Valuation: $230 billion
Business model: restaurant/ franchising
Today nearly everyone once has visited this fast food chain. Their restaurants are located almost in each town all over the world. Moreover, many people got used to have a meal in McDonald’s on a daily basis. Though, this is for a reason: the company has developed an efficient marketing system and managed to conquer the niche. Let’s work out how the founders reached a worldwide glory.
Brothers Dic and Mac McDonalds opened their first small restaurant for motorists in the 1940-s. Initially, it brought a decent income — $200,000 per year. However, after a while the situation suddenly changed. In order to stay afloat, the brothers came up with a new concept of the restaurant business in California.
It was based on a fast service and low prices. They implemented a self-service system, redesigned the kitchen for the mass production. The menu was quite meagre: two types of burgers, milk, coffee, and French fries. Though, California went through a true revolution: for the first time people didn’t sit at the tables waiting for an order but served themselves.
Ray Kroc suggested expanding the business by means of franchise selling and opening a restaurant chain. This led to great success: the income exceeded $350,000 a year. Later, Kroc purchased McDonald’s for $2,7 million.
Besides a bunch of McDonald’s lovers, there are its opponents as well. In 2008, Paul McCartney urged people to boycott the company as they used the Beatles’ pictures in the restaurants to attract customers. Moreover, in 1994, an old American woman got a third-degree burn from McDonald’s coffee. The company had to pay $640,000 and added the warning about hot drinks.
Now more than 30,000 restaurants in 120 countries operate under McDonald’s brand. The menu includes both classic meals like a hamburger, French fries and typical ones for each country. For example, in Germany you can buy beer and in Hong Kong rice burgers are offered.
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