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  • 1 Sep 2022

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  • 1 Sep 2022


McDonald's Business Model: Brings Profitable Growth with the Business


McDonald's Corporation is an American multinational fast-food corporation, which was founded by Richard McDonald and Maurice McDonald. It is not only associated with the food business but also marks its importance in having its presence in the real estate business as well, which balances the business at the time of recession.

Mission Statement

The mission statement says - To be our customers favorite place and way to eat and drink.

Vision Statement

The vision statement says - To move with velocity to drive profitable growth and become an even better McDonald's serving more customers delicious food each day around the world.

Founders

McDonalds, founders

McDonald's Corporation is a fast-food company, which was founded by Richard McDonald and Maurice McDonald, who were together known as the McDonald Brothers. They both served a limited menu, which included featured hamburgers, and potato chips - which were replaced by french fries, drinks, and pie. They mainly had their focus on providing quality services on time.

Ray Kroc wanted to come up with a restaurant system, which would serve the people with high-quality food. Coincidently, McDonalds brothers were in search of a franchising agent, which brought an opportunity for Ray Kroc. They hired Ray Kroc, and later run the business until they were bought out by Kroc in 1961. Ray Kroc later founded McDonald's System, Inc., a predecessor of the McDonalds Corporation, and after six years brought the exclusive rights to the McDonald's name and operating system.

Story of Real Estate Business

McDonalds brothers thought to come up with serving food more efficiently, so they opened a burger stand in San Bernardino, California. They worked with an assembly line method, in order to assemble their food faster and in bulk. When people saw a fruitful method of getting fast food in a few minutes with awesome taste, they got associated with it.

Ray Kroc was a milkshake machine salesman and had a will to start a food business. He went out to the original McDonald's restaurant for selling some Milkshake machines. After reaching there, he was amazed to see a big line of people standing outside. He too stood in the line and tried the burger, which was delicious.

He started convincing the brothers to join him with their company as a franchising agent. Ray Kroc insisted to take responsibility for the new locations and making a profit from these new locations, and the brothers would be receiving 1/2 of 1% of all the sales. Brothers accepted this and joined hands with Ray Kroc. This enabled the way for Ray Kroc to franchise the business locations and expanded it around the United States. But this business was not making much profit. At this time, Harry Sonneborn gave the idea to Ray Kroc that the real money was in the real estate. They started the subleasing operation, and the company used to charge an extra 20% to the people leasing the restaurant, which later went upto 40% bringing more prosperity to the company.

Later the restaurant owners used to pay their own insurance and taxes to the Mcdonald's Corporation, and they would charge more rent to locations. It was an entire monopoly that they made tons of money from it. McDonald's was making more money from this business. This Real Estate Company would buy the property, and then sell it to McDonald's, which continued for years.

The business makes its money from real estate in two ways. One is by buying and selling properties which are in demand, and the other is by collecting the rents of the properties which they already owned.

Logo

McDonalds, logo

Its logo began its journey in the year 1940. Stanley Clark Meston innovated a project and created the famous Golden arches, which were stylized images of the restaurant of McDonald.

In the year 1961, Ray Crock decided to rebrand, and in 2003 the arches were given a cylindrical shape, and again a small arrow was attached to the cylindrical shape, and a small shadow was again attached to the letter - M.

It is an excellent example of a distinctive design. It is the simple and distinctive one that attracts a wide range of customers towards its business.

Two golden arches that create a unique letter M helps in making its identity around the world. It has a significant role in creating its brand image. Its famous arches form the part of its design.

Its logo indicates the symbolism of the golden arches that were the substance of the newly-constructed architecture of the first franchised restaurant in 1952.

It highlights the Golden and Red as primary colors, which represent the famous arches of its first franchised restaurant, while the Red color represents the food industry. It uses the McLawsuit font in its name. It inspires the customers in a great way that everyone looks up to it as a symbol of excellence.

Products and Services

McDonalds, products, services

Beverages

McDonald's serves the people with its unique flavored beverages, which satisfy the thirst of the people and attracts their attention of the people towards it. These include -

Minute Maid Strawberry Watermelon Slushie, Minute Maid Tropical Mango Slushie, Coca-Cola, Sprite, Dr. Pepper, Hi-C Orange Lavaburst, 1% Low Fat Milk Jug, Honest Kids Appley Ever After Organic Juice Drink, Fanta Orange, Diet Coke, Sweet Tea, Unsweetened Iced Tea, Dasani Water, Minute Maid Premium Orange Juice, Reduced Sugar Low Fat Chocolate Milk Jug, Strawberry Banana Smoothie, Mango Pineapple Smoothie, Hot Chocolate, and Hot Tea.

