Table of Contents

No.

Introduction................................................................................................................................1

History of Mcdonald’s....................................................................................................... 2

Map of its International Connection..........................................................................................5

Major Country Leaders...............................................................................................................6

McDonald's in the Philippines....................................................................................................7

McDonald's and its Effects

on Global Economic Activity.......................................................................................................7

McDonald's and its Effects in the

Philippine Economy.....................................................................................................................8

Conclusion.......................................................................................................................... 19

Citation/References............................................................................................................10

Researcher’s Profile........................................................................................................... 11

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 INTRODUCTION

Who doesn’t love food, right? For the past years, we humans, have
continued to strive for food production as much and as quick as possible. That’s
why fast-food chains began to emerge in the world of production. In a fast-food
industry, production process has the greatest importance. It helps in reducing
cost, reduce delivery time, help increase the revenues and at the same time strive
for continuous improvement. McDonald's cultivates business partnerships with
local suppliers who not only supply them with items of the best standard and
quality, but also with best quality products and standard.

McDonald's is a well-known fast-food chain. McDonald's business

transcends majority of the world, making it one of the most well-known
franchises. McDonald's provides a variety of food choices and provides a
variety of toys for youngsters. The whole menu is reasonably priced and
excellent. McDonald's fast-food outlets, for example, provide reasonable rates,
delectable meals, and effective advertising. But how does this world-renowned
company earned its wide range of dominion? Let’s take a look at its history.

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 HISTORY OF MCDONALD’S

The McDonald Brothers

It all started when the two brothers Maurice and Richard McDonald, also
known as Dick and Mac, relocated to California in search of chances that they
couldn’t find in New England. After failing in the film industry, they found
success in organizing a drive- in eatery. In 1940, Dick and Mac McDonald open
McDonald's Bar-B-Q restaurant on Fourteenth and E streets in San Bernardino,
California. It is a typical drive-in featuring a large menu and car hop service,
but the McDonald brothers eventually shut down their restaurant for three
months for alterations.

(The McDonald brothers in front of the not yet opened first McDonald's, November 1948, San
Bernadino, CA)

In December of 1948, it reopens as a self-service drive-in restaurant. The menu

is reduced to nine items: hamburger, cheeseburger, soft drinks, milk, coffee,
potato chips, and a slice of pie, with a staple menu of 15 cents hamburger. The
brothers sold 14 franchises of which 10 became operating restaurants not
including their original location in San Bernardino.

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Ray Kroc
In 1954, they met Ray Kroc, who happened to be a salesman and was
there for a delivery of Multimixer he’s selling for a restaurant of the said
place. Kroc was amazed by how their business was running smoothly. They
produced a limited menu, concentrating on just a few items–burgers, fries
and beverages–which allowed them to focus on quality and quick service.
Kroc spotted a potential when Dick and Mac were seeking for a new
franchising agent.

He established McDonald's System, Inc., a forerunner of the McDonald's

Corporation, in 1955. He also established the first McDonald’s in Mississippi
River on the same year. Six years later, he purchased the exclusive rights to the
McDonald's trademark and operating system. McDonald's had produced its 100
millionth hamburger by 1958.

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The Legacy
In 1956, Fred Turner, future McDonald's Chairman, was hired to work as
a counter man for the Des Plaines McDonald's. He soon became the head of
McDonald's Operations defining the quality, service and cleanliness that
continued to this day. In 1961, Hamburger University opened in the basement of
the Elk Grove Village, Illinois, McDonald's restaurant. The graduates receive
Bachelor of Hamburgerology degrees. Then in 1965, the Filet-O-Fish sandwich
was the first item added to the national menu, created by Lou Groen,
McDonald's Cincinnati franchisee to help build volume in the predominately
Roman Catholic community in which his store was located. The Big Mac,
developed by Owner/Operator Jim Delligatti of Pittsburgh, is added to the
national menu in 1968. 1973, the Quarter Pounder and the Quarter Pounder
with Cheese are added to the menu. The first Ronald McDonald House, in 1974,
opens in Philadelphia, Pennsylvania. In 1973, Fred Hill, a football player with
the Philadelphia Eagles, had the need for such a facility at Children's Hospital
in Philadelphia, where his child was being treated for leukemia. Hill’s dilemma
led to the first Ronald McDonald House. It was 1975, when the Egg McMuffin,
created by Owner/Operator Herb Peterson of Santa Barbara, California is
added to the national menu. 1983, when chicken McNuggets are introduced into
all domestic U.S. restaurants.

