Starbucks v. McDonalds On January 7, 2008 the Wall Street Journal reported that McDonalds was introducing coffee bars to 14,000 of its U.S. restaurants . This is a huge project helping McDonalds in its “coffee war” with Starbucks. Like Starbucks, each coffee bar will have its own barista (someone who prepares and serves coffee) and flaunt cappuccino and espresso machines. The company estimates $1 billion in additional sales revenue will be added to the company’s income statement . McDonalds has benefited from several years of strong growth, having nearly $22 billion in sales in 2006.
SWOT Analysis on Pizza Hut According to the National Restaurant Association, food service sales were $320 billion for the 500,000 restaurants in the U.S. in 1997. The U.S. restaurant industry grew 5.2 percent in 1997. Six major segments make up the fast food segment of the food service industry. Sandwich chains, like McDonald's and Wendy's are the number one segment, followed by dinner houses, such as Applebee's and Red Lobster. Pizza chains are ranked third.
The company employed just fewer than 50,000 people and 18,000 have been employed by McDonald’s franchises. Today, more than 2.5 million people in the UK place their trust in McDonalds every day - trusting the Company to provide them with food of a high standard, quick service and value for money. However, in January 2003 McDonald’s recorded its quarterly loss of £168.8m, first time in 48-year history (http://www.mcdonalds.com/.) In order to remain competitive within the food industry, McDonalds’ needs to examine its systems and find opportunities to increase efficiency and effectiveness within its operations. This report will be focused on the marketing aspect of McDonald’s.
UNIT 13- RECRUITMENT AND SELECTION TASK 1 (P1) RECRUITMENT PLANNING McDonalds The business began in 1940, with a restau rant opened by siblings Dick and Mac McDonald in San Bernardino, California. McDonald's Corporation is the world's largest chain of fast-food restaurants, primarily selling fast food. More recently, it also offers salads with the successful expansion of McDonald's into many international markets; the company has become a symbol of globalization. In 1974, McDonalds opened its first restaurant in the Auk. Today more than 2.5 million people in this country place their trust in McDonalds everyday, trusting the company to provide them with food of a high standard, quick service and value for money.
Today the chain has over 34,000 restaurants in 119 different countries from around the world and serving an estimated 69 million customers every day. Some of these restaurants operate under the direct management of McDonald’s s but most of them operate as franchise (80%) or affiliates. McDonald’s earns revenue from the affiliates and franchises through royalties, rent and fees. In 2013 the Corporation
1.0. Introduction McDonald’s Corporation (Plc) is the first worldwide company by sales. Found in over 100 countries and territories in the world and last recorded to be serving 52 millions customers each day, it’s the world’s largest chain of fast food restaurants. The first McDonald’s restaurant and franchise was opened and founded by Raymond Albert Kroc in the year 1955, he was inspired by the speedy service system of the McDonald’s brothers. (McDonalds website) ‘Franchisees are crucial to McDonald’s success; they deliver our brand values straight to the customer.
The Problem Starbucks is an international chain of exclusive coffee stores with the long term objective of becoming the ‘most recognized and respected brand in the world’. Their sales have been growing at a rate of 40% annually with over 5000 stores globally. However, their latest market surveys had indicated that their customer satisfaction level was below what Starbucks had expected. Customers had started associating Starbucks with a faceless, growth oriented, corporate entity. The challenge before the Starbucks management was to bridge the gap in the customer satisfaction levels.
He has made a recovery in the business as he joined when the company took its first quarterly loss. Revenue rose to neraly11% during 2006 and the net profits also climbed. The profits climbed because the new CEO focused on customer service, changing the menu to customers change in tastes for food, and the structural look of his restaurants and modernizing them. The manager of a McDonalds believes she has a problem because of a special that has drawn in a lot of senior citizens. She wants to keep the restaurant a friendly and safe place, several of the employees have grown relationships with the seniors that go in their every day.
Question: Why is expansion in Europe and China so important to McDonald’s? Do you think McDonald’s will face the market saturation it is experiencing at home, where new-store openings have been drastically reduced and scores of existing outlets have closed? Why or Why not? Answer: Before getting into the main discussion a brief detail of the companies discussed in the case is given below: McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles.
* 75,000 contracts catering and in-hours catering jobs. * 20,000 jobs in event management The restaurant industries produce the most income which is not useful to other industries when staff and other fixed costs are taken into consideration, £47.53 contributed for each hour worked. £121.44 per hour in gambling industry and the most profitable of all whole travel services make £102.74 per hour then followed by pubs, bars and nightclubs at £80.89. Four UK nations increased contributing to the economy particularly in Scotland and wales. The hospitality industry highlights the latest figures, 3.2 – 3.1 percent is the overall proportion in this nation.