McDonald's
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McDonald's Corporation (Modèle:Nyse) is the world's largest chain of fast food restaurants, primarily selling hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, milkshakes and desserts. More recently, it also offers salads, fruit, snack wraps, and carrot sticks. The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion.
With the successful expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life. Its prominence has also made it a frequent topic of public debates about obesity, corporate ethics and consumer responsibility.
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Corporate overview
Facts and figures
McDonald's restaurants are found in 120 countries and territories around the world and serve nearly 54 million customers each day. The company also operates other restaurant brands, such as Piles Café and Boston Market, and has a minority stake in Pret a Manger. The company owned a majority stake in Chipotle Mexican Grill until completing its divestment in October 2006. Until December 2003, it also owned Donatos Pizza. It also has a subsidiary, Redbox, which started in 2003 as 18-foot (5.5 m) wide automated convenience stores, but as of 2005, has focused on DVD rental machines.
Types of restaurants
Most standalone McDonald's restaurants offer both counter service and drive-through service, with indoor and sometimes outdoor seating. Drive-Thru, Auto-Mac, Pay and Drive, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the latter two steps are frequently combined; it was first introduced in Arizona in 1975, following the lead of other fast-food chains. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service. There are also a few locations, located mostly in downtown districts, that offer Walk-Thru service in place of Drive-Thru.
Specially themed restaurants also exist, such as the "Solid Gold McDonald's," a 1950s rock-and-roll themed restaurant. In Victoria, British Columbia, there is also a McDonald's with a 24 carat (100%) gold chandelier and similar light fixtures.
To accommodate the current trend for high quality coffee and the popularity coffeeshops in general, McDonald's introduced McCafés. The McCafé concept is a café-style accompaniment to McDonald's restaurants. McCafé is a concept of McDonald's Australia, starting with Melbourne in 1993. Today, most McDonald's in Australia have McCafés located within the existing McDonald's restaurant. In Tasmania there are McCafés in every store.
As of the end of 2003 there were over 600 McCafés worldwide.
Some locations are connected to BP gas stations/convenience stores<ref>McDonald's and BP test combined operations. (McDonald's Restaurants; BP Oil Co.)</ref>, while others called McDonald's Express have limited seating and/or menu or may be located in a shopping mall. Other McDonald's are located in Wal-Mart stores. McStop is a location targeted at truckers and travelers which may have services found at truck stops<ref>MCDONALD'S SERVES UP 'MCSTOP' -- ITS RESTAURANT FOR BIG CROWDS</ref>
Children's areas
Some McDonald's in suburban areas and certain cities feature large indoor or outdoor playgrounds, called "McDonald's PlayPlace" (if indoors) or "Playland" (outdoors)[citation needed]. The first PlayPlace with the familiar crawl-tube design with ball pits and slides was introduced in 1987 in the USA, with many more being constructed soon after. Some PlayPlace playgrounds have been renovated into "R Gym" areas.
"R Gyms" are in-restaurant play area that features interactive game zones designed for children aged 4 to 12. Equipped with stationary bicycles attached to video games, dance pads, basketball hoops, monkey bars, an obstacle course, and other games which emphasize physical activity.<ref>McDonald's(R) Unveils R Gym(TM): The New and Fun Way for Kids to Play</ref>
The "R Gym" features the Toddler Zone, an active play environment with age appropriate games that develop physical coordination and social skills; the Active Zone, designed for children aged four-to-eight that promotes physical fitness through fun play; the Sports Zone which features a series of sport oriented activities to promote aerobic exercise for children aged 9-to-12; the Parent Zone which features seating and provides a monitoring area for their children; and the Dining Area which allows families to eat.
Redesign
In 2006, McDonald's introduced its "Forever Young" brand by redesigning all of their restaurants, the first major redesign since the 1970s.<ref>McDonald's wants a digital-age makeover</ref><ref>Mickey D's McMakeover</ref>
The new design will include the traditional McDonald's yellow and red colors, but the red will be muted to terra cotta, the yellow will turn golden for a more "sunny" look, and olive and sage green will be added. To warm up their look, the restaurants will have less plastic and more brick and wood, with modern hanging lights to produce a softer glow. Contemporary art or framed photographs will hang on the walls.
The exterior will have golden awnings and a "swish brow" instead of the traditional double-slanted mansard roof.
The new restaurants will feature areas:
- The "linger" zone will offer armchairs, sofas, and Wi-Fi connections.
