Mc Donald’s is the
No. 1 ranking food retailer. They almost make a monopoly of the fast food
industry. And more than 80% of the restaurants are franchised by
the local business people. Mc Donald's basic philosophy includes the good relation with the franchisees. Because the relationship with the franchisees is not good they can't improve quality, expand the market and increase the value. To open up a new Mc Donalds it can cost anywhere
from $511,000 to $ 1 million. The form of franchise McDonalds uses is a
business format franchising which is a relationship with the franchisor and the
franchisee. The franchisee must meet with all the requirements of the franchise
and the franchisor expects all the requirements to be fulfilled according to
the restaurant. Price is one of the most important
aspects in the retailing
mix. Mc Donalds is quick and affordable and that is what people want and
need. The lowest price settlement brings huge benefit to the business. Mc
Donlds’ sales rose dramatically by emphasizing on dollar menu options, such as
Mc Muffins and coffee. Also, location plays
key role on Mc Donalds way to success. As we know from Chapter 2, Mc donalds
key strategy plan is geographic advantage. The proper locations boost the
company as well. The fact that McDonalds offers a drive- thru option is great
for people who are on the go and are looking for quick meals. It makes it more
convenient for drivers and that’s what people are looking for, something that
involves low to no action on their part. Also, the practical location would be
any place where there are lots of students or workers. They want something
instant and on the way since we are usually all in a rush to get to their
destination. I
recently went to the McDonalds that is right by our school on chambers street.
Every single visiting, the store is all packed by the overwhelming people. I
believe the success is due to their location and the price. We have a college
and a high school right next to the location. Also, Tribeca is full of other
busy business men and women. Consumers want diversity and not your average
coffee and meals from a street stand. Also, the price of Mc Donalds is a big
plus, because Tribeca is very expensive area, it is really hard to find a place
to get a meal within 10 dollars. I am personally one of the big fans of Mc
Donald's because they have good, cheap, various food and fast service. They are
conveniently located in most areas, so it's really easy to find one. Most of
time, I choose Egg Mc Muffin and Mc coffee for my breakfast, which just cost me
3 dollars more or less and it is literally FAST food that can be served in 1
minutes.
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