Ray Kroc, then died on January 14, 1984. On January 31, 1990, the
first McDonald’s restaurant in Moscow opens which was located in Pushkin
Square, more than 30,000 customers were served on opening day. In 1993, the
world’s first McCafé opens in Melbourne, Victoria Australia. 1995 McFlurry
Desserts, invented by Ron McLellan, are added to McDonald’s Canada menu.
McDonald’s published its first ever Social Responsibility Report on April 15,
2002. McDonald’s first global ad campaign, “I'm Lovin’ It” is launched in
Munich, Germany on September 2, 2003. McDonald’s USA launched All Day
Breakfast in 2015. Global McDelivery Day is celebrated on July 26, 2017 to
support the global launch of McDelivery with UberEATS and in 2020
McDonald’s opens its first net zero-designed restaurant at Walt Disney World
Resort, which creates enough renewable energy on-site to cover 100% of its
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energy needs on a net annual basis.

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Map of International Connection

McDonald’s is undoubtedly the world’s leading quick service restaurant

with over 39 thousand locations in over 120 markets. Not only is the chain wide-
spread it was by far the most valuable fast-food brand in the world in 2020, with
an estimated brand value of approximately 129.32 billion U.S. dollars. The only
food service company that came close was coffeehouse chain Starbucks, its
brand value amounting to the much smaller sum of approximately 47.75 billion
U.S. dollars. Not only has McDonald’s made a name for itself in the fast-food
industry–but on an intersectoral level as well. In 2020, it was ranked ninth
among other leading global brands such as Apple, Amazon and Facebook. Top
ranked, and therefore most valuable, was Amazon which recorded a brand value
of nearly 416 billion U.S. dollars. American-based fast food restaurant chain
McDonald’s has become one of the symbolic institutions of globalization. The
company is now active in around 120+ countries and runs more than 39,000
outlets around the world. If seen as an icon of globalization, then the
distribution of restaurants also is an indicator for the underlying global
inequalities: Europe and North America dominate the global picture, while
especially China has grown considerably ever since in 1990 the first outlet
opened. Seven countries have seen the company disappear from their market

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again (Barbados, Bermuda, Iceland, Iran, Jamaica, and Macedonia).

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Major Country Leaders

McDonalds have grown and continuously expanding its franchise towards

the global food chain industry and reached every country in the world. In order
to continue the expanding business, McDonalds have identified it major country-
leaders and they are arrange orderly starting from the top country. Based from
survey and published at the thoughco.com and statista.com, as of January,
2020 McDonalds have 38,000+ franchise restaurants over 100 locations and
reached 39,198 franchise restaurants by the end of year 2021.

According to www.verdict.co.uk, top countries are as follows: United States

of America, Japan, China, Germany, Canada, France, United Kingdom, Australia,
Brazil, Russia, Italy, Philippines, Spain, South Korea, and Poland. Among these
countries, the United States of America is considered as top country for it is the
home-based of the McDonalds and also served as the main office for the operation
of the chain business of McDonalds. With 14,000+outlets in the US, McDonald’s
domestic market is by a long way it’s biggest, followed by Japan and China.