- The "grab and go" zone will feature tall counters with bar stools for customers who eat alone; Plasma TVs will offer them news and weather reports.
- The "flexible" zone will be targeted toward families and will have booths featuring fabric cushions with colorful patterns and flexible seating.
Different music will be targeted to each zone.
Business model
The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees, supplies, and percentage of sales, McDonald's also collects rent, partially linked to sales. As a condition of the franchise agreement, the Corporation owns the properties on which most McDonald's franchises are located. The UK business model is different, in that fewer than 30% of restaurants are franchised, with the majority under the ownership of the company. McDonald's trains its franchisees and others at Hamburger University in Oak Brook, Illinois.
According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight workers in the U.S. have at some time been employed by McDonald's. (According to a news piece on Fox News this figure is one in ten). The book also states that McDonald's is the largest private operator of playgrounds in the U.S., as well as the single largest purchaser of beef, pork, potatoes, and apples. The selection of meats McDonald's uses varies with the culture of the host country.
Global impact
The brand is known informally as "Mickey D's" (in the US and Canada), "Macky D's" (in the UK), "McDo" (in France, Quebec, the Philippines, and the Kansai region of Japan), "Maccer's" (in Ireland), "Macarrannis" (in Mexico), "Maccas" (in New Zealand and Australia), "Mackedonkan" or just "Donkan" (in Sweden) or "de Mac" (in the Netherlands).
Thomas Friedman once said that no country with a McDonald's had gone to war with another.<ref>"The Lexus and the Olive Tree". thomaslfriedman.com. Accessed June 4 2007.</ref> However, the "Golden Arches Theory of Conflict Prevention" is not strictly true. Careful historians point to the 1989 United States invasion of Panama, when NATO bombed Serbia in 1999, and the 2006 Lebanon War as exceptions.
Some observers have suggested that the company should be given credit for increasing the standard of service in markets that it enters. A group of anthropologists in a study entitled Golden Arches East (Stanford University Press, 1998, edited by James L. Watson) looked at the impact McDonald's had on East Asia, and Hong Kong in particular. When it opened in Hong Kong in 1975, McDonald's was the first restaurant to consistently offer clean restrooms, driving customers to demand the same of other restaurants and institutions. In East Asia in particular, McDonald's have become a symbol for the desire to embrace Western cultural norms. McDonald's have recently taken to partnering up with Sinopec, China's second largest oil company, in the People's Republic of China, as it begins to take advantage of China's growing use of personal vehicles by opening numerous drive-thru restaurants. <ref>McDonald's deal with oil company marries China's new love of fast food, cars</ref>
In addition to its effect on business standards, McDonald's has also been instrumental in changing local customs. By popularizing the idea of a quick restaurant meal, Watson's study suggests, McDonald's led to the easing or elimination of various taboos, such as eating while walking in Japan.Modèle:Dubious
Criticism
Since the mid-1990s[citation needed] protest has often taken the form of an anti-globalization movement as documented in Naomi Klein's manifesto No Logo. McDonald's restaurants have been the targets of protests, peaceful and otherwise, by environmental, anti-globalization and animal rights activists. The company has used litigation in an effort to protect its business interests.
For example, in 1990, two British activists, David Morris and Helen Steel, distributed leaflets entitled What's wrong with McDonald's? on the streets of London. McDonald's wrote to Steel and Morris demanding they desist and apologize, and, when they refused, sued them for libel.
The trial lasted more than two years. The company's advertising techniques and business practices were scrutinized in the High Court of Justice in London and reported extensively in the press, who saw the case as a David and Goliath battle (under UK law, legal aid could not be granted for a defamation suit, so Steel and Morris did most of their own legal casework while McDonald's was represented by an extensive legal team).
In June 1997, the judge ruled in favor of McDonald's, awarding the company £60,000 damages, which was later reduced to £40,000 by the Court of Appeal. The amount was low because the judge ruled that some of the claims made by Morris and Steel had been proven, including that McDonald's exploited children in its advertising, was anti-trade union and indirectly exploited and caused suffering to animals. Steel and Morris announced they had no intention of ever paying, and the company later confirmed it would not be pursuing the money.
Steel and Morris later successfully challenged UK libel law in the European Court, arguing that it was an infringement of the right to free speech. The British Government was forced to re-write the legislation as a result. In 2005, a film by Ken Loach was made about the court case.
