Mcdonalds - Essay Example

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More than 70% of McDonald’s restaurants are owned and operated by independent local people. At the end of 2006, the company had 31,046…
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Download file "Mcdonalds" to see previous pages... It is one of the most well known and reputed brand and holds a leading share in the globally branded quick service restaurant segment of the informal eating out in virtually every country where they have a presence. It has achieved this distinction through efficiency in its operations and proper functioning.
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Approximately 70% of McDonalds restaurants worldwide are owned and operated by independent local men and women (Wikipedia). McDonald’s offers flexible menus with different tastes and different sizes to fit every active lifestyle. It has a global presence with successful expansion into 120 countries and they serve nearly 54 million customers each day. By 2001, they had 30,093 restaurants all over the world with sales of $24 billion. They offer both counter service and drive through service. McDonald’s follows a different business model from other fast food chains. In addition to the franchisee fees, supplies and a percentage of sales, they also collect rents partially linked to sales.
Their international operations are very significant to them because a sizeable portion of revenue is generated through franchisees. While the US and Europe each account for 35% of the revenues, France, Germany and the UK collectively account for 60% of the total revenue (Orji, 2005). In Australia, China and Japan, they have 50% owned-affiliate account under the equity method which account for nearly 50% of the revenues. These six markets are the major markets for the company.
While fast food meals based in burgers and fried chicken have been considered convenient, they have also been considered to be unhealthy. One of the reasons for the vast number of allegation against McDonald’s is that processed convenience foods contribute to obesity (Schröder & McEachern, 2006). This has led to several litigation proceedings against McDonald’s. This demonstrates that they have not been socially conscious in their dealings.
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