McDonald’s in Norway

Team 4

Robert Jameson, Becky Tibbenham, Charlotte Jorgensen, Matthew Byler

McDonald’s

World’s largest chain of hamburger restaurants

Serve 58 million people in 119 countries daily

31,000+ locations worldwide

1.5 million employees (2008)

Annual revenue of $22.6 Billion

QSC&V (Quality, Service, Cleanliness & Value)

McDonald’s History

1940s: Began by brothers Richard and Maurice McDonald in San Bernardino, California

1948: "Speedee Service System” established the principles of the modern fast-food restaurant

Current corporation’s Founding April 15, 1955 Franchised restaurant by Ray Kroc - in Des Plaines, Illinois Ninth McDonald's restaurant overall

Kroc later purchased McDonald brothers’ equity He led its worldwide expansion 1965: Company listed on the public stock markets

McDonald’s History

May 4, 1961: McDonald's first filed for a U.S. trademark on the name “McDonald’s”

September 13, 1961: Filed a logo trademark on an overlapping, double arched "M" symbol

McDonald’s History

Kroc noted for aggressive business practices, so the McDonald brothers left the fast food industry

McDonald brothers and Kroc feuded over control of the business, as documented in their autobiographies

McDonald brothers’ original restaurant now a monument

International symbol of globalization Because of its expansion into many international markets,

symbol of globalization and the spread of American way of life Its prominence has made it a topic of public debate about

obesity, corporate ethics, and consumer responsibility

McDonald’s in Norway

Entered Norway in 1983 (the 31st country)

Currently 69 total stores

Last year’s revenue: more than One Billion Kroner ($200-250 million)

McDonald’s in Norway

“The restaurants stretching from Kristiansand in Vest-Agder, to Steinkjer in Nord-Trondelag”

Very different architecture, so location of stores not always where American’s expect

McDonald’s in Norway:Restaurant Structure

Franchising System Primary system when expanding abroad About 80% of McDonald's restaurants overall operate by

franchisees, and 85% of restaurants in Norway are franchised

They believe franchising a key reason for success because they can influence their own work but also use resources, pulling from McDonald's system's experience, network and expertise in operations and development

Locally-owned better for environment Allows for local customization of menu

McDonald’s in Norway:Product Distribution

Control every stage of to ensure product consistency Same distribution systems that distribute products to

individual restaurants But McDonald’s purchases more from local suppliers that

meet certain specifications Norwegian government ensures only approved, high

quality food is used (More on this later)

McDonald’s in Norway: Quality Assurance

Stays in close contact with customers’ tastes and needs, despite rapid global expansion. Through quality assurance centers located throughout

Europe (similar to those located throughout America) Aims to provide 100% satisfaction

Provide training for employees at “Hamburger Universities” (similar to those in America) Promises same basic menu Promises same quality, service, cleanliness and value (QSC&V)

Partnership to work across EU links 29 countries together (similar to different states in the USA with transfers, etc)

Employees from more than 70 countries

Must be at least 16 years old

Can be full-time or part-time

McDonald's is one of the biggest employers for youth: Most of their 2000+ employees are between 16 and 25 years old and working part time in conjunction with school

2008: Voted fourth best workplace among large companies

McDonald’s in Norway: Quality AssuranceMcDonald’s in Norway:Employees

McDonald’s in Norway: Hamburger University

Same program worldwide

Managers go here to learn how to own and operate a McDonald’s restaurant

Learn how to maintain QSC&V

All products, kitchen layouts, and procedures are strictly controlled and essentially the same worldwide

If restaurants cannot maintain QSC&V they are closed, even if highly profitable

Comprehensive Training & Leadership Development: “With so many career opportunities, it is important that we have equal opportunities for training. This is one of the reasons for the high satisfaction among McDonald's employees.”

All employees given the opportunity to further educate themselves by learning new tasks

McDonald’s in Norway: Hamburger UniversityMcDonald’s in Norway: Employee Training

McDonald’s in Norway: Employee Training

McDonald's education prepares people for the challenges that come with increased responsibility

Advancement in the career ladder is very easy

Five-level Career Ladder Restaurant Staff (crew) Assistant Shift Leader Shift Leader Assistant Restaurant Manager Restaurant Manager

McDonald’s in Norway: Employee Training

Continuing education consists of practical and theoretical exercises, courses and exams.

Separate, modern training center in Oslo’s main office

By following the course programs, employees qualify for the next step on the career ladder

Also cross-border cooperation on training and continuing education

McDonald’s in Norway: Employee Wages

McDonald’s follows restaurant industry guidelines, paying wages equivalent to others in the industry.

Company policy is to follow the Norwegian Working Environment

As per union, all employees receive a salary adjustment every year on April 1

Salary rates: Depends on seniority and evening/weekend work Ages 16-17: 88.68 to 98.68 per hour ($14.63 to 16.28) Ages 18-20: 113.68 to 134.99 per hour ($18.76 to 22.76) Age 20+: Starting salary of $134.99 ($22.76+)

80% of their food comes from Norway

Gluten Free (only country for McDonalds)

June 13, 2007: Tested Salmon Wrap

McDonald’s in Norway: The Menu

McDonald’s in Norway: The Menu

Burgers are similar

Norway has most expensive Big Mac in the world (2008)

Norway very health conscious Food has to be approved by Norwegian government:

guaranteed high quality & manufactured in sustainable way

“Our standards often exceed national food safety standards, so our guests will be assured of optimal products and meals when they are in the restaurant.”

McDonald’s in Norway: The MenuMcDonald’s in Norway:Price Comparison

Meal for Two:

1 Filet O’Fish

1 Big Mac

1 Cheeseburger

2 French Fries

1 Smoothie

1 Diet Coke

$31.50

McDonald’s in Norway: The Experience

Very similar to America: Drive Thru, Happy Meals, and Similar Food (mostly)

For Norwegians drive-thrus are not common McDrive Official Website: “Many of our restaurants are drive-thru

restaurants.”

Very Comprehensive Birthday Party Packages

Environmentally Friendly

“We want to give something back to the communities where we operate. Local franchisees often support local clubs and associations to help in their local environment. At national level we have established the Ronald McDonald Children’s Fund, an independent foundation that works to raise money for chronically ill children.”

McDonald’s in Norway: The ExperienceMcDonald’s in Norway:Giving Back

McDonald’s in Norway: Marketing

Employ same competitive strategy in Norway as in U.S. Be first in your market Establish your rand as rapidly as possible Advertise heavily

This strategy has helped McDonald’s succeed in Norway over other fast food competitors

However, they have had to adjust advertising campaigns to be more classy and sophisticated

McDonald’s in Norway: Marketing

• Above is an advertisement for a burger in Norway• McDonald’s has changed brand identity in Europe to

appeal to a more sophisticated population• European operations posted a 2010 second quarter

gain of 5.2 % (compared to America’s 3.7%)

McDonald’s in Norway:Difficulties

Advertisement for McAfrika burger Norway one of world’s

richest countries Bad timing: Africa’s

worst hunger catastrophe

Solution: Donate percentage of profits to African Charities

Interviews

Coming Soon!