In 2001, Eric Schlosser's book Fast Food Nation included criticism of McDonald's' business practices. Among the critiques are allegations that McDonald's (along with other companies within the fast-food industry) uses its political influence to increase their own profits at the expense of people's health and the social conditions of its workers. The book also brings into question McDonald's advertisement techniques where it targets children. While the book does mention other fast-food chains, it focuses primarily on McDonald's.
In 2002, vegetarian groups, largely Hindu, successfully sued McDonald's for misrepresenting their French fries as vegetarian.<ref>Letter from McDonald's headquarters claiming fries are vegetarian</ref> Even after the discontinuation of frying the French fries in beef tallow in 1990, the French fries still had beef extract added to them. The French fries sold in the U.S. still contain beef and animal flavoring. McDonald's biscuits also contain beef flavoring along with animal flavoring.
Also in 2004, Morgan Spurlock's documentary film Super Size Me said that McDonald's food was contributing to the epidemic of obesity in society, and failing to provide nutritional information about its food for its customers. For 30 days Spurlock ate nothing but McDonald's (supersizing whenever asked). He ate everything on the menu at least once and continued to eat after he was full. At the same time he consciously attempted to get little or no exercise. By the end of the month he had gained 24.5 pounds (11.11 kg), was moody and had less interest in sex. Others have disputed Spurlock's claims (see below).
After the film was shown at the Sundance Film Festival, but before its cinematic release, McDonald's stated it was phasing out its Supersize meal option and would begin offering several healthier menu items, though no link to the film was cited in this decision. However, while the healthier menu items have appeared, the Supersize meal option still remains available at some locations. The company also began a practice of putting nutritional information for all menu items in light grey small print on the reverse of their tray liners. It is currently phasing in nutritional labeling in clear black print on the actual packaging of its food items.
Anthony Bourdain on his show, No Reservations, has criticised McDonald's among other fast-food restaurants for its culinary blandness.
Legal challenge over trans fats
In September 2002, McDonald’s announced it was voluntarily reducing the trans fat content of its cooking oil by February 2003. Because of operational problems, the oil was not changed on time. In the ensuing lawsuits, plaintiffs claimed that McDonald’s didn't do enough to inform the public that the oil was not changed.
The bantransfat.com website contains testimonials from people, one claims she thought the oil was low in trans fat, and she said, "that is why I have been eating there every week..."
In a settlement agreement, bantransfat.com said "While there is a difference of opinion regarding whether McDonald’s gave effective notice to its customers that the oil was not changed, McDonald’s deserves recognition and credit for having achieved a reduction in the trans fat levels ... and for working diligently over the last two years to test additional cooking oils." Nevertheless, bantransfat.com demanded monetary damages.
Settlement of the lawsuit brought by BanTransFats.com and one private party requires McDonald’s spend up to $1.5 million to publish notices on the status of its trans fat initiative. McDonald’s will also donate $7 million to the American Heart Association for public education about trans fat. [1]. The settlement also requires some money be paid directly to bantransfat.com.
The California Superior Court for Marin County has entered an order preliminarily approving the settlement.
Arguments in defense of McDonald's
Supporters of McDonald's point out that the company is successful because it meets the needs of customers and adapts to its customers wants.
In response to public pressure, McDonald's has sought to include more healthy choices in its menu and has introduced a new slogan to its recruitment posters: "Not bad for a McJob". (The word McJob, first attested in the mid-1980s<ref>"Merriam-Webster: 'McJob' is here to stay". The Associated Press. November 11 2003.</ref> and later popularized by Canadian novelist Douglas Coupland in his book Generation X, has become a buzz word for low-paid, unskilled work with few prospects or benefits and little security.) McDonald's disputes the idea that its restaurant jobs have no prospects, noting that its CEO, Jim Skinner, started working at the company as a regular restaurant employee, and that 20 of its top 50 managers began work as regular crew members. <ref>McDonald's Debuts Advertising on the World of Opportunity Under the Golden Arches</ref> In 2007, the company launched an advertising campaign with the slogan "Would you like a career with that?" on Irish television, outlining that their jobs have many prospects.
In a bid to tap into growing consumer interest in the provenance of food, the fast-food chain recently switched its supply of both coffee beans and milk. UK chief executive Steve Easterbrook said: “British consumers are increasingly interested in the quality, sourcing and ethics of the food and drink they buy". McDonald's coffee is now brewed from beans taken from stocks that have been certified by the conservation group the Rainforest Alliance. Similarly, milk supplies used for its hot drinks and milkshakes have been switched to organic sources which could account for 5% of the UK's organic milk output<ref>http://www.fwi.co.uk/Articles/2007/07/03/104864/mcdonalds-milk-goes-organic.html</ref>.
