McDonald's restaurants and "McDonaldization"

Identification Fast-food corporation

Date Founded on April 15, 1955

By the mid-1950s, automobiles and drive-in restaurants were part of the American lifestyle. McDonald’s successfully met the need for fast service, low-cost meals, convenience, and a child-friendly atmosphere. It became the world’s largest fast-food restaurant chain and a symbol of American culture. The term “McDonaldization” was coined to describe the homogenization accompanying the globalization of American culture.

The original business concept behind McDonald’s restaurants emerged in 1948 with the first such restaurant, in San Bernardino, California. At this hamburger, french fries, and milkshake stand, brothers Maurice and Richard McDonald implemented their revolutionary “Speedee Service System,” the basic format of the modern fast-food restaurant. This self-service, assembly-line system eliminated the need for waiters, carhops, dishwashers, and bus boys. Paper plates and plastic utensils replaced dishware, glassware, and silverware.

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In 1954, Ray Kroc, the exclusive distributor of the Multimixer milkshake mixer, was intrigued that the McDonald’s restaurant was running eight Multimixers at once. After observing the restaurant’s busy daily operations, he was impressed with how efficiently and cheaply it was able to produce and sell large quantities of food.

Kroc proposed a franchise program. On April 15, 1955, he opened the first franchised McDonald’s restaurant in Des Plaines, Illinois; he incorporated later that year. Kroc sold franchises, requiring owners to become restaurant managers and to follow the McDonald’s automation and standardization models. In 1961, Kroc purchased the McDonald brothers’ equity in the business for $2.7 million. By then, sales had reached $37 million and there were 228 restaurants. Over one billion hamburgers had been sold by the end of 1963. McDonald’s issued stock, becoming a publicly traded company in 1965. When Kroc died in 1984, there were more than 7,500 McDonald’s restaurants worldwide.

McDonald’s created famous symbols and products to define its brand. The rooftop “golden arches” were replaced by the trademark double-arch “M” logo in 1962. In 1963, the iconic Ronald McDonald clown appeared, and in 1974, the first Ronald McDonald House opened in Philadelphia to house families of critically ill children away from home.

McDonald’s introduced the Big Mac sandwich in 1968, the Egg McMuffin in 1973, Happy Meals for children in 1979, Chicken McNuggets in 1983, salads in 1985, and a premium salad line in 2004. In 2006, McDonald’s premium coffee made its debut to compete with Starbucks and Dunkin’ Donuts coffee. In response to health concerns, McDonald’s began including nutritional information on packaging.

By early 2008, the McDonald’s Corporation had thirty thousand local restaurants in more than one hundred countries. With 75 percent of the restaurants owned and operated by franchisees and affiliates, McDonald’s was serving more than 54 million customers daily. However, McDonald's business began to suffer globally, but especially in the United States, as consumers have increasingly gravitated toward healthier and organic food options. Though, as of 2015, the company boasted thirty-six thousand restaurants serving approximately sixty-nine people on a daily basis, proof of their declining sales came in the form of a statement regarding their traditional practices for sourcing chicken. In the early months of 2015, McDonald's announced that within two years, it would only be selling products using chickens raised without antibiotics in its US locations, attempting to cater to a public drawn to competitors marketing such healthier options; the incorporation of low-fat milk from cows not treated with artificial growth hormone was also promised. Meanwhile, controversy arose when companies such as Wal-Mart increased workers' pay but McDonald's seemed to hold firm at offering only the minimum wage.

Bibliography

Kroc, Ray, and Robert Anderson. Grinding It Out: The Making of McDonald’s. New York: St. Martin’s, 1987. Print.

Love, John F. McDonald’s: Behind the Arches. Rev. ed. New York: Bantam, 1995. Print.

Rampell, Catherine. "Being a Poor Corporate Citizen Is Hurting McDonald's." Washington Post. Washington Post, 2 Mar. 2015. Web. 4 Mar. 2015.

Spurlock, Morgan. Don’t Eat This Book: Fast Food and the Supersizing of America. New York: Putnam’s, 2005. Print.

Wahba, Phil. "McDonald's to Serve Only Antibiotic-Free Chicken in Bid to Boost Image." Fortune. Time, 4 Mar. 2015. Web. 4 Mar. 2015.