– no longer the “great American meal”

Presented By:

Anuranjan

ymt college of management

 McHistory
McBrothers opened a drive-ins restaurant
in 1937.
Based upon self service concept.
Designed their kitchen for mass production
with assembly line procedure.
Known for their speed, service & cleanliness.
By the mid 1950’s it recorded $ 350000
revenues.

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 McHistory
– Ray Kroc finalized a deal with McBrothers for
franchisee and established McDonald system
Inc. to appoint franchisees in 1955.
– In late 1990’s Mcdonald experienced major
problem in sales.
– In 2002; the board decided to oust present
CEO & to bring back retired vice chairman
Cantalupo to overcome the present situations.

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Changes in external environment:

Change in Consumer Preference:

Eating at home

Health Conscious

Stiff Competition

Company’s Image

Saturation of core markets

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 Internal Environment:

• Poor Franchising Policy

Service and Quality compromised

Lack of Innovation

• Unhappy Franchisees

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 Franchising Model: Problems

Unplanned Expansion

No Quality Control Measures

Centralized decision making

Concentrated in selected markets

Lack of customer service standard

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Franchising still best if:

Planned properly

Quality control

Service standard defined

employees are trained properly

franchisees consulted and valued

evenly dispersed
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Cantalupo’s efforts: not enough

Our suggestions:

Rework on the menu

Expand in growing markets

Make efforts to change its image

Give customers what and as they want

Keep franchisees happy

ymt college of management
THANK YOU!

ymt college of management