One of the best examples of a successful restaurant franchise business is that of McDonald’s. There are ample of franchises like Subway franchise, Taco Bell franchise and much more, but the McDonald’s Franchise has increased its revenue considerably since its establishment. McDonalds already has around 35,000 franchises in 100 countries and is still growing.
The restaurant franchises have faced a prominent growth since its subtle beginnings. The very first McDonalds restaurant was opened in San Bernadino, California by Dick and McDonald. At that time, there were 25 items listed on the menu while the customer base was mostly teenagers.
How did this fast food franchise turn into the most famous and desirable chain of restaurant from a single shop?
Established in 1940, this chain already faced immense growth by 1954 when this restaurant franchise extended to 4 branches. Soon, the restaurant gained the attention of Raymond Kroc, who was an equipment supplier. He acquired the distributorship of multimixer, an equipment used to milk shakes by mortgaging his house as well as his savings. McDonalds gained his attention as they were using 8 multimixers that were more than any other restaurant.
The man in FMCG distribution visited McDonalds and witnessed how efficiently the restaurant was serving multiple customers. He took this opportunity to present a proposal to the McDonald’s bothers to let him open a McDonald’s franchise outside California. The idea of selling more multimixers also pushed the idea of building a restaurant franchise.
The offer was accepted and soon Kroc launched the McDonald’s Systems Inc. as a legal restaurant franchise for McDonalds in 1955. In 1961, McDonald’s brothers sold the entire business to Kroc for a sum of $2.7 million.
McDonald’s has a set of standards that makes it one of the most widely preferred franchise. Mc Donald’s Restaurant Franchise grew popular because of the motive Kroc had for his business. Excellent marketing tactics made McDonalds grow further. Very soon, families with children and teenagers starter preferring McDonalds.
Changing as per the needs of customer’s is the secret of Mc Donald’s success
This restaurant franchise keeps upgrading with innovation and market conditions to maintain its success.
The franchise was started with hamburgers, fries and milk shakes in its menu. It also experimented with different tastes and demands from the customers. Also most of the items from McDonalds were based on researches and studies. For instance,
Ohio franchisee stated that burger sales were reduced on Friday. As a reaction, McDonalds put Filet-o-fish sandwich on the menu for Catholics that don’t prefer meat on Fridays. This was a major success
In 1968, the Big Mac was developed and it was a brainchild of Jim Delligatti, owner of a McDonalds franchise
Egg Muffin too was introduces by one of the restaurant franchise owners, Herb Peterson
Happy meal and McFlurry were also introduces by franchisees
The first franchise to gain intense fame in FMCG distribution,McDonalds has always catered to customer needs changed their menus as per demands and maintained consistency while surviving market fluctuations.