RUNNINGHEAD: MCDONALDS OUTLET MANAGEMENT

McDonalds Outlet Management

McDonalds Outlet Management

Introduction

The company was founded May 15, 1940, in San Bernardino, California by brothers Dick and Mac McDonald. Since 1953, the company grants franchises. Two years later, April 15, Ray times: created a legal form for the franchise system: McDonald's Systems, Inc. In 1960 the company was renamed the McDonald's Corporation. They have been listed as a public company is listed on the New York Stock Exchange (NYSE) from 5 January 1966. In 2007, McDonald has had 31 thousand. McDonalds is operating its fast food chains in over 119 countries around the world. The company also owns other brands of catering: Aroma Café, Boston Market, Donatos Pizza and Pret a Manger. In 2007, revenues totaled 22.8 billion dollars and net profits $ 3.9 billion (Thomas, 1994, pp. 150-158).

Most of the bars, McDonald's serves for both guests involved tables, as well as car drivers (drive-in or drive-thru). Nevertheless, there are also several bars such McDrive, which accepts only orders from the drivers and there are no tables - usually at highway, gas stations, or shopping centers, but there are bars where you cannot purchase such a drive-in in central London. There are a number of bars "themes", such as Rock-and-Roll McDonald's. Some of the newer bars are also places of entertainment, called McDonald's Play lands or Play Places. The business model of McDonald's Corporation is slightly different from the model of other networks fast food. In addition to the normal fees franchise and the percentage of sales, McDonald's revenue is also rents, partly related to the sale in the United States; McDonald's is always the owner of the property on which there is a bar that is the subject of the franchise agreement. As stated by Harry J. Sonneborn , one of the founders of McDonald's: We are in the real estate business. The only reason we sell hamburgers, is that they have the greatest income payers of rent. In Europe, the model is different: for example in the UK, McDonald's owns only about 30% of outlets (Forrest, 2006, pp. 16-19).

For the purpose of completing the project I visited McDonalds outlet situated in Clapham Junction, 30/32 St Johns Road. During the visit the basic attempt was to see how organizational matters are being looked upon by the management of the Franchise. For that matter we are required to study the basic concept of franchising which will serve as the judgmental criteria regarding whether the franchise is working in accordance to the standards or not.

Concept of Franchising

Franchise is a contract between the seller and the buyer. The purchaser has the right to sell a product or service vendor. Franchise can be regarded as a continuous relationship between the franchisor, franchisee, and sellers - buyers. Franchisor provides the franchisee all knowledge, all methods of doing business for the consideration of interests. This cooperation is beneficial for both parties: the franchisor is growing rapidly at the expense of other people's money - the ...