Breakfast

The company also provides various varieties of breakfast to the audience to satisfy their hunger and fuel energy in their body. It includes - Bacon, Egg & Cheese Biscuit, Egg McMuffin, Sausage McMuffin, Sausage McMuffin with Egg, Sausage Biscuit, Sausage Biscuit with Egg, Bacon Egg & Cheese McGriddles, Sausage McGriddles, Sausage Egg & Cheese McGriddles, Big Breakfast, Big Breakfast with Hotcakes, Hotcakes, Hotcakes and Sausage, Sausage Burrito, Hash Browns, and Fruit & Maple Oatmeal.

Burgers

Burgers are the core product of the McDonald's business, which also offers Burgers with different varieties and tastes, which makes the mood of the people delightful. These include Big Mac, McDouble, Quarter Pounder with Cheese, Cheese Burger, Double Quarter Pounder with Cheese, Quarter Pounder with Cheese Deluxe, Quarter Pounder with Cheese Bacon, Double Cheese Burger, and Hamburger.

Chicken & Sandwiches

The company has also extended its business and offers chicken & Sandwiches, which are enriched with vitamins, iron, and proteins. It provides Spicy Deluxe Crispy Chicken Sandwich, McChicken, Deluxe Crispy Chicken Sandwich, Crispy Chicken Sandwich, Spicy Crispy Chicken Sandwich, Chicken McNuggets, and Filet-O-Fish.

Combo Meal

McDonald's has also brought Combo Meal for the people, which includes Big Mac Combo Meal, Cheeseburger Combo Meal, Quarter Pounder with Cheese Meal, Double Quarter Pounder with Cheese Meal, Bacon, Crispy Chicken Sandwich Combo Meal, 10 piece Chicken McNuggets Meal, Egg & Cheese Biscuit Meal, Bacon, Filet-O-Fish Meal, Egg McMuffin Meal, Sausage McGriddles Meal, Spicy Crispy Chicken Sandwich Combo Meal, Deluxe Crispy Chicken Sandwich Combo Meal, Sausage McMuffin with Egg Meal, Sausage Biscuit with Egg Meal, Egg & Cheese McGriddles Meal, Sausage, Egg & Cheese McGriddles Meal, and Sausage Burrito Meal.

Dessert and Shakes

To bring sweetness to the life of the people, Dessert and Shakes are provided by McDonalds which include - Chocolatey Pretzel McFlurry, McFlurry with OREO cookies, Hot Fudge Sundae, Chocolate Shake, Vanilla Shake, Vanilla Cone, Strawberry Shake, Hot Caramel Sundae, Baked Apple Pie, and Chocolate Chip Cookie.

Happy Meal

McDonalds brings happy meals for the audience by bringing Hamburger Happy meals, 4 Piece Chicken McNuggets Happy Meal, and 6 Piece Chicken McNuggets Happy Meal.

McCafe Drinks

The company is also associated with drinks such as - Caramel Macchiato, Iced Caramel Macchiato, Cappuccino, Caramel Cappuccino, French Vanilla Cappuccino, Mocha, Iced Mocha, Latte, Iced Latte, Caramel Latte, Iced Caramel Latte, French Vanilla Latte, Iced French Vanilla Latte, Americano, Hot Chocolate, Strawberry Banana Smoothie, Mango Pineapple Smoothie, and many more.

McCafe Bakery

It also serves the bakery products to the people, which are - Apple Fritter, Blueberry Muffin, and Cinnamon Roll.

Snacks & Sides

The company also marks its importance in bringing World Famous Fries, and Apple Slices to the people, which brings delicious taste and makes them delightful.

$1, $2, $3 Menu

The company also provides Sausage Biscuit, Sausage McMuffin, Sausage McGriddles, Hash Browns, Mocha, Caramel Mocha, Latte, Caramel Latte, French Vanilla Latte, Caramel Macchiato, Strawberry Banana Smoothie, Mango Pineapple Smoothie, McDouble, McChicken, Chicken McNuggets, World Famous Fries, Coca-Cola, Sprite, Fanta Orange, Unsweetened Iced Tea, and Sweet Tea, and many more.

Revenue Model

McDonalds, revenue model

The company has earned 14.87 Billion Dollars in the year 2001 and marked exceptional growth after five years. It earned 20.46 Billion Dollars in the year 2005. In the year 2010, the company again got prosperity with 24.07 Billion Dollars. The year 2015 and 2020 shows the revenue model around 25.41 Billion Dollars and 18.86 Billion Dollars respectively, whereas, in the year 2021, it again took fruitful efforts to escalate the profit margins and earned 22.87 Billion Dollars.

[The images are being taken from the registered companies and belong to their respective owners only.]