VISION

‘To be the best and leading fast food provider around the globe’

"McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."

MISSION

NUMBER OF STORES

McDonald's Corporation is the world's largest chain of fast food restaurants, serving nearly 47 million customers daily through more than 31,000 restaurants in 119 countries worldwide.

Of the 31377 McDonald’s restaurants around the world, 20505 (65%) are operated by franchisees, 3966 (13%) are operated by affiliates, and 6906 (22%) are company-operated.

• Business Mode l :• · Franchise Model – Only 15% of the total number of restaurants

are owned by the Company. • The remaining 85% is operated by franchisees. The company

follows a comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service,

• Cleanliness and Value propositions offered by the company to its customers.

• · Product Consistency – By developing a sophisticated supplier networked operation and distribution system, the company has been able to achieve consistent product taste and quality across geographies.

• · Act like a retailer and think like a brand – McDonald’s focuses not only on delivering sales for the immediate present, but also protecting its longterm brand reputation.

• Cleanliness and Value propositions offered by the company to its customers.

• · Product Consistency – By developing a sophisticated supplier networked operation and distribution system, the company has been able to achieve consistent product taste and quality across geographies.

• · Act like a retailer and think like a brand – McDonald’s focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation.

NUMBER OF EMPLOYEES 1.5 million

worldwide– (398,000 company

staff,1.1 million franchisee staff)

STAR QUESTION MARK

CASH COW DOG

GROWTH RATE

MARKET SHARE

HIGH

LOW

HIGH LOW

STAR QUESTION MARK

McDonald’s franchisee in India

• Since the year 1996 McDonalds was opened through out India

• McDonalds franchise in India is an organization that is managed in form of joint venture by Indians and is not in a franchise form

• The western part of India is managed by Hardcastle Restaurants Private Limited of Amit Jatia. In the northern side it is managed by Connaught Plaza Restaurants Private Limited of Vikram Bakshi. These two companies take building for its running on a long term basis

• The basic requirement of space for its start is 2,500 to 3,000 square feet area for carpet spreading on the floor

• minimum height of the building needs to be 11 feet and it even requires at least 40 feet frontage space.

The investment made in this joint venture is done by these both companies. •. McDonalds franchise in India does not work but still the quality of food available here makes it different from other eating outlets•McDonalds has been he foremost company to have started the business of franchising in the world. Its total investment has been around $506K to $1.6M•The fee of franchising is $45K•. The Annual McDonalds franchise revenue for the year 2005 was $633,000 and Annual revenue for the complete chain of McDonalds is $20.46 billion.

How to buy a old McDonalds franchise?

• Before buying any McDonalds franchise outlet it is crucial for businesses to have information regarding the location, accessibility, demand and other relevant factors which enable businesses to decide upon which is the best McDonalds franchise to buy in order to get fast foods that are demand driven

• · What was the profit margin made by the McDonalds outlet previously

• Ownership of the franchise• · Location

How to open a new franchise with McDonalds

• In order to fill up the online form of the company

• . Apart from this, the individual is also required to have a $ 1,00,000 as cash. One should remember that the franchisee has to pay around $5,00,000 to 10,00,000 to get started with the business which includes the cost of setting up the business

• The company gets an annual fee of $ 45,000 on yearly basis including a royalty of 12.5% which includes the McDonalds franchise application

• If the franchisee is not comfortable in paying the whole amount in one go, then he has the option of paying 25% of the amount on cash and the rest of the amount can be forwarded in a period of 7 years.

• The company norms stare that every franchise has to hire at least 20 who fully trained with the processing of the McDonalds fast food.

• In order to equip the training program, the company also facilitates an in-house training program which enables the franchise in managing the business in a suitable manner

• McDonalds also provides full support in publicity of its franchise world over and it also remains in touch with its franchisee through Internet and other source of information .

• As famous mc donalds system will support in various areas like training, marketing, and operating.

• Before an owner makes a franchise successful it completes it training programme. This is for nine months.

• The franchise of mc donalds are purchased by combining personal finance along with bank finance.

• it is stated that an individual should have minimum 25% of total purchased price in the form non borrowed funds

• The agreement of mc donalds franchise is for 20 years in this agreement the property is owned by mc donalds and the equipments of restaurant kitchen are owned by the owner

• . Franchises have the responsibility to maintain the standard of restaurant and décor.

Mcdonalds franchise information on finance model

• 1-Conventional Franchise :- This includes the price based on the profitability of restaurant i.e. a candidate should have at least 25% of the price in non borrowed funds.

• 2:-Business facilities lease:-This is provided rarely by Mc Donald's in this all the people who are unable to meet financial requirements and are unable to excess all the other things then Mc Donald's grant the business facility lease to those people.

• McDonalds Franchise Information on ongoing fees For the use of property mc donalds charge monthly rent. And this is based on various levels of monthly sales and vat is deducted from the amount.

3:-McDonalds royalty

• In this method the franchisor makes his cash payment at the end of each month and the amount to be paid is fixed and does not depend on the daily income of the franchisee.

• . The monthly charge paid by the franchisee helps him updating his business strategy in daily basis.

• This money paid is regarded to be security against the franchise you buy.

• . The money paid in royalty to the franchisor makes it use the amount for any further development of the business you take up

• There are many structures that are followed by the franchisor to take payments from franchisee

• Some of the ways by which the payments can be made are flat fee, percentage on the sale of the franchisee and percentage of gross sale made by the franchisee. The amount to be paid in royalty is found to be negotiable.

• McDonalds has been he foremost company to have started the business of franchising in the world. Its total investment has been around $506K to $1.6M

• Before investing on any McDonalds Franchise it is necessary that you study the profit maximisation that the outlet has previously made

• if you are starting a new franchise with McDonalds it is necessary to know the amount of profit made for the annual year

• - Franchise fees, marketing, and royalties- $45k, +12.5% & 4%

• - Annual sales-1.3m• - Gross profit- $916k