Started in 1955 when the legendary Ray Kroc decided to franchise the McDonald brothers’ fast-food concept, McDonald’s has grown into the largest restaurant chain in the world with almost 32,000 stores in 120 countties.For decades, McDonald’s success was grounded in a simple formula: give consumers value for money, good quick service, and consistent quality in a clean environment and they will come back time and time again. To deliver value for money and consistent quality, it standardized the process of order tak¬ing, making food, and service. Standardized processes raised the productivity of employees while ensuring that customers had the same experience in any restaurant. McDonald’s also developed close ties with wholesalers and food producers, managing its supply chain to reduce costs. As it became larger, its buy¬ing power enabled it to realize economies of scale in purchasing and to pass on cost sav¬ings to customers in the form of low-priced meals, which drove forward demand. And then there was the ubiquity of McDonald’s; wherever people went, they could find one of their restaurants. This, coupled with the consistent experience and low prices, drove brand loyalty.
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