However, McDonald’s has only opened a net 24 additional stores in the

US since 2010, with most of its growth coming from elsewhere in the world.
However, in Japan 408 McDonald’s locations have closed between 2010 and
2017, due to a number of food scandals in 2014 and 2015, which knocked trust
in the brand. Ignoring the Virgin Islands, outlet density is strongest within
mature markets, led by the US, Canada, and Australia.

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McDonald's in the Philippines

Countries such as Philippines have seen the newest McDonald’s

openings over the past seven years. According to verdict.co.uk, the
Philippines was considered one of the McDonalds’ fastest growing markets
since 2010, with more than 250+ outlets the time it was started to reached
the country. McDonald’s ended 2020 with 655 stores in the country, down
from 669 branches at the start of the year. According to statista.com, in
2019, the revenue of McDonald's Philippines amounted to approximately 32
billion Philippine pesos. The company's revenue has shown a year-to-year
growth over the past years. This shows that the Philippines is one the country
that supports the international interconnectedness among McDonalds sites
and Philippines serves as one of the crucial and vital point in the map of
interconnectedness.

McDonald's and its Effects on Global Economic Activity

McDonald's is now the largest contributor when it comes to the fast-food

industry's market share. It created about 450,705 jobs per year only including
the US. The restaurant provides food for people in 119 countries. On a daily
basis, McDonald's serves about 62 million people which equals to be greater
than the population of Great Britain. In 2012, the restaurant made about 24

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billion in revenue placing them as the 90th largest economy in the world.

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 McDonald's worldwide revenue has risen significantly as the company
has grown worldwide. From the early stages of just reaching the edge of one
billion US dollars in total sales, the total worldwide revenue in December 2014
was 27.44 billion USD (US dollars) and reached one of its highest peaks in 2013
with a worldwide revenue of 28.11 billion USD and it's currently growing at a
tremendous pace and in a variety of ways, including culture, charity, and
franchises. McDonald's also positively affects the economy by supporting local
programs and charitable causes. Due to a deep love for children, McDonalds
created The Ronald McDonald House Charities that has successfully helped
many sick children.

McDonald's and its Effects in the Philippine Economy

According to McDonald's Philippines President and Chief Executive

Officer Kenneth Yang, McDonald's opening more new restaurants provide a
huge opportunity in generating new jobs and provides world-class training for
thousands of young Filipinos. Through this, many Filipinos were given a chance
to have a job even without a degree and also provides scholarships. It has over
570 stores and almost 60,000 regular employees.

More than employment generation, McDonald’s also aided in youth

development through programs of its charity of choice, Ronald McDonald
House Charities (RMHC). At the end of 2019, Ronald McDonald House
Charities now has a total of 34 Ronald McDonald Bahay Bulilit Learning
Centers all over the country, opening 3 new centers in Imus, Cavite, Lapu Lapu,
Cebu and Davao City, in partnership with DSWD and LGU.

For 2020, RMHC sets its sights to open 5 more Ronald McDonald Bahay
Bulilit Learning Centers as part of its 25th anniversary across the country with
1 each in Metro Manila, North Luzon, South Luzon, Visayas and Mindanao.

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 Conclusion

McDonald's has been able to keep on top of the fast-food service sector
while offering excellent service and quick meal deliveries in today 's high-
tech culture. It's not an easy effort to maintain on top of food economy and
consumers' ever-changing tastes, which is why I am quite amazed by how the
company has managed to flourish over time. McDonald's will be facing some
challenging problems, particularly in such times. Establishing its main
elements, such as the uncompromising focus on consistency and quality,
while cautiously trying out new ideas, will be crucial to its continued success.
McDonald's will certainly be around for plenty more years to come.

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 Citation/References

https://www.worldatlas.com

https://corporate.mcdonalds.com

https://www.thestreet.com/markets/history-of-mcdonalds-15128096

https://www.statista.com

https://www.mcdonalds.com.ph/opportunities/franchising

https://nhdbbt.weebly.com

https://businessmirror.com.ph

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Researcher's Profile

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