Rainforest Alliance. Similarly, milk supplies used for its hot drinks and milkshakes have been switched to organic sources which could account for 5% of the UK's organic milk output[7].
In other cases, the firm has shown itself ready to adjust its business practices. When environmentally damaging packaging and waste produced by the company's restaurants became a public concern, McDonald's started a joint project with Friends of the Earth to eliminate the use of polystyrene containers, only in the United States, and to reduce the amount of waste produced.
Gallery
- Adelaide McDonalds.jpg
Adelaide, Australia
- McDonalds at Goodna Australia - McGoodna.jpg
Goodna, Queensland, Australia
- McDonalds. Valparaiso, Chile.jpg
Valparaiso , Chile
- McDonald's in Freiburg, Germany.jpg
Freiburg, Germany
- Project mcdonalds bol.jpg
Bolton, England
- Mcdonalds Dortmund.jpg
Dortmund, Germany
- McDonald's Bolzano Bozen.JPG
Bolzano, Italy
- McAmsterdam.JPG
- Architektura mcDonalds ubt.jpeg
Kristiansand, Norway
- Prc-mcdonalds.jpg
Tianjin, P.R.C.
- McDonalds in St Petersburg 2004.JPG
St. Petersburg, Russia
- ١٤٠٥٢٠٠٧٠٤٠.jpg
Riyadh, Saudi Arabia
- SGMcD.JPG
- DowneyMcdonalds.jpg
Oldest operating store, Downey, California, USA
- McDonald's Tampa 1979 05 02.JPG
Tampa, Florida, USA (with the old N-Billions Served sign)
- And such before McDonald's is a current sponsor Image:McD Bloomington MN.JPG
Retro-style store in Bloomington, Minnesota, USA
- Floating McDonalds.jpg
Floating store in St. Louis, Missouri, USA
- Santafemcdonaldscerrillosrd.jpg
Santa Fe, New Mexico, USA
- McMoab.JPG
Moab, Utah, USA
ReferencesISBN links support NWE through referral fees
- ↑ Hoover Fact Sheet
- ↑ McDonald's deal with oil company marries China's new love of fast food, cars. www.canada.com. Retrieved October 19, 2007.
- ↑ "Merriam-Webster: 'McJob' is here to stay". The Associated Press. November 11, 2003.
- ↑ McDonald's Debuts Advertising on the World of Opportunity Under the Golden Arches
- ↑ Letter from McDonald's headquarters claiming fries are vegetarian
- ↑ [1]
- ↑ http://www.fwi.co.uk/Articles/2007/07/03/104864/mcdonalds-milk-goes-organic.html
See also
Other hamburger QSR vendors:
- Burger King
- Hardee's
- Harvey's
- Hungry Jack's
- Jack in the Box
- Sonic Drive-In
- Steak n Shake
- Wendy's
- Wimpy
Criticism
- Fast Food Nation, book by Eric Schlosser
- Maxime, McDuff & McDo, documentary film about the unionizing of a McDonald's in Montreal, Quebec, Canada.
- McDonaldization, term used by sociologist George Ritzer to describe the process by which a society takes on the characteristics of a fast-food restaurant.
- McLibel case, a long-running UK libel case brought by McDonald's against two activists
- Super Size Me, film by Morgan Spurlock.
- McDonald's Video Game, a satirical game placing the player in the role of McDonald's management.
Miscellaneous
- Don Gorske, a McDonald's enthusiast, has consumed over 20,000 Big Mac hamburgers. He appeared on Super Size Me, is listed in the Guinness Book of World Records, and has a movie called MacDaddy.
- Worlds Biggest McDonald's Photo Collection All kinds of storefronts of McDonald's restaurants in the world.
- The first McDonald's made $366.12 on its first day open for business.[citation needed]
| McDonald's |
| People: Dick and Mac McDonald | Ray Kroc Ralph Alvarez | Fred L. Turner | George Cohon | Don Gorske | Michael R. Quinlan | Joan B. Kroc Foods: Menu items | Arch Deluxe | Big Mac | Big N' Tasty | Big Xtra | Chicken McNuggets | Chicken Selects | Egg McMuffin | Filet-O-Fish | French Fries | Happy Meal | Kiwiburger | Lean Beef Burger | McChicken | McDLT | McDonald's Fruit and Walnut Salad | McFlurry | McGriddles | McRib | Mighty Kids Meal | Quarter Pounder | Shamrock Shake | Snack Wrap | McPork | Special sauce Characters: Ronald McDonald | Mayor McCheese | Birdie the Early Bird | Hamburglar | Grimace | Captain Crook | Big Mac | Fry Guys/Fry Kids | Uncle O'Grimacey | Mac Tonight Places: Countries with McDonald's franchises | McDonaldland | The Hamburger Patch | McDonald's Museum | Ronald McDonald House | Hamburger University | Rock N Roll McDonald's Criticism: Fast Food Nation | Legal cases | McDonaldization | McJob | Super Size Me Other: History | TV campaigns and slogans | Two all beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun. | McDonald's Menu Song | i'm lovin' it | Golden Arches | The Wacky Adventures of Ronald McDonald | M.C. Kids video game | Global Gladiators | McDonald's Monopoly | Supersize | Urban legends |
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