In other cases, the firm has shown itself ready to adjust its business practices. When the public became concerned that product packaging was environmentally damaging, McDonald's started a joint project with Friends of the Earth to eliminate the use of polystyrene containers, in the United States, to reduce the amount of waste produced.
Throughout the McLibel trial, senior representatives of the firm said they were merely trying to protect its image from undue and unfounded attack. With regard to its numerous and often controversial copyright and trademark actions, McDonald's lawyers say they are simply protecting the company's intellectual property. Super Size Me has been characterized as a non-scientific publicity stunt. The subject of the film consumes massive quantities of McDonald's food, to the point of being sickened by it. Eating on an hourly schedule and, as part of his rules, eating additional quantities each time a McDonald's worker says the word "supersize," the subject gains weight.
Following the release of the film Super Size Me, some people reported they had experienced no weight gain and suffered no ill effect by eating only at McDonald's for a month, but choosing menu items more judiciously and exercising frequently.<ref>Minimize Me</ref> Merab Morgan, a North Carolina woman, was even able to lose weight.<ref>Woman loses Modèle:Auto lb on McDonald's diet</ref> She claimed that the transparency of nutritional information made it easy to control her daily caloric intake.
Legal cases
McDonald's has been involved in a number of lawsuits and other legal cases, most of which involved trademark disputes. The company has threatened many food businesses with legal action unless they drop the Mc or Mac from their trading name. In one noteworthy case, McDonald's sued a Scottish café owner called McDonald, even though the business in question dated back over a century (Sheriff Court [Glasgow and Strathkelvin], 21 November 1952).
It has also filed numerous defamation suits. The McLibel case is probably the best known of these. McDonald's sued two Greenpeace activists for distributing pamphlets attacking its environmental, labor and health records. After the longest trial in UK legal history, McDonald's won a technical victory for showing that some allegations were untrue. But it was a massive public relations disaster since the judge also found that more than half of what was on the pamphlet was truthful.
McDonald's has defended itself in several cases involving workers' rights. In 2001 the company was fined £12,400 by British magistrates for illegally employing and over-working child labor in one of its London restaurants. This is thought to be one of the largest fines imposed on a company for breaking laws relating to child working conditions (R v [2002] EWCA Crim 1094). In April 2007 in Perth, Western Australia, McDonald's pleaded guilty to five charges relating to the employment of children under 15 in one of its outlets and was fined AU$8,000<ref>"
McDonald's fined for employing underage workers " , ABC News Online , 2007-04-12 . Retrieved on 2007-04-12 . </ref>.
Possibly the most infamous legal case involving McDonald's was the 1994 decision in The McDonald's Coffee Case.
Products
McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, french fries, soft drinks, breakfasts, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. This local deviation from the standard menu is a characteristic for which the chain is particularly known, and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia).
Advertising
McDonald's has for decades maintained an extensive advertising campaign. In addition to the usual media (television, radio, and newspaper), the company makes significant use of billboards and signage, sponsors sporting events from ranging from Little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds. Nonetheless, television has always played a central role in the company's advertising strategy.
To date, McDonald's has used 23 different slogans in United States advertising, as well as a few other slogans for select countries and regions. At times, it has run into trouble with its campaigns.
Children's advertising
See also
- Fast Food Nation, book by Eric Schlosser
- Maxime, McDuff & McDo, documentary film about the unionizing of a McDonald's in Montreal, Quebec, Canada.
- McDonaldization, term used by sociologist George Ritzer to describe the process by which a society takes on the characteristics of a fast-food restaurant.
- McDonald's Video Game, a satirical game placing the player in the role of McDonald's management.
- Don Gorske, a McDonald's enthusiast, has consumed over 20,000 Big Mac hamburgers. He appeared on Super Size Me, is listed in the Guinness Book of World Records, and has a movie called MacDaddy.
- Super Size Me, a documentary by Morgan Spurlock.
References
External links
- McDonald's
- Worlds Biggest McDonald's Photo Collection All kinds of storefronts of McDonald's restaurants in the world.
- McSpotlight, an "Anti-McDonald's extravaganza"
- alt.mcdonalds FAQ
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